Erdene Continues to Define New Zone North of Midfield; Intersects 120 Metres of 1.14 g/t Gold Including 3 Metres of 33 g/t Gold at Bayan Khundii Gold Project
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Continues to Define New Zone North of Midfield; Intersects 120
Metres of 1.14 g/t Gold Including 3 Metres of 33 g/t Gold at Bayan Khundii
Gold Project
Halifax, Nova Scotia – Sept 12, 2017 – Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company") is pleased to announce additional assay results from the Company’s
on-going 2017 drill program at its 100%-owned Bayan Khundii Gold Project (“Bayan Khundii”)
in southwest Mongolia.
Highlights
• High-grade zone continues to be defined between Midfield and Striker Zones with 128
metres of 1.14 g/t gold including 22 metres of 3.3 g/t gold (BKD-194)
• North Midfield Zone continuity being established with 120 metres of 1.14 g/t gold
including 3 metres of 33 g/t gold (BKD-188)
• Testing for continuity of new zone west of Striker returns 25 metres of 1.4 g/t gold
including 3 metres of 7.8 g/t gold (BKD-198)
• Striker Zone continues to provide high-grade mineralization with up to 1 metre of 43 g/t
gold within 22 metres of 2.4 g/t gold (BKD-196)
• Hole extension in Striker Zone intersects new zone, with 58 metres of 1.2 g/t gold
including 16 metres of 2.8 g/t gold (BKD-30ext)
• Continuity of gold mineralized zone established in most eastern extension, with 6 metres
of 2.7 g/t gold (BKD-197)
• On-going Q3/Q4 drill program to include testing of target areas in the broader 2 by 1.8
kilometre Bayan Khundii prospect area, as well as continued definition of recently
discovered targets north of Midfield Zone and west of Striker-Midfield Zones with
closer-spaced drilling
• Three drill rigs continue to operate, including one rig conducting a hydro-geologic
program, with drill results to continue throughout Q3 and Q4 2017
Sixteen holes (BKD-183 to BKD-198) and one hole extension (BKD-30ext), totalling 3,074
metres, were drilled throughout the Bayan Khundii project area in mid Q3 and are included in
this update. The following table includes highlights of the drill results with a discussion
expanding on those results below.
Table 1. Bayan Khundii drill highlights
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-183 129 146 17 0.26
and 165 180 15 0.18
BKD-188 110 230 120 1.14
incl 176 179 3 33.1
BKD-193 100.3 149 48.7 0.71
incl 119 135 16 1.16
and 164 218.6 54.6 0.20
BKD-194 49 177.3 128.3 1.14
incl 88 89 1 11.9
incl 115 137 22 3.33
incl 123.9 125 1.1 43.5
BKD-196 42 84 42 0.39
and 112 134 22 2.36
incl 118 119 1 43.1
BKD-197 130 136 6 2.69
BKD-198 55 60 5 0.35
and 144 169 25 1.37
incl 145 148 3 7.81
incl 147 148 1 16.0
BKD-30ext (2) 59 117 58 1.22
incl 87 103 16 2.80
incl 95 96 1 21.9
(1) Reported intervals 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 -65 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).
(2) Previously reported, May 24, 2016, 59m to 85m (end of hole), 26m of 0.76 g/t gold.
Two plan maps have been attached for reference:
[MarketWired to insert link]
[MarketWired to insert link]
Discussion of Drill Results
The following is a summary of the areas tested, the o bjectives for each and a discussion of
results:
Midfield – Striker Gap Definition
Drilling continues to result in improved confidence and continuity in the area between the
Midfield and Striker Zones. Prior to the 2017 season limited drilling had taken pace in a 200
metre wide zone separating Striker from Midfield. Hole BKD-194 is the latest in a series of
holes confirming strong continuity between these two high-grade zones. This hole returned 22
metres of 3.3 g/t gold within 128 metres of 1.14 g/t gold.
North-Northeast Trending Structure – Potential Controls on Mineralization
A series of mostly shallow holes tested a prospective north-northeast trending area characterized
by a sub-vertical intrusive that parallels the trend of the high -grade Bayan Khundii
mineralization through the North Midfield area and along the western side of the Northeast Zone
(BKD-184, 185, 186 and 192). The syenite intrusive was intersected at relatively shallow depths
in three of the holes, between 48 metres and 110 metres depth after intersecting Cretaceous in the
top of the holes. However, the most northerly of the four holes did intersect a thick package of
altered Devonian volcanics to the end of the hole at 200 metres. Locally anomalous gold,
arsenic and antimony with up to 2 metres of 1.3 g/t gold within zones of intense alteration
enhances the potential of this northern extension for future drill testing.
West of Midfield Zone
Three holes tested potential continuity of gold mineralization west of the Midfield Zone (BKD-
183, 189 and 190), an area that has received limited drilling to date. Two holes immediately
west of Midfield (BKD-189 and 190) intersected deep zones of moderately altered Devonian
volcanics with locally anomalous gold (6 metres of 0.4 g/t) but not of the alteration intensity of
Striker or Midfield. Hole BKD-183, one of the more northwesterly holes drilled to date, at 250
metres northwest of the Striker Zone, had similar characteristics but did exhibit zones of
increased alteration with anomalous gold (7 metres of 0.4 g/t). Interestingly, given this hole is in
the direction of the Company’s recently acquired Ulaan copper prospect, it did exhibit zones of
anomalous copper with up to 0.17% copper over 2 metres.
Potential Northeast of Striker Zone
Two holes were completed to the northeast of the Striker Zone (BKD-187 and 197) testing for
continuity in the area of previously completed hole BKD-118. BKD-118 returned 10 metres of
12.8 g/t gold earlier this year. Hole BKD-187, 74 metres northeast of BKD-118, did not
intersect significant mineralization however, hole BKD-197, drilled 35 metres down dip of
BKD-118, intersected 6 metres of 2.7 g/t gold. One hole (BKD-195) also tested a shallow (50
metres depth) target located 1 kilometre east of Midfield to test a near -surface resistivity
anomaly intersecting Cretaceous basalt. Additional drilling will be completed in the area
northeast of Striker in Q4-2017.
West of Striker Zone
The western edge of the Striker Zone, between Striker and the newly developing western zone,
had limited drilling previously due to poor results in shallow drilling. However, with the results
from the Midfield-Striker connection zone indicating deeper mineralization potentially plunging
under these shallow holes, two holes were completed to test this theory and were successful.
The extension of previously completed hole BKD-30 was extended from its previous 85 metre
depth to 163 metre depth and intersected 58 metres of 1.2 g/t gold including 16 metres of 2.8 g/t
gold, and BKD-196 also returned 22 metres of 2.4 g/t gold.
New Western Gold Zone
A single hole (BKD-198) was drilled in the under-cover area 130 metres west of the Striker Zone
to test the down-dip potential of previously completed hole BKD-32 which returned a broad
zone of low-grade mineralization during 2016 drilling (115 metres of 0.4 g/t gold). BKD-198
has confirmed higher grades at depth with 25 metres of 1.4 g/t gold and individual 1 metre
samples up to 16 g/t gold.
Going Forward – Q3-Q4 2017 Drill Program
The Company has completed a total of 19,386 metres in 2017 at Bayan Khundii (102 new drill
holes and five extended drill holes), for a total of 30,728 metres (198 drill holes) since the first
drill hole in Q4-2015. For the remainder of Q3, and into Q4, the Company’s drilling program at
Bayan Khundii will be focused on testing a series of geophysical and geochemical targets within
the larger 2 by 1.8 kilometre Bayan Khundii prospect area. Planning for additional drilling is
underway and expected to include further delineation of newly discovered high-grade
mineralization encountered during the Q2-Q3 2017 exploration program and increasing
confidence in the ultra high-grade domains.
In addition to the on-going Bayan Khundii drill program, the Company will complete regional
exploration and drilling between Bayan Khundii and its Altan Arrow gold-silver project, located
3.5 kilometres north of Bayan Khundii. The Company also has a follow-up drill program
underway at its neighboring Altan Nar gold-polymetallic project, located 16 kilometres
northwest of Bayan Khundii. This program includes testing of newly defined geophysical
targets and completion of step-out drilling in areas adjacent to its previously reported NI 43-101
mineral resource estimate at Altan Nar (see Erdene news release dated March 31, 2015). Based
on upcoming Q3/Q4 2017 drill results, and on drilling completed at Altan Nar in 2015 and 2016,
it is anticipated that a revised resource estimate at Altan Nar will be completed in 2018 in
addition to a maiden resource estimate for Bayan Khundii.
Background on Bayan Khundii Gold Project
In Q2-2015, Erdene conducted an initial exploration program on the southern portion of the
Company’s 100%-owned Khundii exploration license in southwest Mongolia where an early
rock-chip sampling program revealed multiple very high-grade surface quartz veins that returned
up to 4,380 g/t gold. Since that time, drilling has revealed the presence of very high gold grades,
with up to 306 g/t gold over 1-metre intervals, within broad mineralized zones, with up to 131
metres of 3.9 g/t gold, including 80 metres of 6.0 g/t gold. In addition to the drilling discussed
above, the Company has completed a comprehensive exploration program at Bayan Khundii that
has included: geological mapping; soil geochemic al surveys; additional surface rock chip
sampling; a ground magnetic survey; gradient array and dipole -dipole induced polarization
surveys. In addition to this work, a series of detailed follow-up studies have also been completed,
predominantly on drill core and minor surface outcrop, including: petrographic and
mineralogical analyses; a fluid inclusion study; SEM gold composition analysis; Short-Wave
Infra-Red Analysis (SWIR); structural analysis; and overall petrogenetic analysis. Detailed
studies indicate the mineralized zones can be characterized as low-sulphidation, quartz-illite-
adularia type mineralization that was presumably formed in an extensional environment.
In Q1-2016, the Company concluded preliminary metallurgical test work at Bayan Khundii,
indicating that gravity concentration and cyanidation of the gravity tails yield very good overall
gold recoveries for both high-grade and low-grade composites, yielding 99% gold recovery from
the high-grade composite (24.9 g/t gold) and 92% gold recovery from the low-grade composite
(0.7 g/t gold). Additional metallurgical work is underway with completion anticipated in Q3-
2017.
The Bayan Khundii license has 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%.
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 metre or 2
metre 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 ¼ core intervals, or a laboratory duplicate. Sample
batches 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 of base and precious metals in underexplored and
highly prospective Mongolia. The Company has four exploration licenses, a mining license, and
a recently optioned exploration license, in southwest Mongolia. In addition to the Bayan
Khundii and Altan Nar projects, other deposits and prospects within these licenses include: Altan
Arrow – an early-stage gold-silver project; Ulaan – a recently acquired (option to earn 100%
ownership) copper porphyry and gold epithermal project immediately west of Bayan Khundii
and Altan Arrow; Khuvyn Khar – an early-stage, copper-silver porphyry project with multiple
drill targets and significant copper intersections; Nomin Tal – a narrow, high grade copper-gold
discovery; and Zuun Mod – a large molybdenum-copper porphyry deposit. In addition to the
above properties, the Company has an Alliance with Teck Resources Limited on regional
copper-gold exploration in the prospective Trans Altai region of southwest Mongolia. For
further information on the Company, please visit www.erdene.com. Erdene has 145,963,086
issued and outstanding common shares and a fully diluted position of 156,592,160 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, guida nce 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 many 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 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
Ken W. MacDonald, Vice President and CFO
Phone: (902) 423-6419
E-mail: [email protected]
Website: www.erdene.com
Twitter: https://twitter.com/ErdeneRes