Erdene Commences Drill Program at Bayan Khundii Gold Project
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Commences Drill Program at Bayan Khundii Gold Project
Halifax, Nova Scotia – April 11, 2018 - Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company"), is pleased to announce the commencement of the 2018 drill program at its
100%-owned Bayan Khundii Gold Project (“Bayan Khundii”) in southwest Mongolia.
“Drilling commenced today on the first phase of the 2018 program which will initially focus on the
new North Midfield Zone where late 2017 drilling returned the highest grade gold zone at Bayan
Khundii since discovery,” said Peter Akerley, Erdene’s President and CEO. “ This drilling will test for
extension and continuity of structurally -controlled high-grade gold feeder zones in multiple locations
and will be followed by gradual step -out drilling to define the perimeter of the Bayan Khundii gold
system in advance of a late Q3-2018 maiden resource estimate. The Bayan Khundii drill program will
be followed by drill testing of more distal targets at our neighbouring Altan Arrow, Khundii North and
Ulaan projects later in Q2.”
Bayan Khundii Drill Program
The Company’s Q2 -2018 drill program will consist of a projected 5,600 metres in approximately 25
diamond drill holes, with the following three objectives:
Test high priority structural targets, principally within the North Midfield and Midfield zones,
based on the structural interpretation and greater understanding of controls on mineralization
completed in Q4 -2017 by Dr. Armelle Kloppenburg , which led to the discovery of the ultra
high-grade intersection (2,200 g/t gold over 1 metre) in hole BKD-231;
Complete closer-spaced d rilling within the Striker, Midfield, and North Midfield zones to
establish stronger continuity of gold mineralization within very high-grade gold domains that is
anticipated to lead to higher levels of confidence in their definition and associated gold grades
for incorporation in the Company’s Q3-2018 maiden mineral resource estimate; and,
Test select areas within the larger 1. 2 kilometre trend that demonstrate good potential for
establishing additional extensions to mineralization or to identify new mineralized zones.
North Midfield Zone
In January 2018, the Company announced the discovery of ultra high-grade gold mineralization in the
North Midfield Zone, where hole BKD-231 intersected 2,200 g/t gold over 1 metre, within 14 m etres
of 158 g/t gold . This intersection confirmed excellent continuity down -dip from earlier holes that
included:
BKD-110 (30 metres north of BKD-231): 1 metre of 115 g/t gold and 1 metre of 108 g/t gold
within 20 metres of 7.2 g/t gold; and
BKD-111 ( 30 metres northwest of BKD-231): 1 metre of 44 g/t gold and 1 metre of 33 g/t
gold within 25 metres of 5.3 g/t gold.
A comprehensive, independent s tructural study was completed at Bayan Khundii in Q4 -2017 that
assisted with the targeting of hole BKD -231, which is thought to be proximal to where major, deep -
seated structures have intersected the northeast-trending hanging wall of the gold system . The Q2-
2018 program will include follow-up drilling in this new area to establish continuity and potential
extensions of the high -grade mineralization, along with the testing of additional structural targets
within the North Midfield Zone.
Midfield Zone
In 2017, the Company established strong continuity of high -grade gold minerali zation within the
Midfield Zone. This dr illing confirmed that mineralization is more proximal to surface (locally 24
metres vertical depth) and also confirmed greater depth of gold mineralization, with results including:
BKD-92: 2 metres of 113 g/t gold within 72 metres of 4.0 g/t gold;
BKD-98: 2 metres of 192 g/t gold within 80 metres of 6.0 g/t gold;
BKD-99: 4 metres of 69 g/t gold within 56 metres of 6.1 g/t gold;
BKD-150: 2 metres of 53.6 g/t gold within 17 metres of 8.2 g/t gold; and
BKD-230: 3 metres of 36.8 g/t gold within 18 metres of 7.2 g/t gold.
The Company intends to complete closer-spaced drilling within the Midfield Zone to establish stronger
continuity of some of these very high -grade domains in order to provide higher levels of confidence in
domain definition and overall gold grades for incorporation in the anticipated Q3-2018 maiden mineral
resource estimate.
Striker Zone
While all 51 holes within the Striker Zone have intersected anomalous gold mineralization,
approximately 70% have returned intervals of greater than 10 g/t gold, including up to 306 g/t gold .
Recent 2017 drilling returned:
BKD-196: 1 metre of 43.1 g/t gold within 22 metres of 2.4 g/t gold;
BKD-222: 1 metre of 139 g/t gold within 23 metres of 6.7 g/t gold; and
BKD-227: 2 metres of 19.6 g/t gold, 1 metre of 111 g/t gold and 1 metre of 40 g/t gold, within
61 metres of 4.2 g/t gold.
High-grade drill results from the first phase of drilling in Q4-2015 and in 2016 included:
BKD-01: 1 metre of 187 g/t gold within 7 metres of 27 g/t gold;
BKD-10: 1 metre of 167 g/t gold within 35 metres of 5.7 g/t gold;
BKD-17: 1 metre of 81.7 g/t gold and 3 metres of 49.4 g/t gold within 63 metres of 5.3 g/t
gold;
BKD-44: 1 metre of 93.1 g/t gold within 8.3 metres of 14.7 g/t gold;
BKD-49: 2 metres of 62.1 g/t gold within 71 metres of 3.06 g/t gold;
BKD-77: 1 metre of 306 g/t gold and 1 metre of 30.7 g/t gold within 65 metres of 6.3 g/t gold;
BKD-84: 1 metre of 101 g/t gold, 1 metre of 16.1 g/t gold, and 1 metre of 19.7 g/t gold within
36.7 metres of 5.0 g/t gold; and
BKD-86: 1 metre of 94.8 g/t gold and 1 metre of 15.2 g/t gold within 18 metres of 7.1 g/t gold.
The Company plans to complete additional drilling within the Striker Zone to establish stronger
continuity of some of these high-grade domains.
* All reported intervals in this news release are not true width. At this time, there is insufficient data
with respect to the shape of the mineralized system to calculate true orientations in space. They
represent drill intersection widths from holes drilled at a dip of -45 to -85 degrees and oriented to the
north-northeast. The Bayan Khundii mineralization is interpreted to be moderately dipping
(approximately 40 to 50 degrees to the southwest).
Regional District Exploration
Over the past several years Erdene has discovered a new gold district (“The Khundii Gold Distri ct”) in
southwest Mongolia that includes seven targets, two of which are considered significant prospects for
development, which are being advanced toward a global mineral resource estimate in Q3-2018; Bayan
Khundii and Altan Nar.
During 2018, in addition to drilling at Bayan Khundii, the Company intends to complete additional
drilling at its early -stage Altan Arrow gold-silver project, 3.5 kilomet res north of Bayan Khundii, to
follow-up on high -grade results intersected from reconnaissance drilling in Q4 -2017; hole AAD -12
intersected 70 g/t gold over 2 metres, and drilling of a new target area 300 metres west of AAD -12
returned 39 g/t gold over 1 metre, near-surface (hole AAD-11).
The Company will also complete follow -up, surface exploration work at its Khundii North gold
prospect, 2.5 kilometres east of Altan Arrow, where gold-in-soil anomalism has now been traced over
1 kilometre, containing areas of quartz stockwork, chalcedonic quartz with hematite breccia clasts that
have returned up to 22 g/t gold from initial rock chip sampling.
In addition to the Company’s 100% -owned gold projects, it has recently acquired a 51% interest, with
the option to acquire up to 100%, in the Ulaan license, a 1,780 hectare exploration property, located
immediately west of its Bayan Khundii license. The license has no history of trenching or drilling, and
is host to a very large, 3-kilometre diameter, intense alter ation zone with characteristics thought to be
related to a porphyry complex at depth. The Company intends to complete a maiden drill program at
Ulaan in late Q2-2018.
Through its Alliance with Teck Resources Limited, Erdene also intends to continue to a ssess regional
opportunities for porphyry and porphyry -related mineralization within the larger Edren Terrane and
intends to pursue acquisitions as opportunities arise in the Alliance’s area of interest in southwest
Mongolia. Erdene’s Bayan Khundii, Altan Nar, Altan Arrow, Ulaan, Khuvyn Khar and Zuun Mod
properties are excluded from the Teck Alliance areas of interest.
Qualified Person and Sample Protocol
Michael MacDonald, P.Geo. (Nova Scotia), Vice President Exploration for Erdene, is the Qualified
Person as that term is defined in National Instrument 43 -101 and has reviewed and approved the
technical information contained in this news release. All samples have been assayed at SGS
Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the Company
incorporates a QA/QC sample protocol utilizing prepared standards and blanks.
Erdene’s sampling protocol for drill core consisted of collection of samples over 1 m or 2 m intervals
(depending on the lithology and style of mineralization) over the entire length of the drill hole,
excluding minor post -mineral lithologies and un -mineralized granitoids. Sample intervals were based
on meterage, not geological controls or mineralization. All drill core was cut in half with a diamond
saw, with half of the core placed in sample bags and the remaining half securely retained in core boxes
at Erdene’s Bayan Khundii exploration camp. All samples were organized into batches of 30 samples
including a commercially prepared standard , blank and either a field duplicate, consisting of two,
quarter-core intervals, or a laboratory duplicate . Sample batc hes were periodically shipped directly to
SGS in Ulaanbaatar via Erdene’s logistical contractor, Monrud Co. Ltd.
About Erdene
Erdene Resource Development Corp. is a Canada -based resource company focused on the acquisition,
exploration, and development o f base and precious metals in underexplored and highly prospective
Mongolia. The Company has interests in five exploration licenses and a mining license in southwest
Mongolia, where exploration success has led to the discovery and definition of several pro spects and
deposits including: Bayan Khundii – the Company’s flagship and newly discovered, high -grade, near-
surface gold project; Altan Nar – an extensive, high - grade, near -surface, gold -polymetallic project
located 16 kilometres northwest of Bayan Khund ii; Altan Arrow – an early -stage, high -grade gold -
silver project 3.5 kilometres north of Bayan Khundii; Ulaan – a recently acquired copper -gold
porphyry prospect adjacent to Bayan Khundii; Khuvyn Khar – an early-stage, copper-silver porphyry
project; Nomin Tal – a narrow, high -grade copper -gold discovery; and Zuun Mod – a large
molybdenum-copper porphyry deposit. In addition to the above projects, Erdene has an Alliance with
Teck Resources Limited on regional copper -gold exploration in the prospective Trans Altai region of
southwest Mongolia. The Bayan Khundii and Altan Nar licenses have a 2% net smelter returns royalty
(“NSR Royalty”) in favour of Sandstorm Gold Ltd. with a buy -back option to reduce the NSR Royalty
to 1%. For further information on the Comp any, please visit www.erdene.com. Erdene has
146,400,586 issued and outstanding common shares and a fully diluted position of 156,992,160
common shares.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements
within the meaning of applicable securities laws. Forward-looking statements may include estimates,
plans, expectations, opinions, forecasts, projections, guidance or other statements that are not
statements of fact. Although Erdene believes that the expectations reflected in such forward -looking
statements are reasonable, it can give no assurance that such expectations will prove to have been
correct. Erdene cautions that actual performance will be affected by a number of factors , most of
which are beyond its control, and that future events and results may vary substantially from w hat
Erdene currently foresees. Factors that could cause actual results to differ materially from those in
forward-looking statements include market pric es, exploitation and exploration results, continued
availability of capital and financing and general economic, market or business conditions. The
forward-looking statements are expressly qualified in their entiret y by this cautionary statement. The
information contained herein is stated as of the current date and is subject to change after that date. The
Company does not assume the obligation to revise or update these forward -looking statements, except
as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS
RELEASE
Erdene Contact Information
Peter C. Akerley, President and CEO
or
Ken W. MacDonald, Vice President and CFO
Phone: (902) 423-6419
E-mail: [email protected]
Website: www.erdene.com
Twitter: https://twitter.com/ErdeneRes