The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region
Issue link: http://asiaminer.epubxp.com/i/786114
Volume 14 • Issue 1 | 2017 | ASIA Miner | 17 DRILLING at Erdene Resource Develop- ment Corp's Altan Nar Gold-Polymetallic Project has returned strong results, includ- ing 110 metres of 9.3 g/t gold, 32 g/t silver and 1.4% combined lead-zinc. This hole was testing a conceptual target at a struc- tural intersection in the Discovery Zone (DZ). The 110 metres included 14 metres @ 55.6 g/t gold and a high of 155 g/t, 131 g/t silver and 5.65% combined lead-zinc; and 5 metres @ 24.8 g/t gold with a high of 86.5 g/t, 49.8 g/t silver and 3.48% combined lead-zinc. "The hole was heavily mineralised from surface to 170 metres, and includes the highest grades and most continuous zone, laterally and vertically, intersected to date at Altan Nar," said Erdene president and CEO Peter Akerley. DZ is one of 18 mineralised target areas identified within a 5.6km by 1.5km miner- alised corridor. DZ has been drilled over a 500 metre strike length in the upper 150 metres, however was not fully tested in the central area due to initial low-grade results. The new hole was in the central area. The discovery at the intersection of ma- jor structures provides strong support for additional drilling. Future exploration will fo- cus on establishing continuity of this new high-grade zone and exploring areas where zones of structural dilation may have provid- ed a favourable setting for concentration of metal-rich solutions. A high-resolution mag- netic survey is also planned to evaluate the potential for similar cross-cutting structures at the 17 other target areas. Deep drilling at Discovery Zone North con- firmed narrow high-grade mineralisation at depth while the Union North potential was expanded with 22 metres from 34 metres @ 1.57 g/t gold equivalent. The maiden drill program at Altan Arrow prospect, 13km to the southeast, intersect- ed shallow, high-grade veins returning up to 2 metres @ 23.5 g/t gold and up to 2 me- tres @ 171 g/t silver. There were wide inter- vals of near-surface, lower-grade gold-silver mineralisation intersected. Results confirm the presence of high- grade gold-bearing veins and broad struc- turally controlled lower-grade zones with similar style to the Bayan Khundii Gold Proj- ect, 3.5km to the south, albeit with higher silver values. A follow-up program will in- clude additional exploration as well as fol- low-up of a large gold-in-soil anomaly. At Bayan Khundii recent drilling has ex- panded the new Midfield gold zone under younger cover, 200 metres northeast of the main Striker gold zone. MONGOLIA'S Government has awarded a permit to Khot Infra- structure Holdings' majority-owned subsidiary Ashid Munkhiin Zam LLC (AMZ) for construction of a 110kV powerline. The permit allows AMZ to further increase the scope and scale of bidding opportuni- ties in the powerline construction sector. Khot's COO Erin Chutter said, "We are very pleased to add this permit to our arsenal which now includes road and bridge building, road maintenance and rail bed construction licences. "The optimism and excitement around the US$5.2 billion expan- sion of Oyu Tolgoi has brought new investor interest to Mongolia and heightened interest in these burgeoning infrastructure sectors." In June 2016, the leaders of Mongolia, China and Russia agreed to cooperate on development of an economic corridor, including investments in upgrading the Trans-Mongolian rail line and focus on road transportation infrastructure. AMZ previously announced the acquisition of three other import- ant licences in the rail bed, road construction and asphalt provision sectors. All are critical for ongoing relationship negotiations under way with major financial and construction entities that will enable AMZ to fully exploit these major infrastructure opportunities. Khot also intends to acquire a final 25% interest in AMZ from a company controlled by affiliates of Firebird, Khot's largest share- holder, bringing Khot's holdings to 100% of AMZ. Khot's goal is to become the leading Mongolian transportation contractor and the preferred choice for employees, shareholders and partners. Its focus is on high margin contracts, such as high- ways and regional roads, and its mission is to provide the infrastruc- ture needed for Mongolia. Khot's in-country management team says the success of the Mongolian People's Party in the June 29 elections, in which it gained 67 of 76 seats, would help ensure political stability for four years and enable government to implement new policies designed to attract foreign capital and stimulate domestic growth. "The party has a mandate to fast track critical Mongolian infrastructure needs and the new government has acted swiftly to address the delays in executing key concessions," Erin Chutter said. "In August the government announced its four year master eco- nomic development plan. This includes a major infrastructure fo- cus - extensions to the electrical grid; expanding paved roads con- necting provincial centres and continuation of the Millennium road project; and further rail and rail bed projects linking major trading partners." Powerline permit awarded to Khot Strong Altan Nar results for Erdene Visible gold in core from a drill hole at the Bayan Khundii project in southwest Mongolia.