Mongolia is one of the world’s last remaining gold frontiers. The country stretches across an enormous land mass – larger than all of Western Europe combined. As a result of its unique geology, this land mass is rich in precious metals and other valuable minerals. However, due to geographic isolation and the legacy of Soviet control, Mongolia’s gold sector received little investment during the 20 th century. As a result, many of the country’s best gold deposits have been left unexplored and undeveloped.
Mongold was founded with a vision of seizing the obvious opportunity presented by the Mongolian gold sector. Out of dozens of deposits, Naran Mandal was selected as Mongold’s flagship project because it had more than 60 years of historical geological work carried out by top experts from Europe, Russia and Japan. Moreover, the deposit had been profitably operated in the early 2000’s. In 2014, an investment agreement was signed and Mongold became the sole owner and operator of Naran Mandal; officially entering the Mongolian gold space.
Over the course of next few years, an underground mine was developed on Vein 1 and a processing plant was constructed on the Naran Mandal license. A small local workforce was recruited and the operation began trial production activities in late 2017. Since 2017, mining operations have expanded year-on-year. Mongold acquired several exploration licenses and successfully completed its inaugural JORC compliant resource on the existing operation. New mining operations commenced on Vein 10 in 2021 and on Vein 2 in 2022. As 2022 draws to a close, the Naran Mandal Gold Operations now employs more than 500 full time staff and contractors, and Mongold has become the largest employer and economic contributor in the region. With recent additions to the senior management team, improvements to mining methods progress on transformative M&A activity and a planned upgrade to the processing plant, Mongold’s vision of becoming a major producer in the Mongolian and Central Asian gold sector is being realised.
Mongold’s strategy for the next two years consists of:
- Continuing to increase production and exploration activities onsite at Naran Mandal Gold Operations.
- Exploring and building up resources on its two most promising exploration licenses.
- Closing the most advanced deal in its Central Asian M&A pipeline;
- Looking for additional acquisitions to increase the size of the company and diversify risk.