Khan, Western Prospector mull shared infrastructure

Vancouver — Neighbouring uranium explorers Khan Resources (KRI-T, KHRIF-O) and Western Prospector Group (WNP-V, WEPGF-O) are looking at collaborating on government-related issues and development of their Mongolian uranium projects.

A recent sit-down between management of the two companies reviewed the potential mutual benefits 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.

Khan’s Dornod deposit and Western Prospector’s Gurvanbulag deposit are situated about 40 km apart.

Dornod is a past-producing open-pit uranium mine operated by Russians from 1988-1995. A prefeasibility study recently completed by Khan put the deposit’s indicated resource at 25.3 million tonnes averaging 0.116% U3O8, for about 64.3 million contained pounds U3O8. Dornod also hosts 2.2 million inferred tonnes of 0.05% U3O8.

Within the indicated resource, probable reserves of 18.2 million tonnes of 0.122% U3O8 were delineated in the No. 2 and No. 7 deposits for about 49.1 million contained pounds U3O8.

Khan has a 58% interest in the No. 2 deposit, and a majority interest (more than 70%) in the No. 7 deposit.

Western Prospector Group’s Saddle Hills project also underwent past Russian development and contains several uranium deposits — the largest and most advanced being Gurvanbulag, with extensive underground workings.

Indicated resources at Gurvanbulag stand at 2.83 million tonnes grading 0.22% U3O8 for about 13.6 million contained pounds U3O8, plus 2.67 million inferred tonnes at 0.15% U3O8 (about 8.6 million contained pounds U3O8).

Both Khan and Western Prospector recently saw uncertainty regarding their mineral exploration licences when the Mineral and Petroleum Resources Authority of Mongolia (MPRAM) announced that some licences may be declared invalid.

Anxious not to spook foreign exploration capital, the issue was quickly clarified by the MPRAM chairman, who said that 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.