Business
Update on the Ereen Licence S
Update on the Ereen Licence S.
About this update from Central Asia Metals Plc
[{"type":"text","content":"\n RNS Number : 5524X Central Asia Metals PLC 08 December 2010 \n \n\n8 December 2010\n \nCENTRAL ASIA METALS PLC\n \n(\"Central Asia Metals\" \"CAML\" or the \"Company\")\n \nUpdate on the Ereen Licence Status in Mongolia\nCentral Asia Metals (AIM:CAML), a mining exploration and development company focused on base and precious metals in Central Asia, would like to provide an update on the status of its Ereen licence located in Mongolia. \nOn 17 November 2010 the Government of Mongolia published a list of 254 mineral licences in the country that they intend to revoke on satisfaction of certain events, the most relevant of which is a compensation payment to the owners. This list is pursuant to the Water and Forest Law passed in July 2009 by the Mongolian Parliament, whereby they enacted legislation that would prohibit mineral exploration and mining in water basins and forest areas, and provided for the revoking of licences already issued in such areas. The legislation allows for the termination of such a licence only after the government has paid compensation. This payment will be based on previous work, fees and taxes incurred by the owner.\nAll the 254 licences included in the recent list relate solely to 'placer' gold occurrences which are commonly defined as 'alluvial deposits containing heavy minerals such as gold'.\nCAML has, within its portfolio of mineral properties in Mongolia, three areas of mineral interest, including Handgait, Alag Bayan and Ereen. The Ereen gold deposit comprises five (5) mining licences; three (3) of which have been included in the list of 254 licences, referenced above. The licences listed include MV-15617, MV-15618 and MV-15619 which were transferred to mining licences in June 2010 with a 30 year term. Two smaller mining licences, 2616A and 4265A, have not been included in the list and it is estimated that these contain approximately 50% of the known mineral resource. The remaining 50% lies predominantly within licences MV-15618 and MV-15619 from which the Company has been left with 19.4 hectares and 22.3 hectares of ground area respectively. These areas correspond very closely to the plan area of resource within the listed licence areas for revocation. CAML is actively pursuing clarification from the government authorities that the areas no...