SOURCE: Trendfield Holdings Ltd.

Trendfield Holdings Ltd fully owned subsidiary THL Mongolia Ltd acquires a 70% shareholdings in KMNG

March 14, 2011 09:00 ET

Trendfield Holdings Limited Believes That Its Mongolian License 13602X Has the Potential to Be a World-Class Epithermal Polymetallic (Ag, Au, Pb, Cu) Deposits

BEIJING--(Marketwire - March 14, 2011) - In March 2010 THL Mongolia Ltd. purchased 70% of KMNG LLC (KMNG) holdings. KMNG is located in Ulaanbaatar, Mongolia and owns 3 exploration licenses 13602X, 13603X and 13408X. These licenses are located in the South Gobi Province at the southern border of Mongolia, in the territories of Hanboulag, Khanbogd, Sayshand and Dalanazadgad. The cumulative area of the licenses is 1935.5 km2.

KMNG's geological mapping program took place over a three month period (from July 19, 2010 to 25 October, 2010). This phase resulted in a collection of 491grab samples. The grab samples were submitted to Act-labs Mongolia and analyzed for Au, Ag, As, Cu, Mo, Pb, Zn and Sb contents. In total, 4 338.45 line-km of geological traverses were completed over the 3 licenses during the first phase of exploration works.

The 3 licenses lie within the southern Mongolian Paleozoic tectonic superblock. They overlap on the Khutag uul cratonal block and the Sulinkher accretionnary wedge. The stratigraphy consists of Neoproterozoic Limestone and quartzite, trusting over the Lower to Upper Devonian volcano-sedimentary sequences and intruded by Middle to Upper Devonian Khatanbulag intrusive complex. The lithology of intrusive rocks consists of gabbro, diorite, quartz diorite, granodiorite, biotite granite and leucogranite. Numerous dykes of granite porphyry, syenite porphyry, rhyolite porphyry are widely distributed within the Khatanbulag intrusive complex. Flat lying Cretaceous and quaternary sediments deposited in small basins cover a large proportion of Nomgon Uul and Shand Uul licenses. 

The hydrothermal system consists of clay alteration, widespread zones of limonitization, structurally controlled extensive quartz veins, frequently occurring manganese oxides and galena, little pyrite and epidote. Calcite veinlets are usually observed along quartz veins. 

The 3 exploration licenses chosen by THL were initially selected based upon their impressive polymetallic historical geochemical anomalies associated with favorable geological, tectonic and structural settings. These favorable criteria were confirmed by the results of recent exploration works, especially in the Khairkhan Uul tenement (license 13602X). This permit itself holds potential for different types of mineralization, and as a result, is sectioned into 3 primary targets and other prospective zones.

The Altan Khudag target (Northeastern area of the license 13602X) is highly prospective for polymetaliic epithermal Ag, Au, Pb, Cu mineralization. These occurrences have many similarities with Low-sulphidation epithermal Au-Ag mineralization and seem to be closely related to an ellipsoidal granitic intrusion of Late Paleozoic located in the NE end of the license. This zone is our key target for the discovery of a polymetallic epithermal Au, Ag, Pb, Cu deposits.

The Dergehiin Khuda target located in the central region of the license 13602X has potential for porphyry Cu, Sn, W type mineralization as suggested by the presence of numerous small veins mineralized in wolframite, Tin and copper hosted within a shallow porphyritic intrusive body of irregular shape.

The southern region of license 13602X has potential for skarn related mineralization, as suggested by the identification of skarns along the contact of a late Permian sub-volcanic intrusion with Devonian limestone. A magnetite rich body of 350 m long and 2.6 m wide crops out within this target.

Based on geological, structural, and alteration mapping combined with assay results of grab samples THL believes License 13602X has the potential to be a world-class epithermal polymetallic ( Ag, Au, Pb, Cu) deposits. A 3.5 km long and 700 m wide zone has been clearly defined to contain high grade Silver-Lead, Arsenic, Stibnite and moderate grade gold, copper and zinc in grab samples. The average silver grade of all grab samples randomly collected from this zone is about 200g/t. In this type of mineralization, gold and silver grade usually increases at depth within the ore body. Very high and consistent grades are therefore sought in drill intercepts.

This area has been prioritized for the next step of exploration work including systematic soil sampling, ground geophysics, trenching and an initial exploratory drilling. The next phase of exploration will begin spring 2011.

THL Mongolia Ltd. is fully owned subsidiary of Trendfield Holdings. Trendfield Holding is a private mining exploration company with offices in Beijing, Hong Kong, Niamey and Ulaanbaatar.

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