DURING difficult times for the global iron ore industry Haranga Resources is focused on completion of compliance activities required by Mongolian mineral laws and regulations for its Selenge Iron Ore Project in the country’s north. The company is also considering the options available to it in regards to the project.
During the March quarter the company’s 80%-owned subsidiary Haranga Khuder LLC, holder of five mineral exploration licences, two pre-mining operations agreements and one mining licence for Selenge, focused on compliance.
The company’s office in Ulaanbaatar completed and submitted to the Mineral Resources Authority of Mongolia the activities reports for 2015 as well as operation plans for 2016. During the quarter these documents were approved by the relevant government bodies.
In its March quarter report, Haranga said, “Management continues to consider the strategy of the company in regards to the project and the operational options available in order to maintain the company’s position in the project, taking into account the current status of the iron ore market globally.
“Whilst management is reviewing the current operational status of the project, the company remains focused on and committed to the long term progression of the project’s development.”
The Selenge project is near Mongolia’s second largest industrial centre of Darkhan, where the key infrastructure such as railway, electricity and water supply are well developed. The main Trans-Mongolian railway, which is a direct access to the two neighbouring nations of China and Russia, is connected by local sub-rail spurs.
As a result of extensive drilling work in 2011 and 2012 the company was able to delineate a resource that is the largest internationally recognised JORC-compliant iron ore resource in Mongolia with significant exploration upside. The resource covers three clustered deposits within the project area.
The combined total resource is 254 million tonnes of iron ore at an average in situ grade of 17.2% iron for 44 million tonnes of contained iron metal based on a 12.5% iron cut-off grade, of which 99.7% is in the measured and indicated categories.
The company plans to reach an annual export capacity of 3 million tonnes of iron concentrate when production commences.
During the March quarter ASX-listed Haranga completed a partially underwritten non-renounceable rights issue of one share for every one share held. Funds raised totalled approximately A$193,274 before costs.