Erdene Consolidates Khundii GOLD District – Acquires 100% of the Ulaan Exploration License
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www.erdene.com [email protected]
ERDENE CONSOLIDATES KHUNDII GOLD DISTRICT –
ACQUIRES 100% OF THE ULAAN EXPLORATION LICENSE
Press Release
Halifax, Nova Scotia
2020.12.10
Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to
announce the acquisition of a 100% interest in the Ulaan exploration license, adjacent to its Bayan Khundii
Gold deposit, with the purchase of the remaining 49% interest in Leader Exploration LLC, a private
Mongolian company.
Highlights:
• Ulaan is one of multiple porphyry and epithermal targets in the Khundii District (see map below)
o The Ulaan license hosts a very large hydrothermal alteration system, consistent with a porphyry
system eroded to just below the base of a lithocap with the following attributes:
o Intense phyllic (quartz-sericite-pyrite) alteration over an area 3 kilometres in diameter
o Peripheral gold-copper mineralization associated with tourmaline breccia
o Gold identified in quartz veins within illite altered volcanics adjacent to the phyllic zone
• Consolidates 100% interest in the majority of the Khundii-Ulaan alteration system hosting multiple
epithermal gold and porphyry copper (gold) targets
o Ulaan license immediately west of the Bayan Khundii deposit, and Dark Horse and Altan Arrow
gold prospects
o Expands Erdene’s holdings in the highly prospective Khundii Gold District to 17,004 ha (170 km2)
• Minimal exploration to date, but significant geologic potential
o Mapping and sampling, geophysical surveying and limited drilling, over the past three years
o Surface sampling program recently completed and drilling planned for mid Q1 2021
Quotes from the Company:
“Erdene is the leading explorer of epithermal and porphyry mineral deposits in the under-explored western
Mongolian portion of one of the world’s most prolific gold and copper belts,” said Peter Akerley, Erdene’s
President and CEO. “The Ulaan license, as well as the broader Khundii District show potential for significant
epithermal gold and porphyry copper discoveries. We look forward to exploring aggressively with our
acquisition of the Ulaan license now complete.”
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“We recently completed a surface sampling program on the Ulaan license in advance of planned drilling
in mid Q1 2021,” continued Mr. Akerley. “While we remain focused on advancing the Bayan Khundii Gold
Project to production, we will continue to explore adjacent areas as we seek to expand resources in this
exciting new gold district.”
Ulaan License
The Ulaan exploration license is located immediately west of Erdene’s Bayan Khundii mining license. The
license covers an area of 1,780 hectares, hosting a large and intense phyllic style quartz-sericite-pyrite
(QSP) alteration zone (approximately 3 kilometres in diameter) with characteristics of a porphyry copper
and epithermal gold system.
Ulaan lies at the SE end of a major alteration zone, extending for over 10 kilometres to the northeast. This
alteration trend has a central zone of intense secondary silica with a peripheral halo of sericite alteration,
and an outer zone of white mica and sericite, which hosts the Bayan Khundii gold deposit. This NE trending
alteration area, which incorporates the Ulaan, Bayan Khundii and other mineralized targets in the area
(including Erdene’s Dark Horse and Altan Arrow prospects), is associated with a regional structural
dilational jog and associated major volcano-plutonic centre, along a NE trending transform fault. The
various styles of alteration and mineralization within the Ulaan target and the adjacent zone of alteration
are consistent with a fertile magmatic island arc, with evidence for possible arc migration, and overlapping
or telescoped mineralization along major structures.
Since Erdene’s acquisition of a 51% interest in the property in Q3 2017, the Company has completed detailed
surface mapping, geochemical sampling and geophysical programs. Erdene has also drilled five wide
spaced holes, totaling 1,750 metres in the central portion of the license. Alteration and mineralization
identified to date include a central QSP zone flanked by an outer zone of propylitic alteration along with
Au, Cu, Mo soil and rock chip anomalism with locally near-vertical sheeted and stockwork quartz-pyrite
veins (D veins), with locally abundant disseminated pyrite and quartz-chalcedony-pyrite matrix crackle
breccia. This style and distribution of alteration is consistent with a porphyry system eroded to just below
the base of a lithocap into the top of QSP alteration, below which would be the mineralized quartz
stockwork zone in a typical porphyry system. On the northern flank of the QSP zone, recent drilling
intersected a gold and copper mineralized tourmaline breccia. Surface sampling has also identified
peripheral zones of illite altered volcanics with gold bearing quartz veins.
Erdene’s adjacent Bayan Khundii low-sulphidation gold system overprints earlier, and higher-temperature,
potassic and phyllic alteration zones which are consistent with porphyry-style alteration. Given the
proximity of the two areas, it is likely that the silica and advanced argillic alteration on the Khundii license
is related to the interpreted Ulaan porphyry. In addition, an apparent northwest tilt of the mineralized zone
at Bayan Khundii provides targets at depth along the eastern boundary of the Ulaan license. Erdene will
begin to test these concepts through drilling scheduled for Q1 2021.
The Company paid the Mongolian Tugrik equivalent of US$750,000, inclusive of applicable payments to the
Mongolian tax authorities, for the remaining 49% interest in Leader Exploration LLC, holder of the Ulaan
exploration license in early December 2020. The license will not carry any residual interest in favor of the
seller; however, Sandstorm Gold Royalties will hold a 1% NSR on the license. The Ulaan exploration license
is in its sixth year of a maximum 12-year term. The exploration license can be converted to a mining license
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at any time before the end of the twelfth year by meeting the requirements prescribed under the Mineral
Law of Mongolia.
District Scale Potential
Erdene’s projects are located in the eastern portion of the Central Asian Orogenic belt (see map below).
This belt hosts several giant gold and gold-copper deposits including, Kumtor (14 million ounces Au),
Almalyk (25 million ounces Au), Muruntau (140 million ounces Au) and Oyu Tolgoi (62 million ounces Au).
Deposits on this belt; orogenic, porphyry and epithermal, are typically associated with the same major
metallogenic and tectonic processes related to late Paleozoic arc structural environments. Such deposits
often occur in clusters where transform faults are the centres for volcano-plutonic activity, resulting from
offset of regional faults, and potentially associated with a mantle plume developed during the subduction
processes. Throughout the belt, NE transform structures are observed to play a major role in gold and
copper deposit genesis.
Over the past decade, Erdene has emerged as the premier explorer in southwestern Mongolia with multiple
greenfield discoveries. The Company’s exploration approach included research into the controlling
features of the major deposits, including those noted above, and evaluation of all Paleozoic Arc terranes
in Mongolia. This has resulted in our focus on the 400 kilometre long Edren Terrane (ET) based on the
geologic and structural setting and fertility. Exploration work in the eastern part of the ET has identified
multiple high priority, proprietary target areas. To date, exploration of the highest priority targets has
resulted in the establishment of three separate mineral resources within the area now known as the
Khundii District. These include the greenfield discoveries of the Altan Nar (AN) Au-polymetallic deposit and
the Bayan Khundii (BK) Au-Ag deposits, along with the discovery of numerous Au and Cu prospects and
showings (e.g. Altan Arrow, Dark Horse, Khuvyn Khar and Oyuut Khundii). The third mineral resource was
established at the Zuun Mod Mo-Cu porphyry deposit approximately 35 km east of BK. The Khundii District
includes the full spectrum of arc related mineral systems, porphyry copper & copper-molybdenum,
intermediate sulfidation, high sulfidation and low sulfidation often associated with the same favorable
regional structural trends.
Based on encouraging results to date, Erdene considers the potential for additional gold and copper
discoveries in the Khundii District to be excellent and is continuing its systematic evaluation, exploration
and development of the newly discovered mineralized district.
About Erdene
Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition,
exploration, and development of precious and base metals in underexplored and highly prospective
Mongolia. Erdene’s deposits are located in southwestern Mongolia’s Edren Terrane, within the Central
Asian Orogenic Belt, host to some of the world’s largest gold and copper-gold deposits. The Company has
been the leader in exploration in the region over the past decade and is responsible for the discovery of
the Khundii Gold District with interests in three mining licenses and two exploration licenses hosting
multiple high-grade gold and gold/base metal prospects, two of which are being considered for
development: the 100%-owned Bayan Khundii and Altan Nar gold deposits.
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Erdene Resource Development Corp. is listed on the Toronto and the Mongolian stock exchanges. Further
information is available at www.erdene.com. Important information may be disseminated exclusively via
the website; investors should consult the site to access this information.
Qualified Person
Peter Dalton, P.Geo. (Nova Scotia), Senior Geologist 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.
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 what Erdene currently foresees.
Factors that could cause actual results to differ materially from those in forward -looking statements
include the ability to obtain required third party approvals, market prices, 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 entirety 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
Robert Jenkins, CFO
Phone: (902) 423-6419
Email: [email protected]
Twitter: https://twitter.com/ErdeneRes
Facebook: https://www.facebook.com/ErdeneResource
LinkedIn: https://www.linkedin.com/company/erdene-resource-development-corp-/
YouTube: https://www.youtube.com/channel/UCILs5s9j3SLmya9vo2-KXoA
MONGOLIAKAZAKHSTAN
CHINA
RUSSIA
KYRGYZSTAN
UZBEKISTAN
Lake Baikal
Tian Shan Mountains
Ulaanbaatar
500 km
Altai Mountains
Gold Deposit
Copper Deposit
Copper-Gold Deposit
GOLD DEPOSITS OF THE EASTERN PORTION OF THE CENTRAL ASIAN OROGENIC BELT
Highlighting Mongolia’s Edren Terrane and Khundii Gold District
Vasilkovskoye
13.4 moz Au
Boshchekul
Bakirchik
8 moz Au
Arxi
2 moz Au
Kumtor
14 moz Au
Talas
8 moz Au
Almalyk
25 moz Au
Muruntau
140 moz Au
Zarmitan
11 moz Au
Tuwu
Oyu Tolgoi
62 moz Au
Tsagaan
Suvarga
Kharmagtаi
4.3 moz Au
Khundii Gold District Map
N
Edren Terrane
Bayan Khundii
KHUNDII DISTRICT PLAN MAP
Landsat with Regional Structure (after Kloppenburg) and Major Mineral Occurrences/Deposits
ALTAN NAR
ZUUN MOD
KHUNDII
-
1
ULAAN
KHUNDII
-
2
10 km
Khul
Morit
Oyut
Khundii
Bayan
Khundii
Altan Arrow
-
Dark Horse
Zuun
Mod
NE trending cross faults
and transfer structures
NW Regional Terrane
Lineations
Altan Nar
N
ERD License
Deposit
Prospect
Gold
Copper
Molybdenum
Khyuvyn
Khar
WM+ Silica Halo
Silica Rich Zone
Sericite Zone
5km
Ulaan Phyllic
Alteration Zone
Porphyry Target
BAYAN KHUNDII – ULAAN ALTERATION ZONE
Landsat, with Conceptual Structural Jog, Gold Deposit and Au-Cu Prospects
N
Gold Bearing
Tourmaline
Breccia
Bayan Khundii
Gold Deposit
Epithermal
Khundii North
Epithermal Gold
Target
Dark Horse &
Altan Arrow
Epithermal Gold
Targets
LOOKING NW FROM KHUNDII LICENSE TO ULAAN ALTERATION ZONE
Ulaan Phyllic Alteration Zone
NE Zone
Bayan Khundii
Gold Deposit
BK Exploration Office,
Core Logging Facility and
Accommodations