The Oyut Ovoo prospect is a high-grade iron ore and cooper mineralization located 270 kilometers west of Choir Station, a station along the Trans-Mongolian Railway.
The main property comprises an area of 12.01 square kilometers in south-central Mongolia. The group has recently completed a technical valuation exercise on the "First Mine Area" of Oyut Ovoo mine, measuring 1 square kilometer out of the total concession area of 12.01 square kilometers. The Independent Technical Report ("ITR") completed by SRK Consulting China Limited estimated a total JORC-equivalent Measured, Indicated and Inferred resources of 148.9 million tonnes of iron ore resources and 174,000 tonnes of copper resources in the First Mine Area alone. This area covers approximately 8.33% of the total mine area. According to the ITR completed by SRK Consulting, the First Mine Area of Oyut Ovoo mine has iron ore resources with an average grade of approximately 40% and copper resources with an average grade of approximately 0.51%.
Mining of the First Mine Area will commence in the second half of 2010 and the Company expects to produce over 1 million tonnes of iron ore products in 2011.
North Asia Resources has entered into a Transportation Agreement, an Off-take Agreement and a Choir Docking Agreement with China Railway Mongolia in November 2009. According to the terms of the Transportation Agreement and the Off-take Agreement, China Railway Mongolia will purchase no less than 1.5 million tonnes per annum of the mine's output at prevailing market prices and provide transportation services for the mine's output of no less than 2.5 million tonnes per annum to Erenhot. The term of both the Transportation and Off-take agreement is for an initial period of ten years.