Issue link: http://resourceworld.uberflip.com/i/392638
o c t o b e r / n o v e m b e r 2 0 1 4 www.resourceworld.com 9 "But the real problem for future invest- ment, as evidenced by the dispute over the Oyu Tolgoi investment agreement, is fun- damentally about sanctity of contract and no longer so much the legal framework," he said. Overall, the mining community in Mongolia is patient and looking to the new legal and contract environment to ensure that the business climate and the tax take is commensurate with the risk of operating here. One of the beneficiaries of the new investment and minerals environment is Altan Rio Minerals Ltd. [AMO-TSXV]. The extension of the exploration license from nine to 12 years will improve their plans for copper and gold discoveries in their Chandman-Yol site in the western province of Khovd and in their Khavchuu site 110 km northwest of Ulaanbaatar. "Legislation has been a problem, but we are starting to see some positive signs with the extension of the exploration permit length which will assist in attracting inves- tors," said Kerry Griffin, Technical Director, Altan Rio, who worked at Oyu Tolgoi in 2002. The 82,500-hectare Chandman-Yol exploration project has a similar geological setting and is part of the copper belt that supports numerous deposits such as Oyu Tolgo, commented Griffin. Their Khavchuu site across 4,000 hectares is near the suc- cessful production of Centerra Gold Inc. [CG-TSX] and the Boroo site. Drilling is to commence in mid-September to follow up on recent IP targets and the 11 g/t gold intercept located in 2012. The European Bank for Reconstruction and Development (EBRD) is in a private placement of up to US $10 million for an 18.7% stake in a five-year development program. Vancouver-based Kincora Copper Ltd. [KCC-TSXV; BDY-AIM] is testing large scale copper-gold porphyry targets in Bronze Fox in the Oyu Tolgoi corridor, actively drilling with two rigs and with near sur- face gold potential. The area of exploration is across 40 km 2 of a 223 km 2 license area and Kincora is the only copper exploration company listed without a strategic partner. Kincora is leading the effort for the return of the 106 licenses revoked late in 2013 involving corrupt government employees. Sam Spring, president and CEO of Kincora, commented that, "existing investors are in dispute with the government and that there were horrible drafts to the Minerals Law in the past, but this one is not bad." Erdene Resource Development Corp. [ERD-TSX] of Nova Scotia has three proj- ects in the southwestern province of Bayankhongor, 950 km from Ulaanbaatar. The Altan Nar Project is gold-silver with lead and zinc prospects across 7.5 km 2 and hosts multiple shallow gold zones. Their Zuun-Mod molybdenum-copper project has two mining licenses (valid for 30 years with two 20-year extensions) across 6,399 hectares hosting a measured and indicated resource of 218 million tonnes grading of 0.057% molybdenum and 0.069% cop- per for one of the largest molybdenum deposits in Asia. President and CEO Peter C. Akerley would like to see the price of molybdenum increase and looks forward to the opportunity to use the rail infra- structure 215 km to the Mongolia-China border of Shivee Huren-Ceke. Erdene is also drilling on the Khuvyn Khar large copper-silver porphyry near Zuun Mod with results of 1.34% copper and 9.24 g/t silver. The Teck Resources Ltd. [TCK.B-TSX; TCK-NYSE] alliance had two private placements on April 21st for the large trenching program that began on August 18th for the copper potential and, on May 13th, for drilling Altan Nar. Brisbane, Australia-based Sedgeman Ltd. [SDM-ASX] was awarded the contract for the engineering design, procurement and construction management for the 15 million tpy Ukhaa Khudag (UHG1) Mine of Energy Resources LLC, the first coal handling and preparation plant in the South Gobi region of Mongolia. Energy Resources LLC is a subsidiary of Hong Kong-listed Mongolian Mining Corp. The mine has been in production since 2009. n