Khukh Tag
Defined graphite resource with room to expand and encouraging early metallurgy.
Dundgovi · Resource definition
- Exploration licence
- XV-019603
- Area
- 9.54 km²
- Ownership
- 100% owned
- Province
- Dundgovi (Undurshil soum)
Cautionary statement — The information presented is not materially different from the information presented and signed off by the competent person.
Overview
Khukh Tag gives the Company defined graphite optionality, anchored by a JORC 2012 Mineral Resource with substantial room to grow. Located in Dundgovi province around 320 km southeast of Ulaanbaatar, the project is well positioned for development — 35 km from a paved road and the state power grid, and 80 km from the Airag rail station, which connects via the main line to the Chinese border crossing at Erenhot.
Geology and mineralisation
Graphite at Khukh Tag occurs as massive and banded graphitic schist, intercalated with schist and limestone and folded into lenses that range from a few metres to hundreds of metres in length. The mineralised zones are readily mapped using their distinctive geophysical signature — high conductivity and high chargeability — and remain open in all directions.
The deposit is supported by extensive work: 229 surface samples returning grades from around 1% to over 20% TGC (averaging 7.05% TGC), and 57 diamond drill holes for 3,348 metres completed to the end of February 2023 across five mineralised areas. Early flotation test work indicated that a high-purity graphite product of more than 94% TGC could be produced at around 94% carbon recovery — an encouraging signal for product quality.
Next steps
High-priority follow-up drill areas have already been identified to test the project's growth potential, with mineralisation remaining open in all directions.
Mineral Resource
JORC 2012 Mineral Resource, November 2023, reported at a 4.3% TGC cut-off (ASX announcement "Prospectus" dated 30 Apr 2024).
| Category | Tonnes | Grade | Contained |
|---|---|---|---|
| Indicated (Central) | 1.4 | 13.9% TGC | 197.7 kt |
| Inferred (Central + North + Discovery) | 10.8 | 12.1% TGC | 1,301.1 kt |
| Total Mineral Resource | 12.2 | 12.3% TGC | 1,498.8 kt |
Exploration Target — Khukh Tag
In addition to the Mineral Resource, an Exploration Target of 13.6–84.3 Mt at 5.2–9.1% TGC has been identified, reflecting the project's significant growth potential (ASX announcement "Prospectus" dated 30 Apr 2024).
An Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain whether further exploration will result in the estimation of a Mineral Resource.