Haranga Resources boosts stake in Mongolian Iron Ore Project to 80%

Haranga Resources (ASX: HAR) has acquired a further 20% interest in the joint venture company that holds the five exploration licences comprising the Selenge Iron Ore Project in Mongolia.

Haranga Resources now holds an 80% interest and maintains full operational and management control of the joint venture.

Significant widths of iron mineralisation have been intersected at all three of the iron ore targets drilled at Selenge to date and drilling is ongoing with four diamond rigs currently in operation.

Metallurgical test work has commenced on initial samples from Bayantsogt and the company is aiming to define an initial JORC Resource by early 2012.

The company’s Selenge iron ore project covers 600 square kilometres in the heart of Mongolia’s premier iron ore development region, and has access to the main trans- Mongolian rail line and nearby rail spurs.

The mineralisation at Bayantsogt is primarily hosted in Banded Magnetite Skarn, similar in nature to the nearby 300 million tonne Eruu Gol deposit which has proven amenable to low cost mining and beneficiation.

In 2009 the China Investment Corporation (CIC) invested over US$500 million to obtain a one third interest in Eruu Gol.

Initial drilling at the larger Dund Bulag Prospect has recently discovered significant widths of iron mineralisation of a similar nature to that observed at Bayantsogt.

Mineralised intersections from initial drilling at the Huiten Gol Prospect appear to be smaller in width but of a higher iron grade than that observed at Bayantsogt.

Results from initial assay results from both Dund Bulag and Huiten Gol and pending.

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