Orxontuul-4 Placer
Above we see the production plan that was developed by the mine operator MNO. Some 110 kg Gold will be mined in about 12 months, in two phases. A third phase may follow in late 2021.
The placer is located in a low mountain and steppe zone with a cold and dry climate in southern Selenge, in the western North Khentii mountains. Orxontuul Soum is 36 km and Ulaanbaatar is 146 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 deposited the gold elsewhere in valleys.
The placer gold of Orxontuul-4 is associated with Neogene and Quaternary riverbeds, as in the nearby Zaamar placers, which are the biggest gold placers in Mongolia. The gold is coarse (0.1 - 2mm). Fineness is 910 - 935.
Financials
We exploit the mine together with partners Bead Mining LLC and MNO LLC under a production sharing contract. MNO builds and operates the mine.
Total financial investment is USD 4.5 Million.
We valuate the placer at NPV10 USD 2.6 Million (Net Present Value discounted at 10% p.a.) and ROI 48-66% (depends on phase) at the future gold price of USD 1900.
