Mongolia’s Mineral Resources Council (MRC) has released its initial comments on Meritus Minerals’ application for exploration licences at its Gutain Davaa project in northeast Mongolia. The MRC appointed two experts to review the applications and make recommendations to the full committee for consideration.
Meritus says initial feedback provided to the company has prompted staff to make necessary amendments.
The resources at Gutain Davaa have not been established with NI 43-101 or JORC code requirements as Mongolia requires such applications to be submitted in compliance with the Mongolian law, which classifies resources as category B or C reserves.
Under the Mongolian system, the resources at Gutain Davaa and Toordogiin Shil prospects, are all within an exploration licence which expires in August 2012. Another licence area has already expired and the application over this may not be accepted by the MRC. If this should occur Meritus says it will continue to pursue all possible legal options to retain access to the area.
The company expects the revised submission to be considered by May and after a review process of about four weeks, Meritus hopes to be in a position to negotiate a pre-mining agreement with the Mineral Resource Authority of Mongolia (MRAM).
The company says such an agreement will require completion of feasibility studies prior to the establishment of a mining operation.
Meritus announced it had identified targets for future diamond drilling at the Gutain Davaa and Toordogiin Shil prospects in November last year, after soil sampling revealed strong anomalous and gold mineralization.