Khan Resources
Khan Resources Inc. is an international mineral exploration and development company, engaged in the acquisition, exploration and development of gold and uranium properties in Mongolia. The mission of Khan has been to acquire low cost and high value properties in Mongolia. Initially two placergold properties in Mongolia, which Khan was acquiring were deemed to be material properties to the Corporation. Management of Khan considers the future of the Company to be based on its uranium assets.
See more information about Khan Resources
Khan Resources says latest study confirms economy of Dornod uranium project in Mongolia
TSX-listed Khan Resources Inc said its definitive feasibility study on the Dornod uranium project in north eastern Mongolia has confirmed its economic robustness, and it is keen on beginning talks with the government regarding an investment agreement as soon as possible.
The study puts the initial capital cost of Dornod at approximately US$333 million. It assumes a long-term uranium price of US$65 per pound triuranium octoxide, and a through-put of 3,500 tonnes per day over a 15 year mine life, which will generate an average annual production rate of 3.0 million lbs U3O8 at a cost of US$23.22 per lb U3O8 or US$58.26 per tonne of ore.
The study was based on the NI 43-101 compliant indicated mineral resource previously reported for the project of 25.3 million tonnes at an average grade of 0.116 percent U3O8 for 64.3 million lbs of U3O8 and an inferred mineral resource of 2.2 million tonnes at an average grade of 0.050 percent U3O8 for 2.4 million lbs of U3O8.
The 2008 probable mineral reserve for the No 2 open pit and No 7 underground deposits is 18.0 million tonnes at an average grade of 0.133 percent U3O8 for 52.9 million lbs of U3O8 out of the 64.3 million lbs of indicated mineral resources. Khan has a 58 percent interest in the No 2 deposit and two-thirds of the No 7 deposit, plus a 100 percent interest in the remaining one-third of the No 7 deposit, giving Khan an overall interest of 69 percent of the uranium contained in both deposits.
President and CEO of Khan Resources, Martin Quick, said: "We are delighted with the results of this study, which further demonstrates the high quality of this deposit. The company intends to proceed with the negotiation of an investment agreement with the government of Mongolia at the earliest possible date."
Chairman James Doak added: "With the current long term price of uranium at US$70 per pound U3O8, and likely to increase significantly over the next several years, this puts Khan in the enviable position of having one of the best new uranium projects in the world.”
