AMG Mining Group

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Altai is accessible via sealed roads or by regular commercial flights from Ulaanbaatar, with a duration of about two hours. The Project is connected to Altai by a well-maintained gravel road between Altai and Taishir Soum, which is located about 45km to the north of the Project. The property is crossed by high voltage powerlines originating at a hydropower station on the Zavkhan River of Taishir.

The Altai Gold (Altangadas) project is situated in the northern foothills of Khan Taishir Mountains at an elevation 1,970 to 2,090 m above sea level (asl) in the southwest sector of the licence area and on the margin of the Zavkhan basin, with elevations 1,860 to 1,910 m in the northern and eastern sector of the licence.

A major water reservoir exists above a hydropower plant on the Zavkhan River, about 45 km to the northeast of the Project. Several water bores with tanks and troughs are located across the licence area and provide water for livestock year-round.

Local vegetation is sparse steppe grasses, roseroot, and -in the foothills- Gentiana.

The climate conditions are hot dry summers (40°C in July), long cold winters (from November to February, with average daily temperatures ranging from -17 to -21°C), and strong winds in the spring and autumn. Annual precipitation averages approximately 200-300 mm, of which 80 mm is snow cover in winter.

The local infrastructure is reasonably well developed due to the licence area’s proximity to Altai. The Altangadas licence is situated a few kilometers north of the asphalted road connecting the city of Khovd, capital of the Khovd Province, located 420 km to the northwest, to Altai and the city of Bayankhongor approximately 390 km to the east. The licence is crossed by a well-maintained unpaved road from Altai to Taishir Soum, the local administrative centre, 45 km to the north. Altai is a province administrative centre with all services and regularly scheduled commercial flights. The local industry consists of herding, farming, and tourism. Mobile phone reception is limited on the property. High voltage power lines cross the property, extending from the 11 MW hydropower plant on the Zavkhan River at Taishir and connecting with the national grid of Altai.

The hydropower station of Taishir consists of a 190 m tall concrete gravity dam and a reservoir with a capacity of about one billion cubic metres of water at full supply level (Linard and Hansen, 2013). A plan is in development to build a 54 km pipeline to provide potable water to Altai. Any future milling/processing facility could potentially use water from the Taishir Reservoir, possibly involving only a short pipeline link from the planned Taishir-Altai pipeline. Alternatively, water may be present at a relatively shallow depth within or beneath the Quaternary cover on the eastern and western thirds of the property.

We have now a land size of 7799 hectares mining licence which was converted from exploration licence in January 2022. The mining licence is valid for an initial 30 years, with an expiration in 2052. After this initial period, the licence can be extended up to 70 years.

In the next 5 years, we intend to do a high-intensity exploration covering the whole licence and expect to have a highly favorable JORC resource by then. We have divided the tenement to 4 zones, which have different minerals for us to work on.

Our vision is to eventually build a sustainable mining town due to its proximity to Altai town. This mining town will consist of a complete mining industry with commercial lots, residential houses, schools, hospital, food market, and entertainment outlets.

HIGHLIGHTS

Altai Gold (Altangadas) project is located within a prospective gold-mineralized environment created by the conducive geological settings. Many exploration licenses have been issued in the surrounding areas. Khan Altai, a gold venture located about 80 km southeast of Altai City (40km southeast of Altangadas licence), has been developed into a viable mine with a reported gold resource of 85.4 tonnes. A CIL (carbon-in-leach) plant is already set up to process the gold ore.

A significant amount of exploration work has been carried out over the area including geological mapping, rock-chip sampling, diamond drilling and laboratory analyses. Four main targets have been identified, namely:

a. Greisen Target

b. Placer Gold Target

c. Orogenic Gold Target

d. Coal Target

To date, only the Greisen Target and the Placer Gold Target have been investigated by drilling.

Recent drilling by Realxoin Resources , comprising 21 holes and 5360 meters sunk over the Greisen Target confirms that the area is gold-mineralized. It is opined that the gold mineralization is deep-seated, and hence further work on this target is needed.

Extensive pitting amounting to 157 holes over the Placer Gold Target returns several interesting gold values. The blocky nature of the sediments and gold grains recovered from the Placer Target suggests that the gold source is nearby. Since the placer valley drains the Orogenic Gold area, the latter’s gold potential is implied. Many grab samples returned with high gold values of more 6 g/t and there is one which is as high as 138 g/t.

Within the Orogenic Gold Target, numerous quartz veins, some with strike lengths of between 200-500 m, and some as vein-swarms, were documented. A few of these quartz veins were previously worked upon by artesian miners. Even though only limited sampling of the quartz veins was done, some encouraging gold values grading up to 0.8 g/t were recorded.

In late 2022, Realxoin Resources commissioned Geofile Engineering LLC to undertake a magnetic and pole-dipole electrical survey over the project site. Three magnetic anomalies were delineated, and they correlate well with the high chargeability and low resistivity anomalies derived from the pole-dipole electric survey. These magnetic anomalies are deemed to be created by underlying haematite/magnetite and other base-metal sulphide.

The Competent Person opines that two mineral targets are very encouraging and deserve immediate attention, namely:

a. The magnetite anomalies: a large iron ore deposit is indicated.

b. The Orogenic Gold Target: possess good potential for gold mineralization.

Currently, a comprehensive Altangadas geophysics have been mapped out and completed in August 2023 together with a detailed 1000 rock samples. A planned 2000 m, 7 holes drilling program already mobilized for September this year and will be observed by SRK Mongolia, a JORC consultant company. We hope to hit some good high value hard-rock gold and have an attractive indicated reserve.

There is also a Mongolian potential gold resource estimated and is based solely on the exhaustive research carried out by Mr O Chuluun, a state-certified consultant engineer/geologist as well as the former Director of Geological Resource Department of Mongolia. Mr Chuluun identified a total of 5 gold mineral zones with total potential placed at 29.2 tonnes of gold, as presented below:

                                                              Gold Mineral Potential (Kg)  

      Khangina     15,210kg

      Gashuun          930kg

      Tsakhiurt        550kg

      Tsoin Tolgol  9,750kg

      Jinger              263kg

      Greisen          1,430kg

      Tomort          1,079kg

                 Total 29,212kg

In summary, Altai Gold (Altangadas) project constitutes an excellent prospect, and has potential for developing into a highly profitable mine. Hence, a further investigation work is highly recommended where these work includes exploratory drilling of both the iron ore and the gold targets, drill-core sampling and assays, laboratory test-works. The company intends to public list it’s shares in the Stock Exchange to raise sufficient funds for a massive 40,000 to 50,000 meters drilling exploration for 2026 and expect development and production to be in 2028.