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The area that we draft a project is transferred to us in ***5 by state order.  The area is located in the near border of Umnugobi province and Khankhongor sum and it is spindled n the southern part of center of the province. Transportation among those sum and settlement unit is available in anytime of year. This area belongs to VII earthquake zone, valley at the ***5 up to ***3m and hill relief dominated.
The coordinate of area:
1. **4° *0’ *0”       *3°  *5”
2.  **4° *6’ *0”      *3° *7’ *5”
3.  **4° *6’ *0”      *3° *4’ *0”
4. **4° *4’ *0”      *3° *4’ *0”
5.  **4° *4’ *0”      *3° *8’ *0”
6. **4° *7’ *0”           *3° *4’ *0”
7. **4° *3’ *0”            *3° *0’ *0”
8. **4° *0’ *0”      *3° *0’ *0”
9.  **4° *0’ *0”      *3° *3’ *0”
*0. **4° *0’ *0”           *3° *3’ *0” 

Total size of area: ****0 hectares

The area is from Ulaanbaatar city **0 km, from the south of Dalanzadgad city *5 km. From ***6 to ***9 our company has made geophysics investigation and drilling works in the area.

THE GEOGRAPHY AND ITS ECONOMICS

The licensed area belongs to Gobi desert zone and situated ***0 up to ***0m above sea level. There are up to ***0m high mountain range of Altai as Gurvansaikhan, Servei, Noyon bogd, Tost, Nemegt, Altana uul, Gilbent and famous Galba, Borzon, Zeemeg, Zag and Suuj Gobi which lasts several **0km.
Steppe land which is cut by several hundreds of meter long dry pebbles, its bias side has less rocks but much hilly, is dominated here. Several tens of km wide, several hundreds of km long stretched valleys are occurred.
There are pebbles sourced from nearby elevation and mostly hills without top, and narrow parts plently occurred. The depth of pebble is **3m.
There is no river and stream with regular water, but there comes several hundreds of km long rivers and streams which dry up later during rainy years.   Only well water is used for human and animal drinking water. The wells were digged near the dry pebble and the edge of lake of the Quarternary deposits. Well water level is **3 m, sometimes **7m. Water source is 0,**0,5 m/s. For the soil, it is related to the gobi brown soil zone of Great Gobi region. The wind play the main role for soil forming. The wind activates air exchange of the soil and increases steam volume; it affects the soil to get dried and also blows the cover part of the soil and causes soil erosion.
Mongol-uvst /Mongol-grass/, Mongol-uvst-hazaar uvst plants of northern gobi’s desert steppe grow in the desert steppe; however Mongol uvs-taanat, budargan, bagluurt herbs dominated here. As there is low humid, cover of plants is less, woody and perennial plants grow here and the plants are nutritious and significant for livestock pasture.
The population density is small. There is telecommunication baraue connects aimags and soums and also possible to contact Ulaanbaatar by portable and moveable telephones.
The voltage which is passed from Dalanzadgad city to Khurmen is *2 km far from the licensed area. Average temperature of year is **9, **0**5° in June,  **5°**0°C in January, **3m precipitation drops in year.

HISTORY OF GEOLOGICAL EXPLORING

Russian researchers Arhimandrit Palladii /Kafarov/, A.A.Prjevaliskii, A.A.Chernov and B.A. Obruchev did tour research when they passes through the area. From those, V. A. Obruchev firstly determined this area’s geological research in his research work named “Geological brief summary of Kiagt to Khaalgan road.
Between ***2 and ***4, Z.A. Lebedeva investigated geological formation of Gurvansaikhan Mountain, and A.A. Maccaveev did area’s geological study in ***5 and ***6 as well, paleontology expedition class which lead by I.A. Efremov has discovered dinosaur, turtle, crocodile, fish and fresh water spineless animals fossil from the south of Gurvansaikhan mountainous range of Gobi desert. 
But from ***6, territory of this area was involved in geological comprehensive research work and until now, many works was taken within the area.
From ***0, petroleum geological research was commenced in Mongolia, especially in Gobi region and herein by B.S.Volkhonin/***0/, Yu.A. Shikhov/***2/ and B.I. Danilov/***2/ completed petroleum exploring work later. 
*0 percent of total area sheeted by minerals and geological mapping by the 1:*****0 scale and as result of work, this area’s geological formation, mineral type, gene, spreading law was deeply investigated and prospecting ore region, district and part was discerned and assessment taken to area. Researcher S. V. Rujentsev and G. Badarch accomplished tectonic research by the line of Mongolian-Soviet geological joint expedition around Bulgan mountainous range and Agui Mountain and determined ‘indocene’ and ‘bariss’ folding system formation and its peculiarities of development.  Tectonic location and peculiarities of development of general position was certainly made the contribution to the research work of N. A. Marinov, O. D. Suetenko, L.P. Zonanshain, A. B. Dergunov, N.S. Zaitsev, B. A. Khasin, O. D. Syetenko, and B. B. Yarolyuk, O. Tumurtogoo and G. Badarch.
B. Damdinjav and A Delgersaikhan made geological mapping at the 1:****0 scale in the licensed area and its surrounding area and made large contribution on geological and mineral research.
Mapping work at the scale 1:****0, exploring-mapping work was done in specific area and stratigraphy, tectonic, magmatism and mineral precise research was carried out. In recent time, many companies are carrying our exploring-prospecting work by the own capital. In ***9, when the Bat-erdene and Munkhtogoo made a geological tour in this region, bigger deposit as Tsagaan tolgoi and Buduunii hyar was discovered in this area. Umnugobi’s coal basin is consist of 4 coking coal region /Gurvan tes, Tavan tolgoi, Nalihiin and Nomgon /.
With regard to geological formation, Umnugobi coal basin is directly related to upper Paleozoic Orogene structure.
Precise exploring work was completed at the Tavan Tolgoi coal deposit and Olon ovoot gold deposit and those deposits which are under the exploitation now.