Mongolian Resource Corporation eyes high grade gold prize in Mongolia

Mongolian Resource Corporation (ASX: MUB) has updated the market on the company's diamond drilling campaign in Northern Mongolia, where an initial 16 holes for 4500 metres has recently kicked off.

The drilling is being conducted at the Blue Eyes and Sujigtei Projects, which is designed to confirm the high grade potential and status of previous mining work at the existing mine workings - and in particular to examine the depth extents of the Sujigtei mineralisation.

The first hole at Sujigtei is designed to replicate the mineralisation intersected by Centerra which drilled 12 holes within the Sujigtei License Area in 1997 that included 3 holes in the vicinity of the mine.

Of the three holes, the highlights included:

- 1.6 metres at 114.5 grams per tonne (g/t) gold from 47.9 metres; and
- 10.0 metres at 8.3g/t gold from 132.0 metres.

The company's first target is to explore the extent of this high grade mineralisation on the main vein with a 100 metre by 100 metre drill pattern to 300 metres, which has the potential to outline any open cut resources in the vicinity of the mine.

Blue Eyes development work continues

At Blue Eyes, project sample test work has been completed to look at the lower grade material associated with the high grade vein with test work to be undertaken to see the potential of leaching for open cut test work.

Importantly at the project, the concrete works for the main processing plant has now been completed and attention is now turning to the concrete works for the crushing and grinding circuits.

Concrete works on the new core shed, site laboratory and camp facilities has also kicked off.

Feasibility work at Sujigtei

Importantly for the progression of the Sujigtei Project, recent work during the Feasibility Study has addressed the previously known historical site that exists in the southeast portion of the license area.

Mongolian Resource Corporation said that it has been concluded from the archaeology work that this area contains a significant cultural heritage site.

The company has taken the view to be proactive on this issue and has undertaken discussions with the Culture Ministry Department to preserve this site.

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