The Mineral Resources Authority has accepted for registration, after review and approval by a number of experts, the high grade gold resource at the Toordogiin Shil Prospect on the Gutain Davaa Project of Meritus Minerals Ltd. Under the Mongolian system, the resource is classified as a B+C Resource of 3.17415 tonnes of gold at an average grade of 5.73gAu/t. Because of the methodology, this is not compliant with NI 43-101 or JORC Code reporting standards. In conventionally used language, the resource works out to approximately 550,000 tonnes grading 5.73gAu/t for 102,000 ounces of contained gold. The resource has been assessed on the basis that it only includes mineralization that could be available for underground mining.
An Environmental Impact Assessment has been completed and presented to the Ministry of Nature, Environment, and Tourism and the local Soum administration for their evaluation. Another activity of significance has been the extensive repairs carried out to the only bridge in this district across the Onon River to allow better access to the site. The project and its potential benefits are being explained to the local community and talks are on with the local authorities on identifying the best methods to benefit and involve the local community in the project. Preliminary discussions with the Mineral Resource Authority of Mongolia are under way with the objective of entering into a pre-mining agreement.