Vancouver – Neighbouring uranium explorers Khan Resources (KRI-T, KHRIF-O) and Western Prospector Group (WNP-V) have come to the realization a collaborative effort on government-related issues and planned development of both its Mongolian uranium projects could be mutually beneficial.
A recent management sit-down between the two companies reviewed potential economic pluses of shared infrastructure at the Saddle Hills uranium camp in northeastern Mongolia. An engineering firm engaged by the pair is evaluating viability of shared production infrastructure and facilities.
Khans Dornod deposit and Western Prospectors Gurvanbulag deposit are situated about 40 km apart.
Dornod is a past producing open pit uranium mine operated by the Russians from 1988-1995. A pre-feasibility study recently completed by Khan reviews an indicated resource of 25.3 million tonnes averaging 0.116% U3O8, for about 64.3 million contained lbs. U3O8. A further 2.2 million inferred tonnes of 0.05% U3O8 was also tabled.
Within the indicated resource, probable reserves of 18.2 million tonnes of 0.122% U3O8 are delineated in the No. 2 and No. 7 deposits for about 49.1 million contained lbs. U3O8.
Khan has a 58% joint venture interest in the No. 2 deposit, 58% of a two-thirds interest in the No. 7 deposit, and a 100% interest in the remaining third.
Western Prospector Groups wholly-owned Saddle Hills project also underwent past Russian development and contains several uranium deposits, the largest and most advanced being Gurvanbulag with extensive underground development.
Indicated resources of 2.83 million tonnes grading 0.22% U3O8 are reviewed at Gurvanbulag for about 13.6 million contained lbs. U3O8 plus an additional 2.67 million inferred tonnes at 0.15% U3O8 (about 8.6 million contained lbs. U3O8).
Khan and Western Prospector both recently underwent mineral exploration licence uncertainty following statements from the Mineral and Petroleum Resources Authority of Mongolia (MPRAM) that some licences may be declared invalid.
Anxious not to spook foreign exploration capital, the issue was quickly clarified by the MPRAM chairman stating no exploration licences had been invalidated but those covering projects ready for development would need to be converted to exploitation, pre-exploitation or production licences.
Both Khan and Western Prospector are moving to conform to the edict and convert all affected special exploration licences to mining licences.
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