Tuesday, August 30, 2011

[CPSI NewsWire: Prophecy Signs 92,000 Tonne Offtake Agreements]

CPSI NewsWire brings you market updates on Mongolia, compiled by CPS International, a Mongolian marketing arm of CPS Securities, a Perth, WA based stockbroking and corporate advisory firm, specialising in capital raising for mining and junior stocks.

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Close: Mongolia Related ASX Listed Companies, August 29, 2011



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Prophecy signs sale agreements for 92,000 tonnes of coal

August 29 (Proactive Investors USA & Canada) Prophecy Coal Corp (CVE:PCY) announced Monday it signed several coal sales agreements with both Russian and Mongolian buyers, totaling 92,000 tonnes.

This coal is from the company's wholly owned Ulaan Ovoo coal deposit, located 430 kilometres from the Mongolian capital city of Ulaanbataar, and about 17 kilometres from the Russian border.

The mine has a measured and indicated resource estimate of approximately 209 million tonnes of low-ash, low-sulphur coal.

The first agreement, Energy LLC, is a company registered in the Buryatia Republic of the Russian Federation, which has agreed to purchase 22,000 tonnes of coal to be consumed in local Buryat power stations and boilers.

Over the next two months, the coal that Prophecy has stockpiled at the Sukhbataar rail station will be loaded and transported across the Mongolia-Russia border into Russia, via the city of Naushki.

Other coal purchasers announced today include two local Mongolia companies and two Mongolian government power plants. These Mongolian groups have agreed to buy up a total minimum of 70,000 tonnes over this year.

Prophecy said it expects to deplete its coal stockpile, and operate continually to meet these commitments.

"Ulaan Ovoo's clean coal with its low ash (8%) and sulphur (0.5%) is highly desired," said CEO John Lee.

"We are making steady and solid progress to establish Ulaan Ovoo as a recognized coal supplier in local and international markets."

Prophecy’s stock on the TSX-Venture Exchange rose 8.7% as of 10:10 am EDT, to trade at $0.75 per share.

Link to article

Link to PCY release


Ronny2011 shuts down trading in miner (Voyager)

August 29 (AAP) A fake drilling result on a popular stock market chat room has forced a mining company into a trading halt and has the corporate watchdog hot on the heels of the perpetrator.

The mysterious posts by Ronny2011 forced Voyager Resources, with a market value of $94 million, to go into a trading halt on Friday morning.

Who is Ronny and how did he (or she) achieve this?

Ronny2011 joined the popular HotCopper internet stock market chat room last week and posted what he claimed were latest drilling results from Mongolia before they had been released to market.

The highly impressive copper-silver results did indeed impress the market.

Fifty eight million shares traded hands and the company's shares shot up about six per cent in under an hour before website moderators deleted the suspicious post.

The results were fake and Voyager remained in a trading halt on the Australian Securities Exchange for all of Monday.

The Australian Securities and Investments Commission (ASIC) have been provided with Ronny2011's internet protocol (IP) address and may charge him (or her) with fraud.

All Ronny2011 did was edit an old Voyager production report and anonymously post a link to it in a chat room to shut down trading in shares valued at millions of dollars.

Voyager chief executive Kell Nielsen described the events as damaging for the company, which was due to release its actual assay results this week.

"I guess we're a little bit in shock about it all," he told AAP.

"At best you can describe it as mischievous, at worst you can describe it as outright fraud and deception.

"My feeling is, that with some of the stuff ASIC will prosecute a director over, they should really seriously have a look at this as well."

It is not the first time the website, which attracts thousands of posts and rumours about the stock market a day, has attracted adverse attention.

Datamotion, a data security company, successfully sued HotCopper user Graeme Gladman last year.

He had to pay company director Ronald Moir $30,000 in damages for defamatory comments, in what was described as a landmark case for companies to protect their reputations online.

HotCopper's managing director Greg D'Arcy said he had passed on Ronny2011's IP address to ASIC investigators and thought the company did the best it could.

The website has 10 volunteer moderators and members can also flag posts they believe are suspicious to alert the moderators.

"We have pretty good affiliations with ASIC, they have direct log-ins to HotCopper, they see what I see in terms of what's going on," he told AAP.

"We informed them pretty well straight away, we get 6000 posts a day.

"It's a live blog so a very few individuals can try and ruin it for the rest."

ASIC would not comment other than to say that it would be vigilant in monitoring "the many conversations happening in the market to ensure fair trading practices."

Link to article



August 29, Voyager Resources Limited (ASX:VOR) --

The Company has become aware of an internet chat room posting on Hotcopper which it would like to clarify. The posting purports to represent assay results from the Company’s KM Copper Porphyry Project in the South Gobi Region of Mongolia.

The Company confirms that the announcement is incorrect.  The Company has not authorised or approved the information contained in the posting (which purports to be an ASX announcement dated 26 August 2011).

On becoming aware of the posting, the Company immediately requested a trading halt in its securities and had the posting removed by the site moderators. The Company understands the matter is now with the regulators.

The Company believes confirmation that the posting is incorrect and unauthorised to be material. The Company is and remains in compliance with its continuous disclosure obligations.

The Company expects to release a drilling update prior to market opening on Tuesday 30 August 2011. The Company will remain in trading halt until then.

Link to release


MRC: Managing Director Appointment

August 29, Mongolian Resource Corporation Limited (ASX:MUB) --

The directors of Mongolian Resource Corporation Ltd. (‘MRC’ or the Company) are pleased to announce the appointment of Mr Tony Bainbridge as Managing Director and Chief Executive Officer of the Company. Tony, who was previously Acting CEO of the Company, will be located in Ulan Bataar, Mongolia.

Link to release


MRC: Director Resignation

August 29, Mongolian Resource Corporation Limited (ASX:MUB) --

The directors of Mongolian Resource Corporation Ltd. (‘MRC’ or the Company) announce the resignation of Jim Bickel as a Non-Executive Director of the Company, effective 26 August 2011.

The Chairman, on behalf of the Board, expressed thanks for the many contributions Jim had made to the Company. The Chairman noted that Jim Bickel had supported the company from the earliest stage of its development.

Link to release


LUCKY STRIKE CN Project Quality Assurance and Quality Control of the Due Diligence Work

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 29, 2011) - Lucky Strike Resources Ltd. ("Lucky Strike" or the "Company") (TSX VENTURE:LKY) is pleased to announce the engagement of services with Norwest Corp, JEB Mineral Surveys, MonMap, SGS Mineral Services and Stewart Group to complete a quality assurance and quality control (QA/QC) analysis as part of the Company's due diligence investigations in connection with its acquisition of an 80% interest in six mining exploration licences and permits in the Choir-Nyalgia coal basin in south-western Mongolia (the "CN Coal Project"). This announcement is further to the Company's news release of August 8thwhich announced the commencement of a 1,500 m due diligence drilling program on the CN Coal Project.

Norwest Corp. of USA has outlined the QA/QC procedures for geotechnical core logging procedures and rotary drilling logging procedures. In order to obtain valid results, the cores must be processed and logged in a consistent manner by all personnel involved. This involves careful handling, washing, orientation and marking of the core prior to logging. The core samples will be preserved following industry standard procedures including ASTM D5192 to retain in-situ moisture and avoid contamination. The Rotary Drilling geologic logging covers procedures used for logging rotary chip samples for holes that are drilled using Polycrystalline Diamond (PCD) for the purpose of identifying coal seam locations down each hole. The procedures outline a step-by-step methodology to achieve these QA/QC practices. Additionally, Norwest has been conducting on-site training and supervision of the field personnel involved in this effort.

JEB Mineral Surveys of Ulaanbaatar is carrying out the down-hole geophysical logging. The truck-mounted down-hole wire-line probe produces density, gamma and resistivity logs as well as a caliper log. The probe is lowered into the uncased PCD hole, or, for a core hole, the probe is dropped through the drill rods. For the latter, the resistivity and caliper data cannot be collected. The combined density and gamma data curves are typically sufficient to discriminate coal beds from other sedimentary units. In a PCD hole, the cuttings will be collected every 1 to 2 meters' and will be geologically described to help confirm lithology signatures from the down-hole geophysics survey. Cores will be described in greater detail, and for coal-bearing units, specific coal parameters will be emphasized. A Rock Quality Designation ("RQD") description will be included for intervals of non-coal sediments. Sample cuttings from the PCD drilling will not be sampled for laboratory analysis.

MonMap Engineering Services Co. of Ulaanbataar will survey the drill hole locations and significant features on the CN Coal Properties. MonMap was founded by Mongolian geoscience engineers in 1992. They perform high quality topographic mapping, aerial photography, remote sensing, geophysical, geological, geochemical, other geoscientific surveys and GIS services for many international projects.

SGS Mineral Services of Australia and Stewart Group of UK have been selected for sample preparation and analysis with local laboratories in Ulaanbaatar. A proximate analysis will report on coal core samples with values for moisture content, ash, volatile constituents, fixed carbon, sulphur and calorific value. The QA/QC practices are to meet the requirements of ISO 9001 and/or ISO 17025.

Lucky Strike expects the log results of the due diligence drilling to be announced within 60 days and the coal quality assay results to be available 20 days thereafter. Furthermore, Norwest Corp. is on schedule for a September release of the NI 43-101 Technical Report with a calculation of compliant coal resources in the measured, indicated and inferred categories. The reportable coal mineral resource estimates will be based on the results of the initial 2,000 meter exploration drilling program supervised by Norwest in 2009 on a small portion of three of the six CN coal properties representing less than 10% of the total licensed area.

Link to release


Shenhua: In Talks With Mongolia To Develop Tavan Tolgoi Coal Deposit

August 29, HONG KONG -(Dow Jones)- China Shenhua Energy Co. (1088.HK) said Monday it is negotiating with the Mongolian government to develop the nation's massive Tavan Tolgoi coal deposit in the Gobi desert, but added it expects the project to account for only 5% of the company's total coal reserves.

Shenhua said the Tavan Tolgoi investment won't have a major impact on the company, though it declined to disclose further details, citing a confidentiality agreement with Mongolian authorities.

In July, the Mongolian government said it had chosen a global energy consortium including China Shenhua Energy, the U.S.'s Peabody Energy Corp. (BTU) and a Russian-Mongolian group to develop its Tavan Tolgoi coal deposit.

Shenhua declined to specify its shareholding in the consortium.

Tavan Tolgoi is estimated to have reserves of 6.4 billion metric tons of coal, a significant amount of which is coking coal, which is used in steelmaking. The deposit is 270 kilometers from Mongolia's border with China.

Shenhua also said Monday it is confident it will achieve or exceed its 2011 coal output and sales targets.

The company said in March that it was targeting coal output of 258 million metric tons this year, up 15% from 224.8 million tons last year, and a 20% rise in coal sales to 350 million tons from 292.6 million tons.

The Beijing-based coal producer, which also operates railways, ports and power plants, said Friday that its first-half net profit rose 17% to CNY22.73 billion from CNY19.51 billion because of increased coal sales.

Link to article


Australia: Party over: Victorian court refuses enforcement (for Altain Khuder) against non-party to arbitration

August 29 (Mondaq) --


In an important decision on the enforcement of foreign arbitral awards, the Victorian Court of Appeal has allowed an appeal by IMC Aviation Solutions Pty Ltd (formerly IMC Mining Solutions Pty Ltd) (IMC), and in so doing refused the enforcement of an arbitral award made against IMC on the ground that IMC was not a party to the arbitration agreement.  

The Court of Appeal's decision highlights:

·         That Australian courts have power to revisit jurisdictional issues in full in enforcement proceedings.

·         The importance of dealing with jurisdictional issues in arbitration before significant costs are incurred by running an arbitration that renders an unenforceable award.

·         That a party seeking enforcement of an award has to show a prima facie case that the award creditor and debtor were parties to the arbitration agreement.

·         That, in some circumstances, it may be appropriate to insert a clause expressly providing for the governing law of the arbitration agreement.  

The Court of Appeal decision

In IMC Aviation Solutions Pty Ltd v Altain Khuder LLC [2011] VSCA 248, the Court of Appeal allowed an appeal from the judgment of Croft J.  Earlier in the year, we reported on Croft J's decision and its implications (see here).  

In essence, the case concerned whether IMC was a party to the arbitration agreement (it was not named as a party to the contract) or had otherwise consented to becoming a party to the arbitration.  On the evidence, Croft J found it was a party, but Hansen JA and Kyrou AJA (Warren CJ declined to decide) found otherwise.  Accordingly, the arbitral tribunal had no jurisdiction to make an award against IMC.

Link to article

Link to Victorian Court of Appeal release (includes litigation background)



August 29, Ulaanbaatar, Mongolia /MONTSAME/ Five stock trades were held at Mongolia's Stock Exchange from August 22-26.

In overall, 364.4 thousand shares were sold of 46 joint-stock companies totaling MNT 281.9 million.

Index TOP-20 was 20406.94 points decreasing 364.45 units or 1.75% against the week earlier.

The total market capitalization was set at MNT two trillion 78.7 billion decreasing MNT 43.7 billion or 2.06%.

Shares of "Khereglee impex" /14.9%/, "Sav shim" /10.0%/, and "State Department Store" /7.5%/ increased, but shares of "Tsagaan tolgoi" /14.7%/, "Dorvon-Uul" /14.3%/, and "Boonii khudaldaa" /13.3%/ decreased.

13 stocks closed higher, 24 shares declined and nine shares remained unchanged.

Shares of "Remikon" /163.4 thousand/, "Genco tour bureau" /46.9 thousand units/ and "Silikat" /36.3 thousand units/ were the most actively traded in terms of trading.

Link to article



August 29, Ulaanbaatar, Mongolia /MONTSAME/ Head of the Presidential Office and chairman of the National Committee for Reducing Air Pollution D.Battulga get acquainted on Monday, August 29 with a process of a new factory of semi-coked fuel which is being constructed based on the #2 Thermal Power Station.

A general director of the "Amore International" company J.Baatarsuren told the Presidential Office Head that the process of the construction works are running in accordance with its scheme.

"All works are being done properly except the furnace assembling.

By 15th of November, the works of the 1st line will be finished, and so testing products will be manufactured.

The two lines' construction will be completed on 1st of October, 2012," J.Baatarsuren said. According to him, it is expected price of coke would be MNT 80-100 thousand per ton.

Link to article



August 29, Ulaanbaatar, Mongolia /MONTSAME/ The ninth international working meeting of the “North-central-eastern Asian solid geology structure or metallogenic” project will be organized by Mineral Resources Authority.

Opening of the meeting will run on Tuesday, August 30 and will end on September 1, in a conference hall of the Open Society Forum.

At the end of the meeting, participants of international joint project will sign a note of the meeting of four-side representatives.

The meeting expected to attract five scientists from the Republic of Korea, 14 scientists from the People's Republic of China, 17 scientists from Mongolia, and 14 ones are from the Russia Federation.

Reports will be delivered by B.Ariunsan, the Vice Minister of Mineral Resources and Energy; O.V.Petrov, a director of the A.P. Karpinsky Russian Geological Research Institute (VSEGEI); Dong Shuwen, the vice president of Chinese Academy of Geological Sciences; and Bok Chul Kim, a director of the Planning and Management Section of the South Korean Institute of Geology and Minerals.

On September 2-4, all participants will travel to a porphyry copper deposit of the Oyu tolgoi mine, and will get acquainted with great construction of the mineral deposit and a massive area with rare metals.

Link to article


'Mine-golia': Across the steppes, new wealth emerges

August 29 (CNN) -- On Oyu Tolgoi -- "Turquoise Hill" -- the biggest business venture in Mongolia is taking shape.

The copper resources aren't new to locals -- after all, for thousands of years locals dug out copper to melt down into things like arrowheads, CNN's Stan Grant reports.

But the massive Gobi Desert copper and gold mine -- a joint venture with foreign mining conglomerates Ivanhoe and Rio Tinto -- is expected to account for one-third of the nation's total economic output by 2020 and boost the average earnings of Mongolia by 60%.

The numbers are staggering. The development phase runs to nearly $5 billion. The mine is projected to produce to 450,000 tons of copper and more than 300,000 ounces of gold. Developers claim there's enough here to mine for the next 50 years or more.

Yet it's placing stress on am ancient nomadic way of life.

Many locals they're worried the mine will drain all the water, although mine owners say Oyu Tolgoi has a separate underground source.

There is also stress on animal herds and available land.

Says one nomadic herder: "At the moment it's impossible to graze our herd near the mine. Officials might say it is only 10-kilometer limit, but because of the traffic and dust you don't see any herds within 20 or 30 kilometers."

Other herders, like Myagmarjav, say they are benefiting from extra money for his wife and children through part-time work at the mine.

"We think we can work at the mine and take care of our herds. My three children will get a chance to go to school and have a better education," he says.

Link to video and article


<Mogi & Friends Fund A/C>


Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.




"Mogi" Munkhdul Badral

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CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.



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CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.



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