Lotus Dai Uul LLC

Project Description

Lotus's Dai-Uul project is located in Mongolia's southern eastern region approximately 300 km from Ulaanbaatar. The project lies within Mongolia's Dornogobi Province and covers an area of 0.83km2 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, Airag, is located some 35 km to the west of the project area and has a population of approximately 2000 people, basic facilities and accommodation. The nearest high voltage power-line and a siding of the Trans-Mongolian railway is also located at Airag. Currently access to the project area is via unsealed roads accessible all year around.

Interest in the Dai-Uul area is largely based on the systematic geological work conducted by state geological teams between 1950 and 1990, which resulted in the first detailed geological maps for the region. It was not until the discovery of the Bor-Ondor fluorspar deposit (currently the largest fluorspar mine in Mongolia) in 1956 by the State Agency, that the area was recognised for its mineral wealth and occurrences of fluorspar mineralisation. Bor-Ondor mine is located approximately 25km to the northwest of the Dai-Uul area.

View of the Dai-Uul area looking north. Waste piles from pilot mining visible on the left of the picture

Project Status

Small-scale pilot mining via trenching (which is permitted during the exploration period) has been undertaken at the project. The average daily production of fluorite mineralisation (hand-sorted) was about 4 tonnes. A total of 400t of ore was permitted to be extracted under the exploration licence agreement.

The Dai-Uul exploration license (No. 14048X) was transferred to the joint venture company called Lotus Dai-Uul LLC on 23 April 2009 in which the company initially had a 51% interest. On 12th of January 2010 Lotus Dai-Uul LLC acquired the remaining 49% in the joint venture which is now incorporated in Lotus Minerals Mongolia LLC. Lotus Minerals Mongolia LLC is currently compiling documentation required to convert the exploration licence to a mining licence.

Further Information

Technical report PDF (341KB)

You will need Adobe Acrobat Reader to view PDF documents. To download it for free please click on the logo.