Juniors eye prospects in Mongolia

Two unrelated junior companies from the eastern and western shores of Canada are heading to Mongolia to explore their newly acquired mineral properties.

Vancouver-based Western Prospector Group (WNP-V) recently inked a deal to acquire two Mongolian gold properties. The company also plans to participate in a nationwide exploration program that will examine about 30 potential acquisition targets.

Meanwhile, Halifax-based Erdene Gold (ERD-V) raised $9.8 million in its initial public offering to explore eight gold-copper properties covering 3,780 sq. km in Mongolia.

As a first step, Western Prospector will acquire the Selenge Aimag property, in north-central Mongolia, and the Arkhangai Aimag property, about 400 km west of the capital of Ulaanbaatar.

The 42-sq.-km Selenge Aimag project straddles the southeastern side of the Khenteii Graben and covers a portion of the bounding graben fault and subsidiary cross-structures.

A previous operator, in the 1990s, outlined a target defined by anomalous gold and arsenic geochemistry in soils, coincident with an induced-polarization anomaly. The first of three subsequent drill holes returned narrow, high-grade intervals within a 5.2-metre intersection averaging 16.75 grams gold per tonne. The second hole returned only anomalous values, while the third returned 8 grams over 3.7 metres, followed by a second interval of 4.3 grams over 4 metres.

The favourable horizon is believed to trend across the property for more than 2 km, based on results from geochemical and geophysical surveys. The road-accessible property is in a region known for its large-scale, placer mining operations, as well as several lode gold deposits.

The 265-sq.-km Arkhangai Aimag property, also road-accessible, covers at least six separate discrete geochemical anomalies identified by Mongolian and Russian Geological survey teams. Two of the largest anomalies are anomalous in gold; the others, in copper, zinc, bismuth, mercury, tin and molybdenum.

The Mongolian Geological Survey has identified several gold and polymetallic deposits near Arkhangai Aimag.

Western Prospector Group intends to submit both properties to geochemical and geophysical surveys and mapping in preparation for diamond drilling. The junior will acquire the Mongolian properties by funding exploration and issuing shares to the vendor, and says it may seek joint-venture participation on selected properties in the country.

For its part, Erdene Gold will initially explore the Virgin property, in Mongolia’s southeastern region, about 100 km east of the Trans-Mongolian Railway.

Previous exploration there focused on a 72-sq.-km area referred to as the Temuujin district, resulting in the discovery of multiple porphyry-related gold and copper occurrences.

Erdene plans to start drilling in the Temuujin district in May. Drilling is also planned for three gold prospects in central and southwestern Mongolia.

The company has 25.5 million shares issued and outstanding (28.4 million fully diluted) and $13.1 million in cash.