Thursday, September 8, 2011

[CPSI NewsWire: Gen. Wesley Clark Urges Mongolia to Rescue $1B UCG/GTL Project]

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, September 7, 2011



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Indices, September 7, 2011


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 S&P/ASX 200

 4,183.4  Up





 5,000.6  Up






September  7, 2011, Ulaanbaatar (Envidity) – Despite significant progress over the past year, the finalization of USD 1 billion Shivee Ovoo Coal Gasification and Gas to Liquids ("UCG/GTL") project that is expected to create approximately 3,000 construction and 150 permanent higher salaried jobs, reduce fuel dependency and prices, introduce patented technology, and raise millions of dollars in royalty and tax revenue for Mongolia has stalled. "We call upon our Mongolian partners and the Mongolian Government to honor their commitments and representations to move this project forward" said Envidity's Chairman, retired General Wesley Clark.

"The license holder Live Energy Group LLC/Shine Shivee LLC has so far  been acting in a bizarre manner toward the execution of a definitive agreement to carry the project forward since it was presented for execution over six weeks ago" said Envidity CEO Jeff Brookman.  According to  a legally-binding agreement entered into by Live Energy Group's Executive Director last year, Live Energy Group and its subsidiary company Shine Shivee LLC, license holder in the Shivee Ovoo field, were obligated to sign a definitive  agreement enabling initiation of the seismic and drilling on the property.  Although Envidity has fully met its commitments regarding funding, technology and timing, the Executive Director of Live Energy Group LLC/Shine Shivee LLC  and a group of Chinese and Malay speculators have refused to execute the definitive agreement that has been agreed, effectively blocking the  Envidity Project from launch.

"One of the key reasons that we chose Mongolia to carry out the project despite significant offers elsewhere was the specific request of  Prime Minister Batbold to bring cutting edge value adding technology to Mongolia" said General Clark.   Envidity's project was specifically encouraged because of its potential to profoundly impact the Mongolian people by offering an abundance of low cost, ultra clean, Mongolian made liquid fuels and electricity produced through green patented western technology; not to mention the potential for jobs and billions of dollars to be generated into the Mongolian economy through the production of chemical feedstocks.

"One would expect the Government, who helped induce this Project, to act decisively and protect this strategic Project's licenses from  potentially  illegal and short sighted acts  that appear to be becoming endemic in Mongolia and have occurred on the eve of the Project's launch," continued General Clark.  "If the Mongolian Government fails to address these actions by license holders seeking to block the Envidity Project's many positive benefits to Mongolia, it will send a clear message that sophisticated international mining investors  must think very carefully before investing  the substantial  time, financing and other resources  to develop a project in the Mongolian mineral sectorI call on  Prime Minister Batbold to intervene to protect the integrity of the Project and the exploration licenses held by Live Energy Group LLC and Shine Shivee LLC to allow this critically important Project to move forward. Firm action by the Government is needed to protect investor confidence in Mongolia," said Clark.

According to CEO, Jeff Brookman, "what's being discovered so far is that the Executive Director  and other Mongolian shareholders of Shine Shivee LLC have apparently profited from the sale of some of their ownership stake in Shine Shivee LLC to Chinese and Malaysian speculators who may not have been fully informed of the legal commitment to Envidity.  Post sale, the Mongolian Executive Director appears to be working with the Chinese and Malaysian speculators to maximize their interests at the expense of UCG development for the Mongolian people."  Mr. Brookman explained that despite multiple promises to execute the definitive agreement over the summer, Live Energy Group LLC and Shine Shivee LLC's Executive Director has thus far failed to do so, in clear violation of his company's legal obligations. 

"We are certainly hoping that this is not a bait-and-switch by the Government and the local partner" interjected Mr. Brookman.   "Like other investors, we have always taken the Mongolian Government at their word at investment conferences, trade shows and in meetings designed to encourage business in Mongolia.  They have assured all of us that Mongolia is open and ready for business."   Minister Zorigt has been presented with a draft agreement to reconfirm the Government's commitment toward the Project and his response is expected this month.

"I regret that our UCG/GTL project has been delayed despite a year's work with the Mongolian government agencies, investors, fuel offtake buyers, and all other necessary preparations for project launch.  Repeated promises by our Mongolian partners to fulfill their legal obligations have not been kept" said retired General Wesley Clark,  Chairman of Envidity.  "Everybody could still win with this project – especially the Mongolian people, but the opportunity is slipping away," Clark said, "and could become a classic example to  foreign investors of how difficult it is to launch projects so beneficial to Mongolia. The real losers will be the people of Mongolia, who would  have to forgo quick access to virtually unlimited supplies of clean, lower cost fuel and continue their overwhelming dependence on their neighbors who like to decide what Mongolia can and cannot do."  This comes at a crucial time when Russia has recently increased its export tax.

"We have previously asked the Government of Mongolia to expedite the UCG Investment Agreement (fiscal stabilization agreement) for this project and take this opportunity to renew that request.  We believe that Government leadership on this agreement is more important than ever" said Envidity CEO, Jeff Brookman. The Envidity UCG/GTL project is a good example of an important strategic development, which could benefit from greater transparency that was discussed recently in high-level talks between the governments of Canada, the United States and Mongolia.

Investors at the Discover Mongolia conference in Ulaanbaatar and Mongolia Investment Summits in Hong Kong, London, New York and Toronto need to be cognizant of the fact that one can have a binding agreement, secure the funds, dedicate substantial time, receive substantial encouragement from the Government and then the project becomes stalled because of insider manipulation of exploration license rights in clear breach of existing agreements.

Envidity has secured $120m of cash and access to an additional $850m in debt for a total of $1B in foreign direct investment into Mongolia over five years.   With timely action by Envidity's Mongolian partners and the Mongolian Government, Envidity's UCG/GTL Project can still go forward.


For more information regarding the Envidity project please see

Link to Envidity release


Энвидитигийн мэдэгдлийн Монгол хувилбар:

Мэдэгдэл: Энвидити нэг тэрбум долларын Шивээ-Овоо нүүрс хийжүүлэлт - Хийгээс шингэн хүртэл ("UGC/GTL") төсөл хүнд сорилттой тулгарлаа

2011 оны 9 дүгээр сар 7, Улаанбаатар хот (Энвидити,дээр) - 3.000 орчим барилгын ажил, 150 гаруй байнгын, өндөр цалинтай ажлын байр шинээр бий болгох, түлшний хараат байдал ба үнийг бууруулах, патентлагдсан технологийг нэвтрүүлэн ашигт малтмал ашигласны төлбөр, татвар зэрэг олон сая долларын орлогыг Монголд оруулах 1 тэрбум долларын Шивээ-Овоо Нүүрс Хийжүүлэлт-Хийгээс Шингэн Хүртэл ("UGC/GTL") төсөл нь өнгөрсөн жилийн хугацаанд ихээхэн ахицтай байсан хэдий ч төслийн хэрэгжилт нь зогсонги байдалд орлоо. 

"Бид өөрсдийн Монгол хамтрагчид болон Монголын Засгийн газрыг бидэнд өгсөн амлалт, ойлголтоо хүндлэн энэхүү төслийг цаашид үргэлжлүүлэхийг хүсч байна" гэж гэж АНУ-ын чөлөөнд гарсан генерал, Энвидитийн ТУЗ-ын дарга Уэсли Кларк хэлсэн юм.

"Лиценз эзэмшигч болох Лайв Энержи Групп ХХК/Шинэ Шивээ ХХК нарт энэхүү төслийг цаашид үргэлжлүүлэхэд шаардлагатай үндсэн гэрээг байгуулахаар зургаан долоо хоногийн өмнө санал тавьсан хэдий ч тэд учир нь үл ойлгогдох байдлаар аашлах болсон" хэмээн Энвидити компанийн гүйцэтгэх захирал Жэфф Брукман мэдэгдлээ. 

Өнгөрсөн жил Лайв Энержи Групп ХХК-ийн гүйцэтгэх захиралтай хууль ёсны дагуу байгуулсан гэрээ ёсоор Шивээ Овоо талбайн лиценз эзэмшигч Лайв Энержи Групп ХХК, түүний охин компани болох Шинэ Шивээ ХХК нар нь үндсэн гэрээнд гарын үсэг зурж, тус талбайд сейсмик болон өрөмдлөгийг ажиллагааг эхлүүлэх боломжийг бүрдүүлэх үүрэгтэй байжээ. Хэдийгээр Энвидити нь санхүүжүүлэлтийн, технологийн, цаг хугацааны бүхий л шаардлагыг хангасан боловч Лайв Энержи Групп ХХК/Шинэ Шивээ ХХК-ийн гүйцэтгэх захирал болон Хятад, Малайзын богино хугацаанд, эрсдэл тооцохгүйгээр хөрөнгө оруулах сонирхолтой, лицензийг цаашид хэрхэн ашиглах талаар төлөвлөгөөгүй хэсэг хүмүүс  харилцан тохиролцсон үндсэн гэрээнд гарын үсэг зурахаас татгалзан, Энвидити төслийг эхлүүлэхэд саад учруулж байна.

"Бид энэхүү төслийг хэрэгжүүлэх саналыг олон газраас хүлээн авсан хэдий ч Монгол улсыг сонгосон гол шалтгаануудын нэг нь Засгийн газрын өндөр албан тушаалтнуудаас орчин үеийн дэвшилтэт технологийг Монгол улсад нэвтрүүлэхээр бидэнд онцгойлон тавьсан хүсэлтүүд байсан" гэж генерал Кларк хэлжээ. Байгаль орчинд ээлтэй, патентлагдсан барууны технологийн дагуу элбэг нөөцтэй, хямд үнэтэй, маш цэвэрхэн, шингэн түлш, цахилгааныг Монголд үйлдвэрлэх болон химийн түүхий эд үйлдвэрлэж олон ажлын байрыг бий болгох, тэрбум тэрбум долларын орлогыг Монголын эдийн засагт оруулах нь Монголын ард түмний амьдралд чухал ач холбогдолтой болохын хувьд Энвидити төслийг хөхүүлэн дэмжих болсон.

"Энэхүү төслийг дэмжиж байсны хувьд Засгийн газар нь уг стратегийн ач холбогдол бүхий төслийн лицензүүдийг төсөл эхлэхээс өмнө үүсч буй, Монгол улсад газар аваад байгаа хууль бус, харалган үйлдлүүдээс хамгаална гэсэн хүлээлт бий" гэж генерал Кларк үргэлжлүүлэн хэллээ. 

"Хэрэв Засгийн газар нь Энвидити төслийн Монгол оронд ашигтай олон давуу талыг хэрэгжүүлэхэд саад болж буй лиценз эзэмшигчдийн үйлдлийн талаар ямар нэгэн арга хэмжээ авахгүй бол энэ нь олон улсын томоохон хөрөнгө оруулагч нарт Монголын ашигт малтмалын салбарт төсөл хэрэгжүүлэхээр цаг хугацаа, хөрөнгө мөнгө болон бусад нөөц бололцоогоо дайчлахаасаа өмнө сайтар бодож үзэх шаардлагатай гэсэн сануулгыг тодоор хүргэх болно. Би Ерөнхий Сайд Батболдоос энэхүү төслийн шударга байдал, Лайв Энержи Групп ХХК болон Шинэ Шивээ ХХК нарын эзэмшдэг лицензийг хамгаалж, төсөл цааш хэрэгжих боломжийг бүрдүүлэхийг хүсч байна. Засгийн газар шийдэмгий алхам хийх нь хөрөнгө оруулагчдыг Монгол улсад итгэх итгэлийг хамгаалах болно" гэж Кларк хэллээ.  

Гүйцэтгэх захирал Жэфф Брукман "Одоогийн байдлаар илэрхий болсон зүйл нь Шинэ Шивээ ХХК-ын гүйцэтгэх захирал болон Монгол хувь нийлүүлэгчид нь өөрсдийн хувьцааны тодорхой хэсгийг тус компанийн Энвидитигийн өмнө хүлээсэн хууль ёсны үүргийн талаар мэдээлэлгүй байсан байж болох Хятад ба Малайзын богино хугацаанд, эрсдэл тооцохгүйгээр хөрөнгө оруулах сонирхолтой, лицензийг цаашид хэрхэн ашиглах талаар төлөвлөгөөгүй хэсэг хүмүүст худалдан ашиг олсон явдал юм. Энэхүү худалдаа явагдсаны дараа Монголын талын гүйцэтгэх захирал нь хэсэг Хятад болон Малайзуудтай хамтран өөрсдийн олох ашгийг дээд зэргээр нэмэгдүүлэхийн тулд Монголын ард түмэнд ашигтай UCG-ийн хэрэгжилтийг золиосолж байна" гэжээ. 

Ноён Брукманы тайлбарласнаар Лайв Энержи Групп ХХК болон Шинэ Шивээ ХХК-ийн гүйцэтгэх захирал нь үндсэн гэрээ байгуулах амлалтыг зуны турш хэд хэдэн удаа өгсөн хэдий ч ямар нэгэн үр дүнд хүрээгүй бөгөөд энэ нь компани өөрийн хууль ёсны үүргийг зөрчиж буй юм.  "Бид энэ нь Засгийн газар болон дотоодын хамтрагчид өгөөш өгчихөөд санаагаа хувиргаж буй явдал биш хэмээн найдаж байна" гэж ноён Брукман нэмж хэллээ. "Бид бусад хөрөнгө оруулагчдын нэгэн адил Монгол улсад бизнес эрхлэхийг дэмжих зорилгоор зохион байгуулагддаг хөрөнгө оруулагчдын чуулга уулзалт, худалдааны яармаг, уулзалтууд дээр Монголын Засгийн газрын хэлсэн зүйлсийг үнэн хэмээн хүлээн авсан. 

Тэд бүгдээрээ л Монгол улс нь бизнес эрхлэхэд нээлттэй, бэлэн байдалтай байгаа хэмээн бидэнд баталгаа өгч байсан юм". Зоригт сайдад төслийг хэрэгжүүлэх талаар Засгийн газраас өгсөн амлалтыг дахин баталгаажуулах гэрээний төслийг өргөн барьсан бөгөөд тэрбээр энэ сард өөрийн хариуг өгнө хэмээн хүлээж байна. 

"Монголын Засгийн газрын агентлагууд, хөрөнгө оруулагчид, түлш худалдан борлуулагчидтай хамтрах болон бусад шаардлагатай бэлтгэлүүдийг жилийн хугацаанд хангахын тулд ихээхэн ажил хийгдсэн хэдий ч бидний UCG/GTL төсөл эхлэхэд саад учирсанд би ихээхэн харамсаж байна. Манай Монголын хамтрагчид өөрсдийн хууль ёсны дагуу хүлээсэн үүргээ биелүүлнэ гэж олон удаа амлалт өгсөн хэдий ч энэ нь талаар болсон" гэж АНУ-ын чөлөөнд гарсан генерал, Энвидитийн ТУЗ-ын дарга Уэсли Кларк хэлсэн юм. "Энэ төсөл хэрэгжсэнээрээ бүгдэд ач тусаа өгөх боломж байсаар байгаа-ялангуяа Монголын ард түмэн, гэсэн хэдий ч энэхүү боломж нь замхран үгүй болж байна" гэж Кларк хэлсэн ба "энэ нь Монгол улсад ашигтай төсөл хэрэгжүүлэхэд ямар их бэрхшээл учирдаг тухай гадаадын хөрөнгө оруулагчдад сонгодог жишээ болох болно. 

Дээрх явдлын гол хохирогчид нь Монголын ард иргэд байх бөгөөд тэд бараг л дундрашгүй нөөцтэй, цэвэр, хямд үнэтэй түлш хэрэглэх боломжоосоо татгалзан, Монгол юу хийж болох, хийж болохгүй байхыг шийдэх дуртай хөршүүдээсээ хэт хараат хэвээрээ байх болно" гэжээ. Энэ нь Орос улс шатахууны экспортын татвараа нэмсэн эгзэгтэй үетэй таарч байгаа юм.

"Бид урьд өмнө Монгол улсын Засгийн газарт уг төсөлтэй холбогдуулан UCG хөрөнгө оруулалтын гэрээг (татварын тогтвортой байдлын гэрээ) байгуулах үйл явцыг түргэвчлэх тухай хүсэлтийг тавьж байсан бөгөөд уг боломжийг ашиглан хүсэлтээ дахин тавьж байна. Бид энэхүү гэрээнд Засгийн газрын удирдлага юунаас илүү чухал хэмээн итгэж байгаа билээ" гэж Энвидити компанийн гүйцэтгэх захирал Жэфф Брукман мэдэгдлээ. Энвидити UCG/GTL төсөл нь стратегийн хувьд өндөр ач холбогдол бүхий бүтээн байгуулалтуудын тод жишээ бөгөөд энэ нь Канад улс, АНУ болон Монгол улсын хооронд саяхан болсон дээд хэмжээний уулзалтуудын үеэр яригдсан ил тод байдлыг нэмэгдүүлэхтэй холбогдуулан ашиг тусыг хүртэж болох юм. 

Улаанбаатар хотноо зохион байгуулагддаг Discover Mongolia чуулга уулзалт болон Хонг Конг, Лондон, Нью Йорк ба Торонто хотноо зохион байгуулагддаг хөрөнгө оруулагчдын чуулга уулзалтад оролцогч хөрөнгө оруулагчид нь хууль ёсны дагуу гэрээ байгуулан, санхүүжүүлэлт олж, ихээхэн цаг хугацаа зарцуулан, Засгийн газраас дэмжлэг хүлээсэн хэдий ч хүчин төгөлдөр байгуулсан гэрээ байсаар байтал хайгуулын лицензийн эрхийг өвөр хоорондоо урвуулан ашигласнаараа хэрэгжүүлэхээр зорьсон төсөл саатаж болох тухай зохих мэдээлэлтэй байх шаардлагатай ажээ. 

Энвидити нь 120 сая долларын санхүүжилтийг бэлнээр, 850 сая долларын санхүүжилтийг зээлээр, нийтдээ 1 тэрбум долларын хөрөнгө оруулалтыг Монгол улсад дараагийн 5 жилд оруулахаар бэлтгэлээ базаажээ. Энвидитигийн Монгол хамтрагчид болон Монголын Засгийн газраас цагаа олсон үйлдэл хийснээрээ Энвидитигийн UCG/GTL төсөл хэрэгжих боломжтой хэвээр байгаа билээ.

Энвидити төслийн талаарх дэлгэрэнгүй мэдээллийг сайтаас авна уу.

Мэдэгдлийн линк 


Erdene says it has mobilized drilling rig to explore new gold target in Mongolia

September 7 (The Canadian Press) HALIFAX - Erdene Resource Development Corp. (TSX:ERD) says it has discovered "extensive gold mineralization" at its Tsenkher Nomin property in southwest Mongolia and has increased exploration activity to determine its extent.

The Halifax-based company said surface exploration had bound two adjacent soil samples graded at 0.47 grams per tonne and 1.4 grams per tonne of gold.

Exploratory drilling began on Sept. 5 to determine the extent of the mineralization, Erdene announced Wednesday.

The company's stock rose four cents or six per cent to 70 cents after a trading halt was lifted, following the announcement.

Link to article

Link to ERD release


East Asia Minerals Provides Mongolia Uranium Program Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 7, 2011) - East Asia Minerals Corporation (TSX VENTURE:EASwishes to report on the progress of its 2011 summer drilling campaign at its wholly-owned uranium projects located in Mongolia. The drilling campaign was launched in August with the objectives of (a) meeting annual expenditure requirements to keep the projects in good standing; (b) test previously identified targets at the Enger and Ingenii-Nars projects; and (c) initiate early stage exploration at the Ulaan Nuur, Sevsuul Bulag, Bukht Uul and Unegt prospects.

East Asia Minerals has now completed the proposed summer 2011 drill program at the Enger project. The program consisted of four PCD-DDH (Polycrystalline Pre Collar-Diamond Drilling) holes and six air core holes for a total of 838 metres. All PCD-DDH holes have encountered the targeted uranium-bearing horizons with down-hole radiometrics supporting the geologic model. Samples from the diamond drill core sections of the holes have exhibited excellent recovery and have been sent to the laboratory for further analysis.

The Enger project was discovered in the mid 1980s by government prospecting teams who conducted at least 18 drill holes, which resulted in the delineation of a historical, non-NI43-101 compliant, resource of approximately 400,000 lbs. of U at an average grade of 0.065% U. East Asia Minerals first acquired the Enger project in August 2005 and actively drilled the property in 2006/07 to confirm the presence of this historical uranium mineralization. Key intercepts of the East Asia drilling campaigns of 2006/2007 included 2.5 metres of 0.410% U3O8(ENDD003) and 13.5 metres of 0.108% U3O8 (ENDD005). In addition, the drilling supported the concept that the volcanic-hosted mineralization at Enger forms in a similar geological environment to that of the Gurvanbulag uranium deposit (Saddle Hills project) in northeast Mongolia.

To access this image, please go

Figure 1 – Enger plan view map with contact area mineralization and drill hole locations (refer to for additional maps and drill sections).

To access this image, please go

Figure 2 – Enger longitudinal section looking north (refer to for additional drill sections).

For the PCD-DDH program, four holes (ENDD010, and ENDD016 to 018) ranging from 57 to 250 metres depth were drilled to test the southwest up-dip extension of the main mineralization, and up-dip extension of deeper mineralized horizons. All holes encountered the targeted uranium-bearing horizons with down-hole radiometrics supporting the geologic model. The shallower main mineralized horizons at the contact between volcanics and overlying sediments were successfully extended. In addition, a number of tabular or lens like zones were encountered within altered rhyolite and associated tuffs just beneath the contact zone. The southwest extension from deeper zones was encountered in the eastern area of drilling, whereas to the west there appears to be some cut-offs or off-setting due to faulting. The 2011 program has extended the Enger deposit up-dip to the southwest and remains open in all other directions.

For the air core drilling (EN01AC to EN06AC), two prospective areas were identified in the northeast sector of the property from a soil gas hydrocarbon geochemical survey and follow-up ground radiometric survey. East Asia drilled six shallow holes (20 to 54 metres depth), with two holes identifying early stage targets for further investigation in sediments. Hole EN001AC encountered an average of 610 cps (counts per second) from 1.8 to 3.5 metres depth, and drill hole EN005AC encountered 373 cps from 10.17 to 10.42 metres.

The following table presents the key drill intercepts from holes conducted by East Asia Minerals since acquiring the project in 2005. By comparing the cps readings with assay results of the 2006/07 drill programs, East Asia Minerals is encouraged by the results of the 2011 drill program. The 2011 cps results are indicative and validation will be determined when assays are received from the submitted core samples.



From (m)

To (m)

Width (m)

Grade (U3O8%)

Average cps








































































Table 1 – Key intercepts at Enger from East Asia Minerals' drilling since 2006 (also refer to

The drill rig at the Enger project has now been moved to the Ingenii-Nars project. The proposed drilling program at Ingenii-Nars is expected to include four PCD holes in the main zone of the sandstone-hosted uranium project. Additional drilling in other parts of the property had been planned and is now being reconsidered in light of this year's excessive wet conditions in the clay basin where the project is located.

EAS has not verified the classification of the historic resource reference and is not treating it as a NI 43-101 defined resource verified by a QP. Although this historical resource is relevant to recognizing the potential of the Enger Property, it should not be relied upon. Samples have been sent to Stewart Mongolia LLC Laboratory in Ulaanbaatar, Mongolia. Lionel Martin, P.Geo., the designated QP within the meaning of NI 43-101, has reviewed and approves the content of this release.

Link to release


Jay Taylor's "Gold, Energy & Tech Stocks" newsletter gives Prophecy Coal (TSXV:PCY) a Buy Recommendation - Video Summary Posted on

Vancouver, British Columbia, September 7, 2011 - Jay Taylor, in the latest edition of the J. Taylor's Gold, Energy & Tech Stocks newsletter, gives Prophecy Coal (TSXV:PCY) a buy recommendation. Jay became aware of Prophecy Coal after his recent visit to Prophecy Platinum's (TSXV:NKL) property in the Yukon. has produced a "video news alert" based on the J. Taylor's Gold, Energy & Tech Stocks newsletter recommendation. If this link is not enabled, please visit and enter "Prophecy" in the search box.

Let's review a couple of the reasons Jay gives to substantiate his buy recommendation.

Prophecy Platinum was a spin off from Prophecy Coal earlier this year. Prophecy Coal still holds a 45% interest in the spinoff company, and at present is selling for little more than the value of its holding in Prophecy Platinum.

Jay Taylor believes that the company's very substantial coal holdings in Mongolia offer shareholders major upside potential. Prophecy has more than 1.4 billion tonnes of surface minable thermal coal resources on two coal properties in Mongolia.

The new producing mine is the Ulaan Ovoo Mine, which recently signed coal sales agreements, totalling 92,000 tonnes, with Mongolian and Russian buyers. It has a 20 million tonne reserve and a 209 million tonne resource of high quality thermal coal. A single-seam, 50 metre thick coal seam, and a strip ratio of 2:1, should make this a relatively low-cost mining operation.

230,000 tonnes of coal have already been stockpiled. Although geophysical surveys suggest significantly more coal exists at this mine. Even the present reserves and resources suggest a minimum mine life of 20 years.

The second project, which Jay believes is potentially far more significant, is the Chandgana Project. The resource here is 1.2 billion tonnes of thermal coal, but longer term this could get much bigger with some 100 square kilometres of prospective claims. With a stripping ratio of 0.5:1, mining costs are expected to be low. In addition to the low stripping ratio, the deposit is located next to rail and paved roads. A mining license has been obtained for 140 million tonnes.

Plans are to use this coal to fuel a power plant to be built at the mouth of this open pit mine. A permit to build the power plant is anticipated by October. The plan here is to initially build a 600 megawatt plant to serve Mongolia's surging electricity demand and then later to increase the plant's size to 1,400 megawatts to sale into Beijing and other Chinese markets which are starved for more electricity. The current timeline has construction beginning during the second quarter of 2013 and for the project to be completed by 2015. Early economics studies suggest electricity sold at US$0.06/kw/h would more or less equal the sale of coal at $100/tonne.

Jay believes the anticipated bankable feasibility study should bolster confidence in this project.

Prophecy Coal trades at $0.66, and with approximately 195 million shares outstanding, is capitalized at $130 million.

Link to release

Link to Video Summary


Mongolia Growth Group Ltd. Announces Issuance of Employee Stock Options

Calgary, Alberta CANADA, Sep 07, 2011 (Filing Services Canada via COMTEX) -- Mongolia Growth Group Ltd. (YAK - CNSX), ("MGG" or the "Company") announces that 175,000 5-year stock options to purchase shares of MGG have been issued to salaried employees of MGG pursuant to the Company's stock option plan. These options have been issued in order to retain and motivate new and existing employees of the Company.

Link to release


VOR closed up 5.56% to 9.4c


September 7, Voyager Resources Limited (ASX:VOR) --

The Board of Voyager Resources Limited is pleased to announce that Mr. Aaron Bertolatti has been appointed as joint Company Secretary of the Company, in addition to Mr. Timothy Flavel.

Link to release


CEO closed up 5.75% to 9.2c

Mining in Mongolia: The New Black

September 9 (ABC) Mongolia is land locked country squeezed between the Russian Federation to the north and China in the south and it almost just touches the border of Kazakhstan in the West.

Since moving from a communist state to a democracy in the early 1990's, Mongolia has been working to make its mark on the free market economy.

On the back of mining income, the capital of Ulaanbataar now boasts fashion houses like Prada and Zegna and the young population speak English very well.

For the mining industry the opening up of the country is akin to discovering a new El Dorado.

With a population of 2.8 million people, Mongolia is the most sparsely populated country in the world and its vast mineral resources are virtually untapped.

One of the worlds leading mining entrepreneurs, Robert Friedland of Ivanhoe Mines, has described Mongolia as the 'new frontier for global mining'.

Ivanhoe has established the Oyu Tolgoi copper-gold-silver mine in Mongolia, the largest of its kind in the world

Australian companies making their mark in Mongolia

Australian mining companies are joining the international race to establish massive coal and other minerals industries in Mongolia.

One of them is the oddly named C@ (SEE-at) (ASX:CEO) which started life as an opticals company.

Then Mark Earley took over as CEO to steer C@ into its new role as an explorer and developer of mines.

Mark Earley has a long pedigree in the coal industry, and he sees what's happening in Mongolia now as a reflection of how Indonesia developed its coal sector around 25 years ago.

"The Mongolian Government has developed a very understandable structure around license acquisition, around development and exploration, all the way through to mining" he says.

"It's a clear policy that's spelt out with clear taxes and royalties and in all, the licensing system there is very well organised."

Mark Earley says the Mongolian government understands that a robust mining industry can not only fill the coffers, but help socially, in a country with the vast majority of people live in poverty.

"It has numerous social issues around alcoholic drinks, there are, orphanages that are full of young children that don't have parents, I hope a lot of the money that comes from mining will go back and sort out the social issues in Mongolia because it's got a very bright future."

Aspire Mining is another Australian company that has a presence in Mongolia.

It has 100 per cent ownership of the Ovoot Coking Coal Project in the North.

The coal has been described by analysts as having 'highly attractive properties and is a hard coking coal with superior blend carrying capacity'.

In layman's terms, it means the coal is good quality and would be attractive to any of the worlds steel makers, where coking coal is used in blast furnaces to turn iron ore into steel

This week a major mining conference is being held in the Mongolian capital of Ulaanbataar, and Australian companies will be there in force.

Link to article & Mark Earley Interview



September 7, Ulaanbaatar, Mongolia /MONTSAME/ A general agreement on soft loan to be granted by the Economic development cooperation fund /EDCF/ of Republic of Korea in 2011-2015 will be concluded between Governments of Mongolia and the Republic of Korea.

The Cabinet meeting on Wednesday backed in principle this draft agreement and decided to coordinate it with relevant standing committees of the Parliament.

In 1993-2007, EDCF has granted a total of USD 60 million to Mongolia for the implementation of 8 projects.

In 2011-2015, the sides agreed to provide credits of 300 million US dollar. The loan will be devoted to establishing a national diagnostic and treatment center, continuing a project on united communication, control, information network, building a wholesale center, and constructing a coal-to-gas plant.

Link to article



September 7, Ulaanbaatar, Mongolia /MONTSAME/ A parliamentary draft resolution on intensifying works of erecting oil refineries was submitted on Tuesday, September 6 to the State Great Khural.

It has been drawn up by MPs P.Altangerel, R.Amarjargal, D.Arvin, N.Batbayar, SBayar, N.Ganbyamba, Ya.Batsurri and other parliamentarians. Oil extraction started in Mongolia in the year 1998 as an experimental way.

By December 31, 2008, Mongolia extracted a total of 3.1 barrel oil, and exported it to foreign countries. As the oil exploration in Mongolia has been intensified, the British Petroleum of the UK, the Western Geophysical, the Phillips Petroleum of the USA and the Sibneftegeofizika of Russia have drawn up research materials and then performed research works of geophysics, lithology, petrophysics, geochemistry and biophysics.

Activities of oil extraction are done in accordance with a product-share contract approved by the government of Mongolia which has key some specific principles.

In respect of these principles, a contractor must make an investment with 100 per cent to the oil extraction and bear own risk. In addition to it, a contractor shall pay money to the Mongolian government for exploiting the nonrenewable natural resources. As of today, seven foreign companies have been doing activities of the oil extraction on territories of Mongolia under the principles of the product-share contract.

It is calculated that 2-4 years will be taken to erect oil refineries that have capabilities of processing two million tons crude oil a year.

The cabinet considers that it is time to urgently begin constructions of small-sized oil refineries that provide the domestic needs because the technical and economic justification will get ready by the next year.

Link to article


Civil Movement opposes Ivanhoe Mines CEO

September 7 ( Representatives of Civil Movement are protesting Robert Friedland's ownership of 33 mining licenses. Friedland is the CEO of Ivanhoe Mines, a Canadian mining company.

Civil Movement says Friedland has held 28 of the licenses since February 28, 2002, and has renewed them several times.

Civil Movement says it is worried because there are reports that the licenses could be sold to Chinese companies.

Civil Movement coordinator B.Khosbayar said the organization is sending a letter to the National Security Council demanding three measures to address the issue: If a foreign company decides to sell a mining license, it must first get the permission of state and local authorities; when a license is sold, the seller must pay a tax on any income from the sale; and foreign companies operating in Mongolia's mining sector must direct 90 percent of all earnings toward Mongolian development.

Civil Movement says it will also send a letter to Robert Friedland protesting the possible sale of his licenses.

Link to article


China in mind, India steps up military ties with Mongolia

September 7 (Indian Express) In an indication of expanding military ties with the nation, Army Chief General VK Singh has left on a three-day visit to Mongolia even as a batch of crack Indian troops will be reaching the country next week for a round of joint training exercises.

General Singh's visit, the first by an Army Chief in seven years, comes as India steps up military engagement with China's northern neighbour and increases high-level visits, including one by President Pratibha Patil this July. Officials said Mongolia, which is landlocked between Russia and China, has referred to India as its 'third neighbour'. Delhi has been keen to engage the country, which also shares the longest 4,677-km border with China. At 3,488 km, India shares the second-longest border with China.

While General Singh will be attending the centenary celebrations of Mongolian Liberation and will interact with the President of Mongolia and the Chief of General Staff of the Mongolian Armed Forces, a batch of 40-odd troops from the Indian Army will participate in a joint exercise with the armed forces next week.

Sources said India will send a sub-unit level delegation for the latest round of 'Nomadic Elephant' exercises with the nation that will take place from September 15-29. It is a follow-up of a similar exercise that took place in Belgaum last year that saw the participation of 30 armed force personnel from the Mongolian Armed Forces.

The exercise could turn out to be an annual affair with officials pointing out that India has similar regularised engagements only with the US and China.

A small batch of Indian troops also participated in exercise 'Khan Quest' in Mongolia from July 20 to August 13. The multi-nation exercise was focused on peacekeeping operations, an area where India is sharing its expertise with Mongolia. The exercises are the latest in a series of engagements that have taken place since 2004.

India has handed over non-lethal military equipment to the Mongolian armed forces as a goodwill step. It also imparts training to Mongolian troops on peacekeeping missions.

Link to article


PM signs student's petition against nuclear waste storage

September 7 ( A secondary school student has succeeded in his attempt to get Mongolian Prime Minister S.Batbold to sign a petition against storing nuclear waste in the country. The student, B.Bat-Orgil, started the petition in response to rumors that Mongolia is considering taking nuclear waste from other countries. He lives in Mandal soum of Selenge aimag, and he wanted the prime minister to sign the petition when he visited there this week. 

Batbold signed the petition for the student and praised his patriotism. He also said young people should not be misled by the rumors. The prime minister said the Government has already released a statement officially denying the rumors. He also said Mongolian law prohibits the transportation and storage of nuclear waste in the country.

Link to 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

Executive Director

CPS International LLC

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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.



CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.

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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