Mardai

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Mardain Gol is a uranium deposit located near former mining town of Mardai located in the Dornod Aimag. Exploration around the Mardai area for uranium was conducted by the Soviet Union starting in the 1950's. In 1972, a major Russian Geological Expedition discovered significant uranium reserves at the Mardai and Dornod uranium sites.[1] Mining in Mardai began in 1988, by Erdes Mining Enterprise, a joint Soviet-Russian company, and was halted in 1993 following the fall of the Soviet Union. It was estimated that around 600 metric tons of uranium were extracted. The small town was reported to host almost 10,000 Soviet engineers. The Mardain Gol deposit is estimated to hold around 1005 metric tons of uranium at an ore grade of .187% usable uranium. [2]

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[edit] Location

Mardai is located in the Dornod Aimag and the town is about 14km away from the major Mardain Gol deposit. It is very close to the Dornod uranium deposit. The town is 150km away from the Russian border and 400km away from the Chinese border.[Google Map of the Town of Mardai]

[edit] Ownership

The Mardai deposit is currently owned by Canadian company Khan Resources. Khan Resources plans to begin construction on the site in 2010 and mining the Mardai site by 2013.[3]

[edit] Cost

Khan Resources includes Mardai in their Dornod deposit feasibility studies. Thus, the initial cost for mining in Dornod is 330 million USD, with an additional cost of 58.26 USD per ton of uranium. If the price of uranium stays stable at 65$ per pound, then the net cash flow from the mine will total a little more than 900 million USD. At the expected mining rate of 3,500 tpd, the deposit has an estimated 15 year life.[4]

[edit] External Links

[edit] References

  1. "Mongolia." Uranium in Central Asia. World Nuclear Association. Retrieved on 10 Aug. 2009.
  2. "Mardain Gol" Uranium Mine Ownership. WISE Uranium Project. Retrieved on 28 July 2009.
  3. Mongolian National Mining Association. Retrieved on 27.Aug.2009.
  4. Presentation by Khan Resources on Dornod Project
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