Drilling has started at Haranga Resources’ Shavdal iron ore project in Sukhbaatar province. The first pass program will comprise about 2500 metres of reverse circulation drilling and is targeting an intense magnetic anomaly that is coincident with extensive high grade mineralization identified at surface.1

Shavdal is near the provincial capital of Baruun Urt in eastern Mongolia and close to the operating iron ore mines of Ervei Khushuu and Tumurtei Ovoo. Baruun Urt lies along the path of the recently approved east-west rail line development that will connect the Tavan Tolgoi coal mine in the southwest to the rail terminal at Choibalsan in the northeast.

The Ervei Khushuu mine currently exports a magnetite concentrate product using the rail terminal at Choibalsan.

Meanwhile, a ground magnetic survey of the entire Selenge iron ore project area has been completed and the first processed imagery has become available. The survey has identified large new targets within the area of the licences and has enhanced the ability of the company to target previously identified iron occurrences.

Selenge consists of five contiguous exploration licences covering almost 600sqkm of ground in the heart of Mongolia’s premier iron ore development region, to the north of Ulaanbaatar close to the Russia border. Selenge province is host to the nearby Eruu Gol iron ore mine and the significant iron ore deposits at Tumurtei and Tumur Tolgoi. The area has excellent access to the Trans-Mongolian rail line and nearby rail spurs.

The 5700 line km survey revealed two intense magnetic anomalies covering about 15sqkm and 8sqkm respectively in the northwest of the project area and reporting the highest levels of magnetic anomalism recorded during the survey.

Haranga plans to drill test the primary targets at Selenge during the 2011 field season and also plans to start a first pass RC drilling program at the Sumber iron ore project in southern Mongolia in March or April.


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