Gold projects continue to attract fund
1 сар, 3 долоо хоног өмнө
- Steppe Gold LLC successfully started the Altan Tsagaan Ovoo gold project, starting ore processing at the deposit
Erdene Resource Development Corp, one of the companies developing gold projects in Mongolia, is planning to release the feasibility studies for the Khundii gold within mid-2020. Moreover, the company had secured and attracted USD 5 million convertible loans from the European Bank for Reconstruction and Development (EBRD) at the beginning of last year. CEO of Mongolian Investment Banking Group LLC Bilguun Ankhbayar said, “Although the demand for gold as a safe investment tool and the price rising is favorable for gold mining companies, the shares of companies which developing gold projects, are highly volatile.” ASX listed Xanadu Mines Ltd. has stopped drilling for the Kharmagtai project in Umnugovi province in February. In this regard, the company reconsidered its 2020 operational plans and cut management costs by AUD 1.3 million or 35 percent. Besides, the company has signed an agreement with Japan Oil, Gas and Metals National Corporation (JOGMNC) to attract up to USD 7.2 million for exploration of the “Red Mountain” project. The project is scheduled to set up May and continue until November. Further, Steppe Gold LLC (STGO) successfully started the Altan Tsagaan Ovoo gold project, starting ore processing at the deposit. The company is extracting 533,000 tons of ore containing two grams of gold per ton and concentrating on leaching technology. Also, STGO is arranging to mine 60,000 ounces of gold and set to raise USD 3 million from the National Investment Fund this year.