Nariin Gol West Placer
Above we see a preliminary production plan for some 86 kg (83 kg pure) placer gold to be mined in about 12 months in a first phase. However, it is estimated that the placer may ultimately hold 500-700 kg gold.
The Nariin Gol placers are located in a low mountain and steppe zone with a cold and dry climate in Tov/Bulgan, in the southwestern foothills of the Zaamar gold belt of the western North Khentii mountains. Zaamar Soum is 35 km and Ulaanbaatar is 195 km away as the crow flies.
Geologically the mine is located in the Lower-Middle Jurassic Orkhon-Selenge basin, on the Siberian tectonic plate which is bordered by the Mongolia-Okhotsk suture line in the South. This tectonic line marks the northward subduction and closure of the Mongol-Okhotsk ocean under the Siberian plate in the Middle Jurassic - Lower Cretaceous. The subduction caused the rise of the Andean-type Khentii mountains with the emplacement of widespread gold veins related to granite intrusions. Tectonics brought gold veins towards the surface, where they were exposed to the action of erosion and rivers and streams deposited the gold elsewhere in valleys.
The placer gold of Nariin Gol is associated with Neogene and Quaternary colluvium in a side valley of the Tuul River, and belongs to the Zaamar placers, which form the biggest gold placer area in Mongolia. The gold is coarse (0.1 - 2mm) to very coarse (>2mm). Fineness is 960. A swarm of gold bearing veins with 16.4 tonnes gold has been found in the mountains on all sides of the placer. Further gold mining is in progress in the neighbouring block MV-6364 of Nariin Gol Gold Company.
Financials
This placer is very interesting because of the high density of abundant high-grade gold veins in the mountains around. We plan to exploit the gold placer together with partners Nariin Gol Gold Company LLC and MNO LLC under a production sharing contract. MNO will build and operate the mine.
Total financial investment is USD 3.5 Million.
We valuate the placer at NPV10 USD 1.4 Million (Net Present Value discounted at 10% p.a.) and ROI 41% at the future gold price of USD 1900.
