A property-wide sampling program at Mongolia Gold Resources’ (MGR-V) 49%-owned Bumbat Gold Field property in Mongolia has identified an open-ended gold-in-soil anomaly measuring 1,700 metres long by 200 metres wide.
Known as Naimgan, the anomaly was defined by 228 samples averaging 4.25 grams gold per tonne, with values of up to 62.5 grams. It covers a northwest-striking ridge and its southwest slope, and extends northwest from an area of gold-bearing quartz stockwork mineralization.
Additional sampling, 500 metres to the northeast, returned abundant anomalous gold values, according to the company, and these may indicate an extension of the anomaly.
Mongolia Gold will follow up the discovery with more than 5,000 metres of mechanized trenching. A 2,000-metre-long trench will be dug along the ridge, with cross trenches dug every 200 metres.
The geochemistry of the anomaly suggests the mineralization is different from the gold-bearing quartz veins being prepared for mining.
The company is constructing a 300-tonne-per-day gravity and flotation concentrator on site. Startup is anticipated for April, with production for the current year forecast at 25,000 oz.
A feasibility study projected cash costs of US$121 per oz., and production will initially come from open-pit, narrow-vein mining.
Drill-indicated reserves hosted by veins 118 and 56 were last estimated at 492,312 tonnes grading 11.64 grams. A possible resource contained in veins 118, 56 and 115 is estimated at 1.5 million tonnes grading 9 grams. The average stripping ratio is estimated at 8.9-to-1.
The 4-by-6-km project is in the Zaamar region of north-central Mongolia, 210 km northwest of the capital city of Ulaanbaatar. Underlying the property are parallel and subparallel, steeply dipping quartz veins cutting lower Palezoic sediments, or schists. More than 200 quartz veins have been identified.
Mongol Alt, a privately owned company appointed by the Mongolian government, holds the remaining 51% interest in the property.
Mongolia Gold has 19.5 million shares outstanding, or 27.1 million fully diluted.
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