Khan Resources, following a competitive bidding process, has awarded a contract to Aker Kvaerner E&C/Scott Wilson Roscoe Postle Associates, (AK/Scott Wilson RPA), to undertake a NI 43-101 compliant pre-feasibility study for the Dornod uranium project in north-east Mongolia .

The environmental component of the study has been subcontracted to Golder Associates and Ecotrade XXK of Ulaan Bataar, Mongolia. The schedule calls for the study to be completed by mid 2007. It is anticipated that when the study has been finalized the uranium mineralization classification of the deposit will be upgraded from a resource to a reserve category.

The Dornod property covers 261 hectares in Mongolia which sits between two of the world's largest uranium markets; Russia and China . Although the rail lines that once existed were dismantled when the Russian government left the area, the beds for the tracks are still there and will not be overly difficult to rebuild.

The area is the site of a former Russian open-pit uranium mine, however Khan expects to go underground. Two separate deposits were developed and shipped ore until 1995, making the value of the property a known quantity. No new exploration is necessary. The underground mining operation will use proven technology and production will be able to result in a low unit cost, Khan reports.

Khan plans on developing a mine at Dornod "that will include on-site a modern state-of-the-art milling and processing facility." These facilities are projected to produce some 4-5 million pounds of U308 over a mine life of 10 years. www.khanresources.com

News sourced from International Mining Project News - www.im-mining.com