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

Үнийн санал авах

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

Shareholding:

100%

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%

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.