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Monday, March 5, 2012

[CPSI NewsWire: SouthGobi to Sell its Thermal Coal Tsagaan Tolgoi Deposit for US$30m to Modun]

CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks. Follow CPSI NewsWire on Twitter, Facebook

 

SouthGobi announces agreement to sell its thermal coal Tsagaan Tolgoi Deposit for US$30 million (to Modun Resources)

HONG KONG, March 5 – SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) announced today an agreement to sell its thermal coal property, the Tsagaan Tolgoi Deposit to Modun Resources Limited (ASX: MOU) ("Modun").

SouthGobi intends to facilitate the sale of Tsagaan Tolgoi through the transfer of a wholly-owned subsidiary holding one mining license (15041A) and one exploration license (7262X) pertaining to that deposit.

Under the transaction, SouthGobi expects to receive US$30 million of total consideration, comprising US$7.5 million up-front in cash, US$12.5 million up-front in Modun shares and deferred consideration of an additional US$10.0 million also payable in Modun shares. As a result, SouthGobi will have a significant shareholding in Modun and it will have the right to nominate one director to the board of Modun subject to SouthGobi holding an equity interest in excess of 14.9%. The transaction is subject to certain terms and conditions and is expected to be completed by June 1, 2012.

SouthGobi believes this transaction is positive for three key reasons:

(i)            Tsagaan Tolgoi Deposit has become non-core due to the location being approximately 400 kilometres to the east of the Company's core coking coal resources;

(ii)           Modun has agreed to accelerate the development of Tsagaan Tolgoi into a mining operation, which will create employment and further the development of Mongolia; and

(iii)          SouthGobi will, through its significant shareholding in Modun, continue to have exposure to Tsagaan Tolgoi and will also gain exposure to Modun's other attractive projects in Mongolia.

"This sale will allow SouthGobi to focus on further developing our Ovoot Khural basin holdings, including our flagship Ovoot Tolgoi Complex and the nearby Soumber Deposit, while retaining an indirect exposure to Tsagaan Tolgoi through our shareholding in Modun," said Alexander Molyneux, President and CEO. "We also believe that Modun is well placed to be able to bring Tsagaan Tolgoi into production in a timely manner."

Macquarie Capital (Hong Kong) Limited acted as SouthGobi's financial adviser on the transaction.

Link to release

SouthGobi Resources Ltd. to announce Fourth Quarter and Fiscal 2011 financial results on 19 March 2012SouthGobi, March 2

 

Pending an expected announcement on March 6 regarding transaction (above) and equity raising

Modun: REQUEST FOR VOLUNTARY SUSPENSION

March 5, Modun Resources Limited (ASX:MOU) --

Link to release

 

AMO closed -18.1% to 47.5c on low volume

Altan Rio Announces Chandman Copper-Gold Project 2011 Drill Results and 2012 Exploration Plans

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2012) - Altan Rio Minerals Limited (TSX VENTURE:AMO) ("Altan Rio" or the"Company") has received preliminary assay results from the 2011 drill campaign at the KY porphyry intrusion and adjacent targets at the Chandman copper-gold Project ("Chandman"), part of the combined Chandman-Yol regional exploration Project (100%) ("Chandman-Yol"), located in Khovd Aimag, western Mongolia.

These new holes encompassed a wide-spaced reconnaissance drilling program targeting several broad zones of copper-gold geochemical anomalies and deeper IP chargeability anomalies over an area of 4.5 x 2.5 km. Drilling comprised 13 holes for 7,814 m.

HIGHLIGHTS

·         Drilling shows that the KY porphyry intrusion is a zoned metal system, with strong molybdenum anomalies (100 ppm) in the northwestern sector, high grade gold (28 g/t) in the northeastern sector, and unusually high silver (100+ g/t), lead (>10,000 ppm) and zinc (>10,000 ppm) grades in the southeastern sector. Elevated copper occurs throughout

·         All holes drilled into the KY porphyry intrusion intersected elevated metal values, with frequent 0.5% copper and 0.5 g/t gold from 1 to 3 m core samples, in quartz-sericite-sulfide alteration of variable intensity. Drill-indicated mineralization spans an area of 2.8 x 2 km

·         Highest grade gold intersection achieved to date in drill hole CH-27, which returned 1 m at 28.02 g/t gold at a depth of 206 m in the KY porphyry intrusive complex with visible gold in xenoliths of the deeper, early stage intrusive 

·         Longest intersection of copper mineralization achieved in CH-18, which returned 105.6 m (from 42.9 to 148.5 m) at 0.12% copper from an IP anomaly in the Khuush zone

·         Five of the drill holes were aimed at deep large and high-amplitude IP features in the KY porphyry intrusion and assay results show that metals including gold and copper are generally increasing with depth. However only one of the holes reached target depth, which means the IP features essentially remain untested. The deep IP targets were essentially upgraded with the 2011 drill results

·         Significantly, CH-28 in the southeastern endoskarn area returned the following silver intersections:

·         13.2 m (97.0 to 110.2 m) @ 43.12 g/t
including 1 m @ 106.31 g/t and 1 m @ 118.86 g/t

·         39.6 m (185.0 to 224.6 m) @ 24.57 g/t
including 2.5 m @ 128.3 g/t and 2.2 m @ 114.26 g/t

Other silver, lead and zinc grades are being checked to determine over-limit values and will be fully reported when verified.

NEW TARGETS & 2012 EXPLORATION PLANS

The 2011 exploration season produced several new, near surface drill targets from a combination of geological mapping, large geochemical survey grids and reconnaissance IP profiles. New targets include:

Ovoot - The high amplitude IP anomaly (35+ msec) at the Ovoot target, the strongest identified on the Chandman Project to date, is an exciting target with substantial dimensions of 2+ km long, 1 km wide, and possibly 500-800 m thickness. While the anomaly is largely concealed by a low angle fault, weak copper staining in vertical fractures is visible above the anomaly. The anomaly is approximately 4 km north of the KY porphyry intrusion, and may be structurally connected with it. The zone has never been drilled and is a compelling target for potentially very large tonnage resources, with testing planned in 2012.

Takhilt - A new outcropping copper-gold porphyry biotite granite intrusion with disseminated copper oxide staining named Takhilt was discovered in the northern Yol licenses about 15 km north of the KY copper-gold porphyry intrusive complex. Follow-up soil geochemical and geophysical surveys delineated a robust copper soil anomaly about 600 m in diameter, with a moderate to high amplitude IP chargeability feature at depth. Rock chip sampling locally showed up to 30 g/t gold assays and 1%+ copper assays. The zone, which has never been drilled, is a compelling target for shallow resources and will be a priority target in 2012.

KY Porphyry Intrusion - The KY porphyry intrusion is under-explored and contains multiple large tonnage copper-gold target zones. The 2011 drilling campaign shows that strong alteration with highly anomalous geochemistry occurs above deeper, high-amplitude IP targets that remain to be drill tested. This is planned for 2012 (see Figure 4).

Khuush Zone - Long runs of low grade copper mineralization shows that Khuush has significant tonnage potential. The zone is open in all directions and warrants further follow-up exploration and targeted drilling to identify higher grades.

For complete drill results, location maps, cross sections and core photographs, please visit the Company's website at www.altanrio.com.

Stewart Group (part of ALS) prepared the drill-core samples, produced the sample pulps and performed all copper, silver and gold assays pertaining to the drill-core samples highlighted in the text and table above. Gold was analyzed by fire assay. Copper and silver were analyzed using aqua regia digestion and ICP measurement. The Company maintains a QA-QC program regarding the preparation, shipping, and checking of all samples, including the use of certified standard reference materials, blanks, as well as field and pulp duplicates.

Ownership Update

Altan Rio is pleased to report that the Company has now assumed 100% ownership of the 9 Chandman-Yol tenements subject to a 2.5% Net Smelter Royalty on the 5 Chandman tenements.

About Altan Rio

Altan Rio, founded in 2007, is based in Vancouver BC, Canada. The company explores large-scale gold and copper projects in one of the world's most prospective mineral regions: Mongolia. The Company's license holdings in Mongolia, which total more than 153,310 hectares (378,873 acres), contain significant zones of newly identified primary gold and copper mineralization across a very large area of unexplored ground.

Link to release

 

Haranga Resources Annual Report, 31 December 2011

March 2, Haranga Resources Limited (ASX:HAR) --

Link to report

 

Saijrakh to Focus on Khan Investment Management

Ulaanbaatar, Mongolia (PRWEB) March 05, 2012

Narantuguldur Saijrakh recently resigned from his role as General Manager of Asia Pacific Securities, the brokerage and dealing arm of Asia Pacific Investment Partners, to focus on his role as Director of Khan Investment Management, investment advisor to the Khan Mongolia Equity Fund - the first open-ended investment vehicle with monthly dealing that invests in Mongolia related equities listed both domestically and internationally.

Mr. Saijrakh will manage Khan's new representative office in Ulaanbaatar, Mongolia and continue to provide strategic investment advice to the Khan Mongolia Equity Fund.

"Narantuguldur will add tremendous value to Khan. He has extensive experience transacting on the Mongolian Stock Exchange including considerable experience in block trading in an illiquid market and valuing domestic listed companies," stated Travis Hamilton, Managing Director of Khan Investment Management.

Mr. Saijrakh, a Mongolian national based in Ulaanbaatar, is a certified capital markets professional registered with and regulated by the Financial Regulatory Commission of Mongolia and is a licensed trader on the Mongolian Stock Exchange. Prior to Asia Pacific Securities, Mr. Saijrakh worked in the corporate finance division of Frontier Securities, a premier investment bank in Mongolia. Mr. Saijrakh earned a Bachelor's degree in Business Administration and a minor in Economics from American University of Bulgaria. In addition, Mr. Saijrakh completed three months training on Mongolian capital market development organized by the London Stock Exchange Group Academy in London.

Khan Investment Management is attending the 2012 Mongolia Economic Forum in Ulaanbaatar on March 5th as well as the IPO Mongolia conference on March 7th, before Travis Hamilton returns to Singapore to speak on the Mongolia mining sector investments panel at the Asia Mining Congress on March 29th.

Khan Investment Management is a Cayman based asset manager specializing in providing global investors with access to a wide range of investment opportunities in fast growing Mongolia.

For further information please contact Narantuguldur Saijrakh, Director: 
narantuguldur.saijrakh@khan-management.com
Telephone: +65 6233 6924

Link to release

 

CPS Securities was/is lead manager to VOR, HAR, EUM IPOs

Go Mongolia

March 5 (The Australian) --

SAM Spring at Ocean Equities believes Mongolia is one of the last regions where a junior can add a lot of value quickly and discover large-scale deposits. He has identified his three best plays, one Canadian and two Australian. He'll be covering Voyager Resources (VOR) in a forthcoming note, but likes Haranga Resources (HAR) for being the only listed pure iron play exposed to Mongolia.

Ocean Equities sees the Bayantsogt deposit being converted within six months to a JORC resource of about 40 million tonnes while its Dund Bulag deposit has the potential to be the largest in its region. Spring argues Mongolia's sovereign risk status is improving.

Meanwhile, Foster Stockbroking has maintained its "buy" on Voyager based on what its terms impressive copper-silver hits in Mongolia.

This morning, too, we might get confirmation from Eumeralla Resources (EUM) that it has closed its $3.5m IPO and will meet its listing target this coming Friday. It is hunting tungsten in Mongolia.

Link to article

 

GUILDFORD EXCEEDS 2 BILLION TONNE JORC COAL RESOURCE MILESTONE

March 5, Guildford Coal Limited (ASX:GUF) --

MAIDEN RESOURCE ON WHITE MOUNTAIN PROJECT AT HUGHENDEN OF 262MT

Ø  Key milestone for White  Mountains Project  in northern Galilee Basin with maiden independently prepared  JORC  Inferred Resource for EPC1260 and EPC1250 of 262Mt of thermal coal

Ø  Importantly, the resource includes coal that could be amenable to open cut mining methods. Further drilling will  continue up dip towards the interpreted sub crop of the Betts Creek Beds Coal Seams to expand the potential open cut resource

Ø  Pre-feasibility study has been commissioned for White Mountains Project with a Mining Lease Application to be lodged mid-2012. Studies in support of IAS and EIS have commenced

SIGNIFICANT INCREASE (+56%) IN JORC INFERRED RESOURCE BY 583MT TAKING THE TOTAL HUGHENDEN THERMAL PROJECT RESOURCE TO 1.619BT

Ø  Increase of JORC Inferred Resource at Hughenden Project on EPC1477/EPC1478 to  1.619  Bt of thermal coal  (up  56%  from 1.036Bt) primarily within nine seams (AU to F) in the Permian Betts Creek Beds at depths suitable for underground mining

TOTAL JORC COAL RESOURCE ON PROJECTS MANAGED BY GUILDFORD INCREASED BY 63% TO 2.172BT

Ø  The resource profile for projects managed by Guildford  increases to 2.172Bt (up from 1.32Bt) of JORC resource# consisting of:

o    1.619Bt thermal coal in Hughenden Project Queensland (up from 1.036Bt)

o    262Mt thermal coal in White Mountains Project Queensland (maiden resource)

o    291.8Mt coking and thermal coal in South Gobi and Middle Gobi Projects Mongolia

ON TRACK FOR PRODUCTION MID 2012 IN MONGOLIA

Ø  Guildford's Mongolian Subsidiary - Terra Energy has been granted the first Mining Licence for the  South Gobi Project and is on target to commence mining by mid 2012

Link to release

 

MPs suggests expand land privatization timetable

March 2 (news.mn) MPs D.Gankhuyag, Z.Enkhbold, S.Erdene, D.Odkhuu, N.Batbayar, Kh.Battulga and G.Bayarsaikhan initiated law on expand timetable of land privatization to citizens. The Parliament approved Law on Land privatization in 2003. Current law will be effective till May 1, 2013 but only 10 percent of citizens officially privatized their land. By the law every citizen could privatise 0.07 ga (Mogi: it's actually 0.7 ha, not 0.07) land for free.

MPs suggested to expand timetable for another 5 years until May 1, 2018. 

Link to article

 

1000 km road to built from Altanbulag to Zamyn-Uud

March 2 (news.mn) The Ministry of Transport, Construction and City Planning has plan to built 1000 km road from north port Altanbulag to south port Zamyn-Uud. Every 150-200 km will be Relax complex for drivers and passengers. Relax complex include shop, restaurant, medical service, car repairement center and hotel. This road will play important role for transport development increase number of transit transportation.

Link to article

 

Special (Parliament) session to be held on Monday

March 2 (news.mn) By the resolution Parliament Speaker D.Demberel scheduled special session of Parliament from March 5 to 9. Special session will commence at 11 am on March 5, in accordance of the Speaker's schedule. It will discuss revising of 2012 state budget, in priority. The Government has submitted revision of 2012 state budget relating to increase salary of state official and pension from February 1 but Parliament has not discussed final version of the revision yet while MPs should ratify revision at autumn session. 

Parliament will also discuss draft laws on local elections that have been submitted by Z.Enkhbold and D.Lundeejantsan that two competing drafts, one that would have local elections held the same day as the parliamentary election, and one that would have local and parliamentary elections held separately.

Besides, MPs will discuss final versions of draft laws on courts, on rules for judges, and on rules for lawyers that have been submitted by President Ts.Elbegdorj.

Link to article

 

LIST OF LICENSED FREIGHT FORWARDING ENTITIES

March 2 (InfoMongolia.com) --

Link to article

 

World Vision, Mercy Corps, CHF, Asia Foundation are among NGOs warned of close down over failure to submit 2011 reports

March 2 (InfoMOngolia.com) --

Link to article

 

The Report: Mongolia 2012 "Mongolia is open for business"

March 2 (UB Post) On Thursday March 1, "The Report: Mongolia 2012" was launched at the Blue Sky Hotel and Tower, the first in depth and informative analysis report made by the Oxford Business Group, a global publishing and consultancy company which currently publishes up-to-date business and economic reports in more than 30 countries. The report contains comprehensive, concise, first-hand information on Mongolia's most important sectors today: energy, tourism, economy, banking, mining, construction, and telecommunications. 

The annual reports are an excellent source of information, and have a large audience ranging from politicians, universities, and people from the diplomatic world. It is an especially useful source of intelligence for businessmen and investors. 

Mongolian Prime Minister S. Batbold, who was present at the launch ceremony for a keynote address, briefly introduced the current focus of the Government and added, "I would like to express my gratitude on behalf of the Mongolian Government and businessmen to the Oxford Business Group for publishing a very informative report on Mongolia's economic status and opportunities during this time of economic growth. I believe the Mongolia 2012 report will contribute to Mongolia's economic recognition worldwide by providing solid and real information to foreign investors and businessmen."

At the launch ceremony, Paulius Kuncinas, Regional Editor of The Oxford Business Group, expressed his appreciation to a number of key people who were instrumental in completing the report, including Mongolian Prime Minister S. Batbold, who had given an interview in the report about challenges and opportunities in the Mongolian economy, "OBG spends a great deal of time and investment in this report. We had a team of six people who are based here for 8 months to produce this 250 page report, making this the most comprehensive and accurate study currently available in the English language," said Kuncinas during his presentation. 

"The main message that you will read in this report is that Mongolia is open for business." Noting the attractive investment returns in Mongolia's growing market.

The second key message he presented was that it is not all about mineral resources. Mongolian agricultural and food processing sectors will be as important as mining in the next 10 years, with potential exports of meat, wheat and potatoes. Additionally, Mongolia can become a significant exporter of wool and cashmere. 

He added that tourism is a "low-hanging fruit" in Mongolia, saying that international investors and shareholders believe Mongolia is known for its vast and remote landscapes.  Without much investment in branding, Mongolia can build on its international recognition to attract tourists. 

He also noted a few difficulties Mongolia may face in its economic progress. 

"We are acutely aware of risks," he says, "large in-flows of foreign capital from the mining sector are already putting pressure on domestic prices. Procyclical fiscal policies have added a strain on managing macroeconomic imbalances." He said. 

"Mongolian funding needs are formidable – estimated anywhere between 45 – 60 billion dollars over the next 5 – 10 years," he continued. "Transport and infrastructure will require a key strategic approach, and well established rules and legislation to attract long term investors."

Link to article

 

MPP'S MEMBERSHIP GROWING

Ulaanbaatar, Mongolia, March 1 /MONTSAME/ One thousand 921 people have become members of the Mongolia People's Party (MPP).

It took place on occasion of the 91st anniversary of the MPP and the Day of Patriots on Thursday.

Now the party has 220 thousand members. Present at the ceremony were S.Batbold PM and chairman of the party; L.Oyun-Erdene, the president of the Social Democracy Union of Mongolian Youths; and other officials of the MPP.

S.Batbold highlighted a "historical role of the party in achieving the independence of Mongolia" and stressed that the MPP "has significantly contributed to increasing of the literacy rate in Mongolia, introducing a new health system, developing of the agricultural and industrial sectors."

The MPP was founded in 1921 by D.Bodoo, S.Danzan and other prominent patriots.

Link to article

 

Ninja Mining

March 2 (Bloomberg Businessweek Photo Blog) --

Link to blog

 

---

"Mogi" Munkhdul Badral

Senior Client Manager / Executive Director

CPS International LLC

Telephone/Fax: +976-11-321326

Mobile: +976-99996779

Email: mogi@cpsinternational.mn

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CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSLicense Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.

 

Disclosure/Disclaimer

CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.

CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.

 

 

 

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