Kharmagtai Water Supply Drilling Program Recommences - Seite 3

SRK personnel will oversee the 2024 drilling and field program.

During 2023, preliminary geophysical investigations were conducted. This included gravity, vertical electrical sounding, transient electromagnetic method, and downhole geophysical logging. Using this information, five boreholes were drilled to depths greater than 300m targeting potential deep aquifer units. These boreholes will be re-tested as part of the 2024 field work program, with results incorporated into the 2024 ZUK hydrological model.

Figure 1. PFS Water Drilling in ZUK Basin

Figure 2. Drilling Water Monitoring Hole at ZUK Basin

Existing Water Resource
The Kharmagtai project holds an existing water reserve of 69.1 litres per second, established for Kharmagtai in 2013 by Rio Tinto, located in ZUK basin directly adjacent to the Kharmagtai project, within 6km of the existing exploration camp at its nearest point.² The purpose of the limited 2013 reserve was to enable registration of the Kharmagtai mining license and did not fully explore the capacity of the ZUK basin.

Hydrological drilling and groundwater assessments were undertaken in 2009, 2010 and 2012. During this period at least 22 boreholes were drilled over this period to a maximum depth of 178m, 18 of which fall within the current ZUK permit area. Historical assessments were also completed in the 1980s by joint Mongolian-Russian researchers. The combined data from the historical works, as well as the 2013 water reserve, forms the basis for the current PFS hydrological exploration program.

Future Hydrological Drilling
After completion of the PFS, and during the final stage of development, the Kharmagtai project will undertake a comprehensive drill, test and construction program to bring its target water sources to a full production standard, which is required to register a Mongolian Production Reserve, for extraction during mine operations. To ensure Kharmagtai is ready to commence pre-stripping and ore mining in early 2027, the Mongolia Production Reserve is targeted for completion in the first half of CY2025 to support mining permit approvals by end 2025. Execution of this future program is outside the scope of the PFS, however the planning for this program will be undertaken prior to commencing early works.