THE BOURSE WHISPERER: Perth-based Mongolia-focused iron ore exploration play Haranga Resources has acquired a further 20 per cent interest in the Joint Venture company that holds the five exploration licences comprising the Selenge iron ore project.
Haranga Resources now holds an 80 per cent interest in the Selenge iron ore project in Mongolia where significant widths of iron mineralisation have been intersected at all three of the iron ore targets that have been drilled so far.
The Selenge iron ore project covers 600 square kilometres in the middle of Mongolia’s premier iron ore development region, situated approximately 200 kilometres north of Ulaanbaatar.
Source: Company announcment
A total of 36 diamond core holes have been drilled at Selenge for a total of 8,366 metres with three of the four primary targets at Selenge having been drilled.
Drilling carried out by Haranga to date has focused on the Bayantsogt prospect, although the company said at least five major iron lodes exist at Bayantsogt, each averaging approximately 20m, and up to 103m, in apparent width.
Assay results received to date include:
– 28 metres at 30 per cent iron from 3 metres;
– 17m at 28per cent iron from 50m;
– 41m at 26 per cent iron from 107m, including 10m at 42 per cent iron from 113m;
– 18m at 31 per cent iron from 65m;
– 5m at 40 per cent iron from 106m;
– 9m at 39 per cent iron from 13m, including 5m at 47 per cent iron from 14m; and
– 38m at 24 per cent iron from 68m.
“The mineralisation at Bayantsogt is primarily hosted in Banded Magnetite Skarn, similar in nature to the nearby 300 million tonne Eruu Gol deposit, which has proven amenable to low cost mining and beneficiation,” Haranga Resources said in its announcement to the ASX.
“In 2009 the China Investment Corporation (CIC) invested over US$500 million to obtain a one third interest in Eruu Gol.”
Haranga has commenced metallurgical test work on initial samples from Bayantsogt.
The company said it intends to be able to define a maiden JORC Code compliant resource for Bayantsogt by early 2012.
“Initial drilling at the larger Dund Bulag prospect has recently discovered significant widths of iron mineralisation of a similar nature to that observed at Bayantsogt,” the company said.
“Mineralised intersections from initial drilling at the Huiten Gol prospect appear to be smaller in width but of a higher iron grade than that observed at Bayantsogt.”
The company said it was still waiting to receive initial assay results from both Dund Bulag and Huiten Gol.