MONGOL GAZAR LLC OLON OVOOT GOLD PROJECT MONGOL GAZAR LLC OLON OVOOT GOLD PROJECT LAND PROPERTY EXPLORATION MINING PROCESSING PLANT

MONGOL GAZAR LLCMONGOL GAZAR LLC OLON OVOOT GOLD PROJECT OLON OVOOT GOLD PROJECT

LAND PROPERTY

EXPLORATION

MINING

PROCESSING PLANT

OLON OVOOT GOLD PROPERTY LOCATIONOLON OVOOT GOLD PROPERTY LOCATION

ULAANBAATAR

Mandal ovoo

DalanzadgadOLON OVOOT GOLD DEPOSIT

LAND PROPERTYLAND PROPERTY

MONGOL GAZAR OWNED 250 000 HECTAR EXPLORATION LICENCE

EXPLORATIONEXPLORATION

• GEOLOGICAL MAPPING

• GROUND GEOPHYSICAL SURVEY

• SAMPLING

• TRENCHING

• CORE DRILLING

• RC DRILLING

• ASSAY

DIAMOND CORE AND DIAMOND CORE AND REVERSE CIRCULATION REVERSE CIRCULATION

DRILLINGDRILLING

KHANIIN KHETS OROGENIC GOLD FIELDKHANIIN KHETS OROGENIC GOLD FIELD

OLON OVOOT

OVOOT III

BOROODON

MODOT

ITGEL

UNEGEN DEL

DIORITEGAVUU

BURKHAN DEL

Length- 45-50 km Width - 5-10 km

KHANIIN KHETS GENERAL STRUCTURAL PLANKHANIIN KHETS GENERAL STRUCTURAL PLAN

OV

OO

T SY

NCLIN

E

GOYOT SYNCLIN

E

KHORIMT A

NTICLIN

E

OLON OVOOT – GREENSTONE HOSTED, OROGENIC GOLD OLON OVOOT – GREENSTONE HOSTED, OROGENIC GOLD DEPOSITDEPOSIT

• HOST ROCK: HOST ROCK: -ANDESITE, ANDESITIC TUFF, SUBVOLCANIC -ANDESITE, ANDESITIC TUFF, SUBVOLCANIC BODIES OF DIORITE, ALL COMPETENT BODIES OF DIORITE, ALL COMPETENT

-SANDSTONE, MUDSTONE, PHYLLITIC SHALES,-SANDSTONE, MUDSTONE, PHYLLITIC SHALES, SERICITIC SHALES, ALL INCOMPETENTSERICITIC SHALES, ALL INCOMPETENT

• STRUCTURE: STRUCTURE: - DEFORMATION STYLE STRUCTURE:- DEFORMATION STYLE STRUCTURE: - FOLDS, HINGE AND HINGE SURFACE ZONE- FOLDS, HINGE AND HINGE SURFACE ZONE LEG ZONE, SADDLE REEF ZONE.LEG ZONE, SADDLE REEF ZONE. - FAULTS, SHEAR ZONES, MYLONITE AND - FAULTS, SHEAR ZONES, MYLONITE AND CATACLASITE ZONE ALONG SHEARING, CATACLASITE ZONE ALONG SHEARING, REVERSE FAULTSREVERSE FAULTS

ALTERATION AND MINERALIZATIONALTERATION AND MINERALIZATION

• ALTERATIONALTERATION

SERICITIZATIONSERICITIZATION

SILICIFICATIONSILICIFICATION

CHLORITIZATIONCHLORITIZATION

CARBONATIZATIONCARBONATIZATION

PROPYLLITIZATIONPROPYLLITIZATION

• MINERALIZATIONMINERALIZATION

QUARTZ-LOW SULPHIDEQUARTZ-LOW SULPHIDE

Au-QUARTZ-ANKERITEAu-QUARTZ-ANKERITE

QZ-SERICITE-PYRITE-ANKQZ-SERICITE-PYRITE-ANK

QZ-SER- ANK-As-c PYRITEQZ-SER- ANK-As-c PYRITE

CHLORITE-QZ-SER-ANK-PYCHLORITE-QZ-SER-ANK-PY

GOYOT ULAAN EXPLORATION TARGET AREAGOYOT ULAAN EXPLORATION TARGET AREA

MURGUTSUG EXPLORATION TARGET AREAMURGUTSUG EXPLORATION TARGET AREA

GEOLOGICAL MAP OF BURKHAN DEL GOLD DEPOSIT GEOLOGICAL MAP OF BURKHAN DEL GOLD DEPOSIT 2D MODEL2D MODEL

DRILL HOLE LOCATION OF OLON DRILL HOLE LOCATION OF OLON OVOOT GOLD DEPOSITOVOOT GOLD DEPOSIT

GEOLOGICAL CROSS SECTION OF OLON OVOOT GEOLOGICAL CROSS SECTION OF OLON OVOOT OROGENIC GOLD DEPOSIT OROGENIC GOLD DEPOSIT

LINE 433010LINE 433010


LINE 433170LINE 433170


LINE 433330LINE 433330

TSAGAAN TOLGOI ORESHOOT OF OLON OVOOT TSAGAAN TOLGOI ORESHOOT OF OLON OVOOT OROGENIC GOLD DEPOSITOROGENIC GOLD DEPOSIT

HUREN TOLGOI ORESHOOT OF OLON OVOOT HUREN TOLGOI ORESHOOT OF OLON OVOOT OROGENIC GOLD DEPOSITOROGENIC GOLD DEPOSIT

BASIC GEOSTATISTIC PARAMETERS OF THE OLON OVOOTBASIC GEOSTATISTIC PARAMETERS OF THE OLON OVOOT OROGENIC GOLD DEPOSIT OROGENIC GOLD DEPOSIT

Huren Tolgoi hole OVTRCD218

2.530.42

2.824.43

2.75

6.05

1.812.37

5.866.7

11.3

3.85

29.2

1.421.34

9.155.955.89

3.543.36

7.11

11.6

4.111.79

4.831.90.79

1512.6

4.741.910.540

5

10

15

20

25

30

35

11 12 16 17 18 19 20 21 22 23 24 25 112

113

114

198

199

200

201

202

203

204

205

206

207

208

209

210

211

212

213

214

10 11 1516 17 18 19 20 21 2223 24111112113197198199200201202203204205206207208209210211212213

hole depth m 32m & 5.552 g/t

go

ld v

alu

e g

/t

Au assayg/t

Linear (Auassay g/t)

Huren Tolgoi hole OVTRCD219

3.34 3.1

19.6

2.13

0

5

10

15

20

25

207 208 209 210

206 207 208 209

hole depth,m 4m & 7.043 g/t

go

ld v

alu

e g

/t

Au assay g/t


Burkhan Del hole BDH039

8.39

0.36 0.02

1.160.320

1

2

3

4

5

6

7

8

9

13 14 15 16 17

12 13 14 15 16

hole depth,m 5m & 2.05g/t

go

le v

alu

e g

/t

Au assay g/t


Burkhan Del hole BRC440

46.2

5.860.8 0.630

5101520253035404550

36 37 38 39

35 36 37 38

hole depth, m 4m & 13.373 g/t

go

le v

alu

e g

/t

Au assayg/t


BASIC GEOSTATISTIC PARAMETERS OF THE OLON OVOOTBASIC GEOSTATISTIC PARAMETERS OF THE OLON OVOOT OROGENIC GOLD DEPOSIT OROGENIC GOLD DEPOSIT

Tsagaan Tolgoi hole OVTDDH003

7.63

1.19

6.39

3.09

12.814.1

1.24

3.97 3.53 2.91

0

2

4

6

8

10

12

14

16

111.0 111.7 112.7 113.9 114.9 115.9 116.9 117.9 118.6 119.6

110.0 111.0 111.7 112.7 113.9 114.9 115.9 116.9 117.9 118.6

hole depth m, 9.6m & 5.839g/t

go

ld v

alu

e g

/t

Au assay g/t


Tsagaan Tolgoi hole OVTDDH018

18.8

0.8

5.444.07

5.37 6.15

28.1

8.13

4.262.78

0.011.54

0

5

10

15

20

25

30

170 171 172 173 174 175 176 177 178 179 180 181

169 170 171 172 173 174 175 176 177 178 179 180

hole depth,m 12.0m & 7.121 g/t

go

ld v

alu

e g

/t

Au assayg/t


Huren Tolgoi hole OVTDDH036

0.3

7.933.89

16.8

4.513.215.47

19.6

5.750.01

9.122.460.77

65.4

2.022.150.560.170.490

10

20

30

40

50

60

70

93.4

94.4

106.

1

107.

1

108.

2

109.

2

110.

2

111.

2

112.

2

113.

3

114.

2

115.

3

117.

7

118.

8

119.

9

121

122

123

124

92.293.4105.1106.1107.1108.2109.2110.2111.2112.2113.3114.2116.9117.7118.8119.9121 122 123

hole depth m, 19.5m & 8.065 g/t

go

ld v

alu

e g

/t

Au assay g/t


Tsagaan Tolgoi hole OVTRCD110

1.371.514.59

8.138.423.312.72

5.61

16.1

48.3

12.812.3

4.744.765.21.240.810

510152025303540455055

156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172

155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171

hole depth,m 17m & 8.35g/t

go

ld v

alu

e g

/t

Au assay g/t


OLON OVOOT ORE SHOOTS OLON OVOOT ORE SHOOTS

LOOKING FROM NORTH-EAST

OLON OVOOT ORE SHOOTS OLON OVOOT ORE SHOOTS

LOOKING TOP

OLON OVOOT BLOCK MODELOLON OVOOT BLOCK MODEL

3D MODEL ORESHOOTS OF BURKHAN DEL GOLD DEPOSIT3D MODEL ORESHOOTS OF BURKHAN DEL GOLD DEPOSIT

Looking from SE

PIT DESIGN TO 200 M DEPTHPIT DESIGN TO 200 M DEPTH

PLAN VIEW OLON OVOOT MININGPLAN VIEW OLON OVOOT MINING

MAIN PIT AREAMAIN PIT AREA

WASTE HAULINGWASTE HAULING

INSIGHT SECTIONS OF OLON OVOOT GOLD DEPOSITINSIGHT SECTIONS OF OLON OVOOT GOLD DEPOSITLINE 433000LINE 433000

ORE ZONEORE ZONE

INSIGHT SECTIONS OF OLON OVOOT GOLD INSIGHT SECTIONS OF OLON OVOOT GOLD DEPOSITDEPOSITLINE 433204LINE 433204

ORE ZONE

INSIGHT SECTIONS OF BURKHAN DEL GOLD DEPOSITINSIGHT SECTIONS OF BURKHAN DEL GOLD DEPOSITLINE 433250LINE 433250

ORE ZONE

MONGOL GAZAR OLON OVOOT AREA GOLD RESOURCESMONGOL GAZAR OLON OVOOT AREA GOLD RESOURCES(FEBRUARY 2007, WARDROP ESTIMATE(FEBRUARY 2007, WARDROP ESTIMATE))

OLON OVOOT

CATEGORY TONNES GOLD G/T GOLD OUNCES

CAPPED @40GRAMS / TONNE GOLD

INDICATED 7,100,000 2.9 660,000

INFERRED 1,300,000 1.5 62,500

(A) 722,500

UNCAPPED

INDICATED 7,100,000 3.5 797,000

INFERRED 1,300,000 1.8 75,000

(B) 872,000

BURKHAN DEL


CAPPED @25GRAMS / TONNE GOLD

INDICATED 2,100,000 1.6 108,000

INFERRED 355,000 1.3 15,000

(A) 123,000

UNCAPPED

INDICATED 2,100,000 2.3 155,000

INFERRED 355,000 1.3 15,000

(B) 170,000

OLON OVOOT AND BURKHAN DEL GOLD RESOURCEOLON OVOOT AND BURKHAN DEL GOLD RESOURCE


CAPPED

INDICATED 9,300,000 2.6 775,000

INFERRED 1,600,000 1.5 77,000

(A) 852,000

UNCAPPED

INDICATED 9,300,000 3.2 954,000

INFERRED 1,600,000 1.7 88,000

(B) 1,042,000

TOTAL RESOURCES ESTIMATE FOR OLON OVOOT AND BURKHAN DEL PROPERTIES

1,042,000OUNCES

PROCESSING PLANT CONSTRUCTION AT 2003PROCESSING PLANT CONSTRUCTION AT 2003

CIP PROCESSING PLANTCIP PROCESSING PLANT

PROJECT CAPACITY 2000 tn ORE PER 24 HOUR

IN FUTUREIN FUTURE

• FIND OUT 15-20 MILLION TN ORE

• BIULD NEW 5000 TN PROCESSING PLANT

THE END

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MONGOL GAZAR LLC OLON OVOOT GOLD PROJECT MONGOL GAZAR LLC OLON OVOOT GOLD PROJECT LAND PROPERTY EXPLORATION MINING PROCESSING PLANT