DGAP-News: Deutsche Rohstoff AG to Take up Gold Production in Mongolia
(firmenpresse) - DGAP-News: Deutsche Rohstoff AG / Key word(s): Miscellaneous
Deutsche Rohstoff AG to Take up Gold Production in Mongolia
02.05.2011 / 20:00
---------------------------------------------------------------------
Deutsche Rohstoff AG to Take up Gold Production in Mongolia
Contract signed with Mongolian partner - Start of production in June
Heidelberg, Germany. Deutsche Rohstoff AG (DRAG) has extended its
activities to Mongolia. To such end, the Group has entered into a contract
with the Mongolian company T&T Unix (T&T). T&T holds the rights to two gold
deposits located in the Province of Bayankhongor accumulating total
explored resources of 12,000 ounces of gold. The deposits contain
so-called alluvial or placer gold which may be panned fully mechanically
from the sediments. The two gold deposits are projected for mining in 2011
and 2012.
The agreement provides that T&T places the rights to the deposits and
concessions at the disposal of DRAG and that its acts as partner for
Mongolian suppliers and service providers. DRAG will assume responsibility
for managing mining operations and provide the required processing
equipment which will remain the property of DRAG. The gold so extracted
will be sold to the National Bank of Mongolia paying the international spot
price less a 2% mark-down every two weeks. Following deduction of all
operative expenses, the contracting parties will share the proceeds on a
50:50 basis. The new partners intend to secure and mine further alluvial
gold deposits all over Mongolia.
Dr. Titus Gebel, CEO at DRAG, comments: 'Following long preparations we
decided to go to Mongolia. We hold the view that Mongolia is a politically
and legally stable country. Our experience shows that German companies are
very welcome in Mongolia. Additionally, we have full confidence in our
partner T&T.'
Dr. Thomas Gutschlag, DRAG's CFO, adds: 'The great advantage of mining
placer gold lies in the relatively lower capital expenditure and
pre-funding requirements. We expect to fully recover our invested funds and
to generate a surplus before the end of the current financial year.
Moreover, our processing equipment can be set up and disassembled rather
quickly and transferred to different locations. We can imagine very well
extending our alluvial gold mining operations also to further countries in
the years to come.'
DRAG acquired two mobile standard processing plant in New Zealand, each
holding a capacity of 50 to 75 m3 an hour. This equipment is already on its
way to Mongolia. Further material will be sent from Germany. The
contracting partners reckon that the entire machinery will be ready for
commissioning and start of production at the agreed locations by the
beginning of July. DRAG will send its own supervisory personnel to the
locations. The required mining concessions have already been granted. The
authorities expressly welcomed DRAG's concept based on the environmentally
friendly 'strip mining' extraction method. This mining practice removes
only a single strip of soil which is re-cultivated right away. Since - due
to weather conditions - excavation work may be performed only until the
beginning of November, the mines will be operated 24 hours a day. The
contracting partners plan to produce 5,000 ounces by the end of the season.
DRAG's total investments do not exceed EUR 500,000.
Besides conventional alluvial gold extraction, a novel dry-blowing method -
developed by DRAG in collaboration with RWTH Aachen, the University of
Applied Sciences in Aachen, Germany - will be tested on the areas holding
the deposits. To date, placer gold may be extracted on industrial scale
only by using water. However, many placer gold deposits are situated in
completely dry areas, including the locations in Mongolia. The dry-blowing
technique recently developed replaces water by a flow of air. This new
extraction method is tested for the first time under real-life conditions.
Should this novel technology prove its effectiveness successfully, vast
areas in Mongolia and other countries would be open to industrial gold
mining for the first time.
Heidelberg, Germany, 2 May 2011
Entry Standard-listed Deutsche Rohstoff AG is setting up a new commodity
producer. The Group's priority areas include gold, oil, gas and so-called
'high-tech metals' such as tungsten, tin and rare earth elements. All
projects are located in politically stable countries, whereby special focus
is placed on Germany. The Group's business model is based upon
(re)developing deposits which were explored in depth in the past. First
production activities were taken up in January 2011 in Georgetown,
Australia. For further information about Deutsche Rohstoff AG log on to
www.rohstoff.de.
Contact:
Dr. Thomas Gutschlag
gutschlag(at)rohstoff.de
+49 6221 652 4730
End of Corporate News
---------------------------------------------------------------------
02.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
122576 02.05.2011
Datum: 02.05.2011 - 20:00 Uhr
Sprache: Deutsch
News-ID 33933
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 185 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Deutsche Rohstoff AG to Take up Gold Production in Mongolia"
steht unter der journalistisch-redaktionellen Verantwortung von
Deutsche Rohstoff AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
