KHALZAN BUREGTEI PROJECT

KHALZAN BUREGTEI PROJECT

Project overview

Mining

Mine Life: 30+ years
Open pit mining
Low strip ratio, allowing efficient extraction

Project Status

Pilot Plant Testing: Concentrator stage completed; refinery trials scheduled for October 2025
Definitive Feasibility Study (DFS): Ongoing by Wood & Stantec
Environmental & Social Impact Assessment (ESIA): Ongoing by Sustainability & SLR

Drilling Highlight

2012-2013 Total of 11,000 meters
2022-2023 Total of 20,000 meters

Annual Production

Concentrate: 669,000 tonnes
Mixed Rare Earth Oxide (MREO): 13,000 tonnes
MREO Grade: 95%

Project Location

The KB Project is situated in the far west of Mongolia, within Myangad soum, Khovd province. It is approximately 1,600 km west of Ulaanbaatar, 60 km northeast of Khovd city (provincial center), and 20 km north of Myangad township. The site is accessible via road and is conveniently connected to the nearby Khovd Airport.

Location

Geology & mineralization

Rare Earth Elements (REE) play a critical role in high-tech manufacturing and the global transition to green energy. In Mongolia, there are a total of 6 deposits, 80 occurrences, and approximately 300 mineralized points, with an estimated total of 3.1 million tonnes of Total Rare Earth Oxides (TREO).

Among these, the Halzan Buregtei deposit is the largest, containing approximately 50% of Mongolia’s total REE resources, and is potentially one of the few active sources of Heavy Rare Earth Elements (HREE) globally, including dysprosium (Dy) and terbium (Tb).

The REE mineralization at Halzan Buregtei was first identified in 1984 by a joint Russian-Mongolian research team. The deposit is classified as an alkaline granite-type REE deposit, with the western part composed of mineralized nordmarkite and the eastern part mainly of alkaline granite. The strongest mineralization occurs in a roughly 500-meter-diameter circular body of alkaline granite, located at the boundary between these two geological units.

Detailed exploration drilling has shown that the alkaline granite extends to a depth of approximately 200 meters below the surface. The mineralization consists of very fine-grained, disseminated REE-bearing minerals, primarily bastnäsite and synchysite, as well as zircon and other zircon-bearing silicate minerals.

The ore is not visually apparent, and the main ore contains both light and heavy rare earth elements (LREE and HREE). REE concentrations are high within the alkaline granite and nordmarkite, while the HREE/LREE ratio decreases outward from the center of the granite and with depth.

Based on exploration results and laboratory analyses, the deposit has been divided into zones of high, medium, and low REE content. Alkaline granite represents a relatively new source of REE, typically of lower grade but notable for its large ore bodies.

Sustainable Cover

Drilling and Sampling

At MNREC, we have conducted exploration at the Halzan Buregtei project primarily through core drilling. Initial geological mapping, surface sampling, and geophysical surveys were carried out in the 1990s, followed by detailed geological mapping in 2011 to gain a more comprehensive understanding of the area’s structure.

Between 2012 and 2013, we completed a total of 41 drill holes, with an additional 94 drill holes added since 2021. Our planned future drilling is focused on delineating the boundaries of mineralization.

All drilling at Halzan Buregtei has been carried out using diamond core drilling, with core sizes ranging from PQ to NQ, achieving an average recovery of 99%. Drilling was conducted along a staggered grid with approximately 50-meter section spacing and drill hole spacing between 20 and 100 meters.

By the end of 2023, we successfully completed 135 drill holes covering a total length of 30,395 meters, spanning an area of roughly 1,000 by 500 meters. Drill collar locations, depths, and orientations were measured with high precision, and all drilling activities were fully documented using downhole surveys.

We plan to carry out additional drilling in all directions to further delineate the lateral extent of mineralization. All procedures for drill hole processing, sample collection, QA/QC, sample preparation, analysis, and safety are implemented in accordance with industry standards. Our drilling and sampling program has been assessed as sufficient to support mineral resource estimation in compliance with NI 43-101 guidelines.

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