Following the initial JORC of 32.8Mt, Foster Stockbroking released a Broker’s Analysis Report recommending a speculative buy with a price target of $0.90. This was based on the 2011 drilling campaign at Bayantsogt 35 holes (approx. 13000m) for 32.8Mt.
The current campaign at Dund Bulag and Bayantsogt has completed 41 holes for 15,000m so far. Results are due by the end of September (this coming week).
Mongolia’s Largest Drilling Program Well Underway at the Selenge Iron Ore Project
- The 2012 Selenge drill program is progressing rapidly and successfully with eight drilling rigs currently in operation. - Almost 15,000m of resource drilling has been completed so far this year. - 28 new holes have been completed at the Dund Bulag Prospect and 13 new holes at the Bayantsogt Deposit thus far. - Drilling at the Undur Ukhaa Prospect is due to commence within the next month. - The first samples have been delivered to the lab for assay with results due by the end of September.
FOSTER STOCKBROKING EQUITY RESEARCH Metals & Mining 12 April 2012 Haranga Resources Ltd (HAR.ASX) Iron ore in Mongolia with nearby infrastructure in place.
We initiate on Haranga Resources Ltd (HAR.ASX) with a SPEC BUY recommendation and initial price target of $0.90/share.
Exploration to date at flagship Selenge Project highlights potential for iron ore operation utilising existing infrastructure: HAR’s primary focus is on exploration for iron ore at the Selenge Project (HAR – 80%) in Mongolia, with drill results to date highlighting the potential for an operation utilising existing and nearby infrastructure (two rail spurs located within 40kms leading to the Trans Mongolian Railway) and a ready market south of the border into China. Following the maiden 2011 drilling program of >13,000m, HAR have released an initial JORC of 32.8Mt at 24.4% Fe at the Bayantsogt prospect and exploration target of 120Mt – 250Mt at the larger Dund Bulag prospect.
First Mineral Resource for the Selenge Iron Ore Project - Maiden Resource and Exploration Target represent major milestones for Haranga Resources Limited. - An initial JORC Code compliant resource has been defined at Bayantsogt, one of four primary iron ore targets within the Company’s Selenge project area in Mongolia. - The total inferred resource is 32.8Mt of iron ore at an average grade of 24.4% Fe based on a 15% Fe cutoff grade. - This initial resource is based only on the first pass 35 hole drill program at Bayantsogt in 2011.
HAR Price at posting:
25.0¢ Sentiment: Hold Disclosure: Held
