TSENGEL Placer gold deposit project

Bayan Ulgii province, Tsengel soum, 1870 km NW Ulanbatar, 55 km W Ulgii, the center of Bayan-Ulgii province, 10 km NE Tsengel soum

TSENGEL Placer gold deposit project

Bayan Ulgii province, Tsengel soum, 1870 km NW Ulanbatar, 55 km W Ulgii, the center of Bayan-Ulgii province, 10 km NE Tsengel soum

Дэлгэрэнгүй тайлбарDetailed information詳細情報

General information

Location

Bayan Ulgii province, Tsengel soum, 1870 km NW Ulanbatar, 55 km W Ulgii, the center of Bayan-Ulgii province, 10 km NE Tsengel soum

Project

Tsengel gold hard rock deposit project

License

Mining МҮ-021083

License validity

2018.06.05 - 2048.06.05

License area

2003.63 hectares

License holder

SG Group LLC

Resources

Mineral Resources & Petroleum Authority of Mongolia (MRPAM) approved the results of exploration works, registered gold resources and issued a mining license:

Resources & Reserves

Category

Grade (g/t)

Au (t)

Approved

B+C

10.79 1,024.62 kg

Potential (SRK Consulting MGL*)

P

5-15

10

*SRK Consulting MGL has conducted geological auditing and released independent technical  report. Currently provides SG Group its advisory services in exploration and mining.

Exploration & Study

SG Group LLC has conducted detailed exploration drilling and survey since 2017:

Drilling: Drilling of total 4290 meters on the area of the West mineralization zone

Sample testing: SGS-IMME Mongolia LLC

Metallurgical testing: Central Geological Laboratory, Yantai Oriental Mine Design & Research Institute:

  • Gravitation metal recovery - 90.44%
  • Leaching metal recovery - 98.34%

Exploration & Survey

Project Development

  • The Feasibility Study of the project was approved by MRPAM in August 2019. SG Group develops Tsengel’s mining plan to start in 2020.
  • SG Group started incline shaft sinking to conduct underground exploration in 2019. The total shaft sinking has reached approx. 400 m in length as of 23.12.2019.
  • The beneficiation plant with capacity of 500 t/day is under construction, the commissionning is planned within the 1st quarter of 2020.
  • The project consultant SRK Consulting MGL is working on development of program for exploration potential and overall development of the project:
    • 4660 m drilling is proposed for the initial stage of additional exploration program for 2020. In 2020 SG Group targets to complete additional exploration and estimate resources in compliance with JORC code.

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