Having to build power plant may delay OT production

Having to build power plant may delay OT production

Ivanhoe Mines has warned that if a deal to import power from China for the Oyu Tolgoi mine falls through, the company may have to construct a coal-fired power plant ahead of schedule. That would delay commercial production and add to the initial costs of building the mine. “Although construction of a power plant is expected as part of the project’s future development, there is no provision for a plant in the current capital cost estimates for 2011 and 2012 and the financing that would be required is not contemplated as part of the company’s current financing plan,” Ivanhoe said in a statement.
Ivanhoe has held talks with the Mongolian and Chinese governments regarding securing the power from China by the third quarter of next year. However, if that is not possible, a study of alternative arrangements has found that advancing the construction of the coal-fired power plant in Mongolia would be the best option.

Erdene closes $1,715,000 private placement through MICC

Erdene Resource Development Corp. closed $1,715,000 of a private placement announced on November 16 and issued 4,287,500 shares at $0.40 per share. The offering was led by Mongolian International Capital Corporation (MICC). “We are tremendously pleased to receive the support of Mongolian shareholders, providing them with an opportunity to share in the excitement of what we believe is a significant new gold discovery at Altan Nar,” said Peter Akerley, President and CEO.
 “Since the discovery of Oyu Tolgoi by Ivanhoe Mines, Mongolians have been eager to participate and share in the risks and rewards through investment in the mineral exploration sector,” said Achit Erdene Darambazar, President and CEO of MICC, the oldest and leading full service investment bank in Mongolia. Net proceeds of the placement will be used for exploration of the company’s projects in Mongolia and working capital. Exploration expenditures will primarily be directed to the Altan Nar epithermal gold project.

MAK and Winsway in strategic alliance

Winsway Coking Coal Holdings and Mongolyn Alt (MAK) have entered into a ten-year strategic alliance under which MAK will supply a minimum of 3 million tonnes per year of high-quality coal to Winsway with scope to increase the volume as may be agreed by the parties. The purchase price will be mutually agreed upon on a quarterly basis with consideration given to the market price in China. Winsway will provide comprehensive logistical services to MAK.

Erdene starts drilling at Altan Nar 

Erdene Resource Development Corp. has announced commencement of a 3,000-metre drill programme at its 100% owned Altan Nar property. The programme will test multiple targets over 1 km of strike length extending north and south from the original discovery which returned significant, near surface epithermal-style gold, silver and base metal mineralization. The programme will be concentrated on the central portion of a target area measuring 3 km by 2 km and containing multiple prospects defined by geochemistry and geophysics.
The 3,000-metre diamond drill programme, consisting of approximately 18 holes, is expected to be completed before the end of December 2011. 

Xanadu to kick off drilling at Javkhalant 

Xanadu Mines’ much anticipated exploration drilling at the highly prospective Javkhlant metallurgical coal project is part of the company’s strategic alliance with Noble Group, Asia’s largest diversified commodities trading company. Javkhlant (JV earning up to 80%, Xanadu earning 40%) has the potential to host a large premium coking and /or thermal coal deposit. The project is only 200 km from the Chinese rail network at Hami and reconnaissance exploration has identified numerous coal subcrops over a strike of about 40 km.
Xanadu chairman Brian Thornton has said the drilling program will run right through the winter, with results released progressively over the next three months. Under the terms of the agreement, the joint venture vehicle Ekhgoviin Chuluu LLC (EC) can earn up to 80% of the Javkhlant coal exploration licence by meeting various spending commitments over 2 years, including completion of a JORC Resource. EC has contracted a reverse circulation drill rig to conduct a scout drill programme of up to 4,000 metres at Javkhlant to test the numerous coal subcrops.

Haranga Resources intersects more iron mineralisation at Selenge Project

Haranga Resources has intersected further extensions to the iron mineralisation at the Bayantsogt prospect, within its Selenge Project in Mongolia, where four diamond rigs continue to drill. A total of 24 of the 26 diamond drill holes at Bayantsogt have intersected significant widths of iron mineralisation. The company has also discovered significant widths of iron mineralisation at the nearby and larger Dund Bulag prospect.
These results are in addition to the previously reported intervals from Holes 1 to 7 that included 26 metres at 27% iron from 32 metres. At least five major iron lodes exist at Bayantsogt averaging about 20 metres, and up to 103 metres, in width. Initial drilling at the larger Dund Bulag prospect has discovered significant widths of banded magnetite of a similar nature to Bayantsogt, with assays pending. The company has commenced metallurgical test work on samples from Bayantsogt.