AKIPRESS.COM - Guildford announced that on July 9, its Mongolian subsidiary Terra Energy LLC (Terra Energy) has been granted two new exploration licences by the Mineral Resources Authority of Mongolia, 4-traders reports.

The Baruun Termes exploration licences NE-025961 and NE-025966 are prospective for potash and complement Terra Energy's existing assets in Mongolia. The licences are located in close proximity to the company's current coal exploration licence in Uvs province of North West Mongolia.

The two licences, totalling 81.71 km2, have been granted for a term of 3 years. Following the 3-year term, a further 3 years can be granted in stages up to 12 years, following approval by the Mineral Resources Authority.

Baruun Termes is located in the Uvs province of North West Mongolia, approximately 50 km north of the provincial center Ulaangom. The provincial center is accessible by road and a regular aircraft service from the Mongolian capital Ulaanbaatar.
The sealed road, which transects both licences, provides access from Ulaangom to the Guildford Coal.

The two secured exploration licences will be part of the company's Uvs Project, bringing the total project area to three exploration licences and 193.4 km2.

The Baruun Termes licences are located close to a major 220Kw power line, which runs from Russia to Mongolia. The sealed asphalt road between Ulaangom and Borshoo provides easy access to the strategic border crossing of Borshoo and the city of Kyzk in the Tuvan Republic of Russia. Access into Russia leads to railways, which service Vladivostok port.

The Uvs Nuur basin in North West Mongolia is host geologically to mixed sedimentary and volcanic units. The resource target is stratabound evaporite bearing salts containing potash and lithium brine. The most valuable evaporite mineral is sylvite, which is also known as potash, or potassium chloride. It is used as a fertilizer ingredient and has a number of other industrial uses.

Guildford Coal has recently transitioned from being an explorer to miner. Production at the Baruun Noyon Uul coking coal mine in the South Gobi Mongolia successfully restarted in late 2014. Guildford has recently secured offtake agreements with 2 end-users in China. The company's goal is to become one of the largest and highest quality coking coal producers in Mongolia, providing exceptional value for its steel-producing customers.