The Asia Miner

OCT-DEC 2015

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 34 of 71

October-December 2015 | ASIA Miner | 33 DRILLING by the Ekhgoviin Chuluu Joint Venture (ECJV) of Aspire Mining and Noble Group at the Nuurstei Coal Project has intersect- ed many thick coal seams. The ECJV intends to use results from the drilling as part of a scoping study for the project. Mobilization of two drill rigs to the site occurred in late July and about 40 non-core and PQ diamond drill holes were planned for the drilling program which was expected to be completed by the end of September. Up until late August the best coal intersections were found in one drill hole with cumulative apparent thickness intersections of 15.3 metres from 51.4 metres and 9.6 metres from 71.6 metres. The coal seams are consistently steeply dipping and banded. The thick coal packages in this hole are suspected to be structurally thick- ened by reverse faults that have repeated the coal seams. The ex- act fault geometry is unknown at this stage. The ECJV prepared the 2015 drilling program with the aim of in- creasing confdence levels in coal seam correlation and establishing coal resources that can be reported in accordance to the 2012 JORC Code. The defnition of resources that can be reported in accordance to JORC would enable the ECJV to also proceed with application for a mining licence. All proposed PQ diamond drill holes were drilled to collect coal samples to be sent to laboratories for coal quality analysis. These tests are designed to confrm if coal coking characteristics of coal are present across the deposit. The results of core sampled in 2014 suggested the presence of coking coal at Nuurstei. Nuurstei is near the capital town of Moron in Mongolia's Khuvsgul province and alongside the Erdenet to Ovoot railway which is be- ing developed by Aspire subsidiary, Northern Railways LLC. Given its strategic position close to infrastructure such as Moron, power, sealed road and existing rail at Erdenet, Nuurstei could be a near- term development opportunity. While initial production could be transported from the mine site to the Erdenet rail siding by road, Nuurstei coal would have access to the Erdenet to Ovoot railway within approximately two years of commencement of its construction and thereby become one of the frst users of this railway. The Mongolian Government has resolved to enter into a conces- sion agreement with Northern Railways, and a consortium compris- ing Aspire and Fortune-500 listed China Railway Construction Cor- poration subsidiaries, for the construction of the railway that could commence as early as 2017. A DEFINITION and expansion diamond drilling program at Erdene Resource Development Corp's Altan Nar Gold-Polymetallic Project aims to increase confdence in high-grade, near-surface zones. The program of about 1500 metres started on August 7 and results are expected before the end of the year. Infll drilling is being carried out at Union North (UN) and Discovery Zone (DZ) prospects and Erdene also plans to test several new targets outside the initial resource area. UN and the northern part of DZ (DZN) are the most advanced tar- gets in regards to initial development with wide zones of high-grade mineralization identifed in trenching and drilling. The drilling has also been designed to provide higher confdence in the initial pit location and design. On March 31 Erdene announced an initial NI 43-101 mineral re- source estimate for DZ and UN, two of 18 targets identifed along the 5.6km long Altan Nar mineralized corridor. The resource consists of 147,000 ounces gold equivalent averaging 2.5 grams/tonne gold equivalent in the indicated category, and 102,000 ounces averag- ing 2.1 grams/tonne gold equivalent in the inferred category. Erdene is considering various options for Altan Nar development and from a processing perspective, exploring the production and export of precious and base metal rich concentrates and/or carbon in leach (CIL) gold recovery on whole ore or concentrate. The focus is initial development of DZN and/or the UN portions of the resource which have the highest volume and highest grades. Repre- sentative composites of drill core from each zone have been delivered to Blue Coast Research in British Columbia for initial test work. This includes preliminary level test work focusing on the suitability of fotation to produce separate lead, zinc and sulphide (arseno- pyrite/pyrite) concentrates to determine where the precious metals are concentrated, and then tailoring the process to enhance those recoveries. A key element of the program will be CIL testing on the whole material and selected fotation streams, which will provide fexibility in considering future process development options. Erdene continues to be active through its alliance with Teck Re- sources in assessing regional base and precious metal opportuni- ties in southwest Mongolia's emerging Tian Shan copper-gold belt. In 2015 the Mongolian mineral licence staking system re-opened after a fve year hiatus with designated areas in the western half of Mongolia available for staking. Since the re-opening Erdene has se- cured two exploration licences. This regional exploration is funded through private placements by Teck. New drilling at Altan Nar project Thick coal seams intersected at Nuurstei The Nuurstei project is in Mongolia's north, near a proposed new rail line.

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