Meritus Subsidiary Executes Pre-Mining Agreement in Mongolia
October 22, 2012
Vancouver B.C. Meritus Minerals Ltd (“Meritus” or the “Company”) (MML) (TSX-V-MER) Meritus is pleased to advise that its Mongolian subsidiary, Gutain Davaa LLC, has executed a Pre-Mining Agreement with the Mining Research Division of the Mineral Resource Authority of Mongolia (“MRAM”), over Exploration License 6155 which covers the high grade gold deposit known as Toordogiin Shil.
The agreement requires and permits Gutain Davaa LLC to undertake the following:
i) Carry out further metallurgical testing, principally of the un-oxidized mineralization. This is likely to require drilling in PQ size core to recover adequate fresh samples for testing.
ii) Complete a detailed Environmental Impact Assessment.
iii) Have a proper hydrological survey completed by a recognized and qualified professional organization.
iv) Identify associated and potentially deleterious minerals and provide plans for dealing with them in concentrate and tailings.
v) Carry out further exploration work.
vi) Provide proper mine plans defining proposed mining areas and a schedule for mining.
vii) Complete a feasibility study.
viii) Obtain various consents to establish the mining operation from government authorities and from local authorities. Consent from the local authorities to establish a processing plant outside the existing exploration license area is required.
The agreement also provides for regular progress reports to be made to MRAM and if deemed necessary for MRAM to inspect the work. The agreement expires on October 2, 2014. Under the existing Mongolian mining legislation in certain circumstances an extension of up to one year may be granted to the license holder to complete work in progress.
Our Mongolian partners are currently engaging in discussions with the local community, explaining the nature and potential impact of the project and outlining ways in which the community can be involved in the activities of the companies to their benefit. We expect that this type of activity will be a very important stage of the project’s evolution as good relations with the local community will be vital in obtaining their support for the development of the project.
On Behalf of the Board of Directors
Meritus Minerals Ltd
Terence E Bates, CEO and President