Uranium Mongolia

Today the Canada-based Khan Resources Inc. (KRI) owns a 69% share in the Dornod project, mostly through its 58% subsidiary Central Asian Uranium Co. Ltd (CAUC). Russia's Priargunsky Mining & Chemical Enterprise (a subsidiary of Rosatom) and the Mongolian government each own 21% of CAUC, which holds the only uranium mining licence in Mongolia. A bankable feasibility study has confirmed the viability of the project, the capital cost estimate being USD 333 million and first production possibly in 2012. A definitive feasibility study released in March 2009 showed that the project was sound, on the basis of 24 780 tU indicated resources (NI 43-101 compliant), including 20 340 tU probable reserves. Annual production of 1 150 tU over 15 years is envisaged. In July 2009, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) suspended for three months the CAUC mining licence due to alleged violations of Mongolian laws.