Tsagaan Chuluut

Project Description

The Tsagaan Chuluut fluorspar project is a recent addition to the company's portfolio of fluorspar projects and was not visited during CSA's site visit in October 2009. The project area is approximately 63km northeast of the Company's Dai-Uul fluorspar project and therefore has a strategic significance to the future of the Company's development strategy. CSA has assessed the technical information provided by the Company regarding the project and considers it of sufficient material significance to be covered by this report. CSA has not undertaken to verify the legal and governmental approval documentation relating to the project.

General view of the Tsagaan Chuluut project area. Waste rock piles can be seen in the in the middle ground from the trial mining conducted by the previous owner.

Project Status

The Tsagaan Chuluut property area comprises one mining license (4646A) and covers a total of 0.33km2. The mining license 4646A was originally granted on October 05, 2001 to Guchin Gol LLC as an exploration license (3744X) encompassing an area of 1033 hectares. Exploration license 3744X was subsequently reduced to 33ha and converted to mining license 4646A on July 9, 2002. Thereafter the mining license 4646A was transferred from Guchin Gol LLC to KR LLC.

Since 2002 KR LLC conducted intermittent small scale mining. Approximately 3,000t of fluorspar has been mined to date (Sheldon et al., 2009). A total of 120 tons of sorted fluorite were mined from two small open pits in 2009. Cash flow difficulties caused KR LLC to look for a partner since the beginning of 2008 (Sheldon et al., 2009).

The Mining Licence 4646A was successfully transferred to Lotus Minerals Mongolia on 30 December 2009.

Further Information

Technical report PDF (302KB)

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