KHALZAN BUREGTEI PROJECT
NEW SOURCE OF HEAVY RARE EARTHS FOR THE WORLD
Khalzan Buregtei REE (the “KB”) is a mineral deposit in western Mongolia that contains a group of elements known as the rare-earth elements (REE) and is notable for its extremely rich in dysprosium. Khalzan Buregtei is categorized as a peralkaline granite REE deposit. Although there are several other REE deposit of this type around the world, there is only one operating rare-earth mine in a peralkaline granite, a Lovo-zero in Russia
The KB deposit lies in the far west of Mongolia, in the Myangad District of Khovd province.
It is approximately 1,600 km west of the national capital, Ulaanbaatar, 60 km northeast of the provincial capital city of Khovd, and 20 km north of Myangad soum, a town that lies on the banks of the Khovd River where it flows into Khar-Us Lake.
Exploration carried out by MNREC between 2011 and 2013 involved rock chip sampling, mapping and diamond drilling
• 172 rock chip/grab samples were collected.
• Field mapping was conducted to a scale of 1:2,000 and topographic survey was conducted. Three phases of drilling have been carried out on the project to date and a total of 41 holes for 11,200m have been completed.
• Downhole surveys of the drill holes were carried out during the drilling program. Drill holes were surveyed downhole at 30m intervals.
• The recovery of the drill core sample averaged 98% for the entire dataset.
• Based on drilling results, Micromine Consulting Services produced JORC compliant resource statement of KB Project in January 2014.
KHALZAN BUREGTEI DEPOSIT
• The single most valuable metal at Khalzan Burgetei is dysprosium (Dy), followed by neodymium (Nd). Although the four of the rare earths account for more than half of the recoverable value, niobium (Nb) and tantalum (Ta) also have significant value
• Some REE deposits also have significant Nb and Ta grades and use processes that recover these as by-products
HIGH GRADE ZONE ESTIMATED RESOUCE
HIGH GRADE ZONE
PEA MINERAL RESOURCE ESTIMATE
The KB deposit is ideal for open-pit mining. One of the remarkable features of the KB deposit is that it is zoned in exactly way that cooperates with the optimal sequence of open-pit mining, with a high-grade material at the top of the ridge material being mined first and the low-grade material on the surrounding plains being mined last, as shown above.
The process tests show that magnetic separation will be able to concentrate 95% of the REEs in 54% of the mass, and that flotation will be able to concentrate 75% of the REEs in 7.5% of the mass. The final REO concentrate that is produced by the combination of magnetic separation followed by flotation will have 74% of the REEs in 4% of the original mass; flotation concentrate will have REE grades approximately 18x those of the ROM material.