The Asia Miner

JUL-SEP 2017

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

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30 | ASIA Miner | Volume 14 • Issue 3 | 2017 ASPIRE Mining has received an expression of interest to fund a modular Coal Handling and Processing Plant (CHPP) at Nuurstei Coking Coal Project. The interest has come from ODDO BHF, a German private bank and financial services group. While the terms and conditions will be negotiated and approved following final confirmation of Nuurstei's economic feasibility, the funding is likely to be done under Hermes Fund cover. This is a German Government backed export credit agency, which has been involved in substantial financings in Mongolia. Nuurstei is majority owned by the Ekhoviin Chuluu Joint Venture (ECJV) in which Aspire holds 50%. The ASX-listed company has recently entered into an agreement with ECJV partner Noble Group to exercise its option to acquire the remaining 50% of the JV. Noble is one of Aspire's major shareholders and financiers, and the agree- ment will increase Aspire's Nuurstei interest to 90%. Noble's stake will be acquired for cash consideration of US$1 million and the grant of a royalty in respect to future production of saleable Nuurstei coking coal. The consideration can be satisfied through the issue of US$1 million in equity securities. The agreement will also result in Aspire restructuring existing debt and interest obligations. In connection with these transactions, Spectral Investments, a company associated with substantial shareholders Neil Lithgow and Bat-Erdene Khadbaasan, has agreed to convert amounts drawn down by the company under a short-term debt facility into equity. Each of these transactions is subject to Aspire completing a pro- posed capital raising and the approval of shareholders being ob- tained at a general meeting expected in July. ECJV has been notified that the Mineral Resource Authority of Mongolia (MRAM) has approved Nuurstei's registration, an import- ant procedural step in the application and issuance of a mining li- cence. It allows ECJV to lodge the General Environmental Impact Assess- ment and on acceptance, pay application and licence fees for is- suance of a mining licence. Granting of a mining licence provides tenure over a deposit for an initial 30 years with up to two additional 20-year extensions if needed. ECJV has also received a preliminary wash plant design study, which confirms the use of heavy medium separation along with spi- rals as an effective and accurate methodology for ash removal. XANADU Mines plans deeper drilling at Kharmagtai Copper-Gold Project with the aim of extending high-grade tourmaline breccia mineralisation identified in recent drilling. The discovery of additional near-surface high-grade copper-gold mineralisation will add to the existing resource and move the project into economic viability. The company believes this can be achieved by discovery of a shal- low fourth porphyry centre or adding mineralisation at depth under ex- isting resources and it has made good progress in these areas. Recent deep drilling at Kharmagtai's Altan Tolgoi deposit has con- firmed significant continuous high-grade mineralisation. One hole intersected 646 metres from 16 metres @ 0.51% copper and 0.87 g/t gold, or 1.06% copper equivalent, including 64 metres from 18 metres @ 1.06% copper and 3.15 g/t gold, or 3.08% copper equiv- alent. This represents the best intersection drilled at the project. Another hole intersected 385 metres from 351 metres @ 0.52% copper and 0.60 g/t gold, or 0.9% copper equivalent. Managing director and CEO Andrew Stewart says the minerali- sation identified within the resource shell is better than, or similar, to the current resource estimate. The high-grade breccia hosted chalcopyrite-gold mineralisation remains open at depth. He says widespread near-surface copper and gold mineralisation has been intersected in an undercover bedrock drilling program. Six potential porphyry clusters have been identified, containing 19 individual porphyry and epithermal targets. Drilling also intersected additional and substantial broad zones of near-surface gold-rich porphyry mineralisation at Altan Burged de- posit. One hole intersected 20 metres from 39 metres @ 1.73 g/t gold and 0.18% copper. At Oyut Ulaan, 260km east of Kharmagtai, diamond drilling has commenced to test the four highest ranked shallow copper-gold porphyry and epithermal gold targets. Two holes are planned to test the depth and continuity of surface mineralisation at Target 46 while trenching and drilling are planned in the area around the Bavuu Zone and Target 10. Drilling is planned at Target 4 while drilling at Hulan target will test grade continuity, depth potential and seek the causative porphyry system for the skarn body. Xanadu's total direct exploration spend in 2016 was $4.8 million with more than 70% allocated towards Kharmagtai. It also spent $A3.9 million on the reduced and last payment for the acquisition of Kharmagtai. Funding interest for coal handling plant The two primary exploration targets of Xanadu Mines in the South Gobi region. Deeper drilling planned at Kharmagtai

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