Green Technology Solutions, Inc., (GTSO) has hired SGS Mongolia Minerals to analyze the mineral content of a new mining property it wants to explore in Mongolia.
The news comes barely a week after Green Technology signed a joint venture agreement with Rare Earth Exporters of Mongolia (REE) to explore and export the mineral, whose value has seen a sudden surge after China all but stopped mining this lucrative mineral.
GTSO and REE are preparing to explore a rare earth mineral deposit in Mongolia’s Tuv province. The joint venture agreement even includes the right of involving scientists and other experts to evaluate the site’s rare earths mining potential.
John Shearer, JTSO’s CEO and president, said that SGS will study the property’s mineral content as part of the joint venture’s ‘due diligence’.
“We’re employing this laboratory to analyze the new site’s properties and let us know how many parts per million of the soil comprises rare earth elements,” he said. “It is our hope that the results of their analysis will conclude that mining this site for rare earths will be an economically feasible endeavor.”
Mongolian trading and mining company Ar Erkhes owns the rights to mine the property in Tuv. If the mineral analysis reports from SGS are favorable, GTSO and REE could seek a definitive agreement with Ar Erkhes to finance, market and develop the mine.
“If the presence of profitable amounts of rare earths is confirmed at this property, we will want to get shovels in the ground there as quickly as possible,” Shearer said.
Ar Erkhes’ property is the second site inside Mongolia’s Tuv province that the joint venture has explored. Last week, GTSO and REE signed a land lease agreement for a mineral-rich property in Tuv’s Erdenesant district.
The joint venture has targeted Tuv as a prime strategic location for mining activities due to its proximity to Mongolia’s capital, Ulan Bator. The city is Mongolia’s road and rail hub as well as the home of the joint venture’s Mongolian transportation office.Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan’s articles, please visit his columnist page.
Edited by Tammy Wolf