Mongolia Weekly: 4 April 2011 - Eurasia Capital

AUS$Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Jan-11Feb-11Mar-11Mongolia Weekly (March 28-April 1, 2011)April 4, 2011 (Monday)Guildford has a portfolio of exploration areas inQueensland, Australia, and wants to gainexposure to the opportunities in Mongoliathrough South Gobi (4 license areas) and MiddleGobi (2 license areas) projects with a total of sixlicense areas. The company is aiming atproduction with a mining license to be obtainedon South Gobi project by the end of 2011.Guildford’s Non Executive Chairman, CraigRansley stated, “the Mongolian projects havepotential large scale thermal and coking coalprospects and represent an opportunity forGuildford to become a coal producer within 12months as the South Gobi project is located closeShare PerformanceSource: Bloombergto the Chinese border station of Ceke where coal from Mongolia is already trucked into China.”Following the news, Guildford shares soared to AUS$0.945 a share, 25.2% up from March 30 close price.10.90.80.70.60.50.40.30.20.1Xanadu Acquires Porphyry Copper Project in MongoliaXanadu Mines Ltd (ASX: XAM) announced on March 30 that through its subsidiary, Xanadu MetalsMongolia LLC, it has acquired 100% ownership of the Mogoin Gol porphyry copper project in northernMongolia. The project is located approximately 200 km northwest of Ulaanbaatar in Bulgan Province,and approximately 40 km northwest of Erdenet porphyry copper-molybdenum deposit, the largestoperating copper mine in Mongolia with a link to the Trans Mongolia railway.The relatively unexplored Mogoin Gol license area covers 488 sq km with limited, relatively shallowhistorical drilling. High levels of anomalies of Cu, Mo, Au, Ag, and Ba were identified within a larger 7 sqkm are during the previous exploration between 1999 and 2004, and the drilling failed to penetrate theexposed alterations.The company reported that it continues aggressively the dual exploration efforts in copper and coal.Geological mapping is in progress throughout the Mogoin Gol license area, and according to Xanadu,there is a strong possibility of additional mineralized porphyry copper target discovery within the area.Xanadu plans to commence induced polarization, ground magnetic and gravity surveys shortly, and anaggressive drilling program during the late 2011 field season.Xanadu’s Chairman, Brian Thornton said, “Following extensive due diligence, it is Xanadu’s view that theMogoin Gol project is one of the best untested porphyry copper targets in Mongolia, having beensubjected to minimal drill test almost a decade ago. Xanadu has continued to evaluate copper goldtargets throughout the country, but Mogoin Gol stands out as an outstanding opportunity against allcriteria, particularly its prospectivity and location to rail and established infrastructure.”Hoosniddin Hakimovhoosniddin.hakimov@eurasiac.comwww.eurasiac.com 12