Lotus Amgalan

Project Description

Lotus's Chuluut project is located in Mongolia's south eastern region approximately 465 km from Ulaanbaatar and about 60km from the provincial capital city of Sainshand.  The project lies within Mongolia's Dornogobi Province and covers an area of 0.35km2 in gently undulating terrain on the northern periphery of the Gobi desert. This region forms part of the Gobi high plain located at an altitude of 1000 and 1100m ASL.

The region is sparsely populated with moderate to well developed infrastructure. The nearest town, Sainshand, is located some 60 km to the northwest of the project area and has a population of approximately 22,000 people, well developed facilities and accommodation. The nearest high voltage power-line and a siding of the Trans-Mongolian railway is also located at Orgon, a small village about 3km east from the project area. It has basic infrastructure. Currently access to the project area is via unsealed roads accessible all year around.

View of the Chuluut licence area looking south. Waste piles from the nearby mining

Project Status

Following successful negotiations, Lotus Mongolia Minerals LLC (the Mongolian registered company of Lotus Resources Plc) and Amgulan LLC formed a joint venture (JV) company called Lotus Amgulan LLC on 10 June 2009. Amgulan LLC is a Mongolian registered company owned by Mr. I. Dashravdan, a former member of the Choyr Geological Team that was involved in the discovery and development of the Orgon fluorspar district.  Lotus is the majority shareholder in the joint venture company with a 51% interest. On 15 June 2009, the application to transfer the mining licence to the JV Company was lodged and successfully completed on 30 June.

Amgulan LLC conducted and submitted a resource estimation for Chuluut using historic data to the State Resource Committee which facilitated the conversion of the exploration licence to a mining licence. Two Mongolian consulting groups have been engaged to conduct the environmental impact assessment studies and the mining plan, respectively. The target completion date for this work is December 2009. In addition, other permitting requirements (e.g., blasting, pilot mining, etc.) are being prepared for the purpose of approval of mining.

Further Information

Technical report PDF (868KB)

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