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Gold/Mining/Energy : Mongolia Gold Resources

MGR 21.56

+0.3%

12:59 PM EST

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To: Bearcatbob who wrote (1834)	2/12/1998 6:34:00 PM
From: Dave R. Webb	Read Replies (2) of 4066

Mill liners can be replaced very quickly by an experienced crew. We had budgeted 7 to 10 days to remove the old liners, clean-up, and install the new liners. The new liners were being fabricated by the Erdinet Mine. Templates were made and fabrication commenced in December, with a completion date in late January. I have received notice that the fabrication is complete. We also want to expand our tailings storage capacity. The original design was to allow for a small start-up, and easy expansion. Currently, more detailed engineering plans are being drawn. Ore reserves can be recalculated now without having to estimate mine dilution. It can be measured. There are other aspects that are being reviewed in light of experience ie. cost of fuel, power, water, number of employees required, schedules. Dave

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