Erdene Continues to Expand New Ulaan GOLD Discovery 77 Metres of 3.2 G/T GOLD, Including 27 Metres of 8.7 G/T GOLD and 152 Metres of 1.7 G/T, Including 65 Metres of 3.1 G/T GOLD
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ERDENE CONTINUES TO EXPAND NEW ULAAN GOLD DISCOVERY
77 METRES OF 3.2 G/T GOLD, INCLUDING 27 METRES OF 8.7 G/T GOLD AND
152 METRES OF 1.7 G/T, INCLUDING 65 METRES OF 3.1 G/T GOLD
Press Release
Halifax, Nova Scotia
2021.10.20
Erdene Resource Development Corporation ( TSX: ERD | MSE: ERDN) (“Erdene” or the
“Company”) is pleased to announce assay results from four (4) holes in the South Ulaan
gold discovery expansion drill program. Today’s results confirm thick sequences of high-
grade gold mineralization continue west of the initial discovery.
Highlights
• Drilling expands mineralization at South Ulaan to the west, with multiple thick gold
mineralized zones with high-grade intersections:
o UDH-21: 77 metres of 3.2 g/t gold and 71 metres of 0.8 g/t gold
§ Includes 27 metres of 8.7 g/t gold , including one metre of 156.5 g/t
gold
o UDH-22: 65 metres of 3.1 g/t gold within 152 metres of 1.7 g/t gold
§ Includes 7 metres of 18.5 g/t gold, including one metre of 119.8 g/t
gold
o UDH-19: 190 metres of 0.7 g/t gold
§ Includes 5 metres of 12.5 g/t gold , including one metre of 60.6 g/t
gold
• Together with the Bayan Khundii deposit, Dark Horse and Altan Arrow Prospects,
these results demonstrate the potential scale of mineralization within the Khundii-
Ulaan Hydrothermal system
o Results from drilling at the Dark Horse Zone, consisting of 36 holes totaling
2,286 metres, will be reported by mid-Q4
o Developing exploration plans to test high -priority geochemical and
geophysical targets throughout the large Khundii-Ulaan system
Quotes from the Company:
“Today’s results confirm the significance of the Ulaan gold discovery and are a testament
to the potential for discovery across the wider area,” said Peter Akerley, Erdene’s
President and CEO . “This new discovery is producing the thickest intervals of gold
mineralization intercepted in the District to date, including exceptionally high-grade zones,
and remains open at depth and to the west.”
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“Ulaan is part of a very large gold-bearing hydrothermal alteration system underlying our
Khundii and Ulaan licenses that shows the potential to host a multimillion-ounce gold
deposit,” continued Mr. Akerley. “Exploration continues across this system with results
from additional drilling at our Dark Horse prospect anticipated by mid-Q4.”
Summary of Drill Results
The recently completed Ulaan drill program was designed to test the extent of
mineralization around the discovery drill holes reported on August 11, 2021 ( see press
release). The program consisted of nine (9) holes totaling 3,204 metres. Drill ho les were
spaced 25 to 50 metres apart and to a maximum depth of 461 metres, testing targets over
an area of approximately 1.2 square kilometres.
Assay results from five (5) drill holes (UDH -14 to UDH-18) were reported on September
23, 2021 (see press release ). Results for the final four (4) holes (UDH-19 to UDH -22),
with an aggregate meterage of 1,401.1 metres, are reported herein. Highlights are
provided below in Table 1 , and a drill hole plan map and section are attached to this
release.
Table 1: Ulaan Q4 2021 Drilling Highlights (Intervals averaging over 0.30 g/t gold)
Hole From To Interval (1) g/t Au
UDH-19 82 272 190 0.73
Incl 87 92 5 12.52
Incl 87 88 1 60.55
UDH-20 98 100 2 1.10
And 288 298 10 0.59
UDH-21 115 192 77 3.19
Incl 131 158 27 8.74
Incl 139 140 1 156.54
Incl 155 156 1 20.98
And 209 280 71 0.81
Incl 222 230 8 1.92
Incl 257 271 14 2.79
And 304 318 14 0.34
And 346 350.3(2) 4.3 0.38
UDH-22 85 236.7 151.7 1.71
Incl 85 150 65 3.11
Incl 87 94 7 18.50
Incl 93 94 1 119.80
And 332 338 6 0.33
1. Reported intervals in this release are downhole apparent widths. Continued exploration is required to confirm anisotropy of
mineralization and true thicknesses
2. End of hole
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Gold mineralization intersected at South Ulaan begins approximately 80 metres from
surface and is hosted within the same white mica altered lapilli tuff sequence which hosts
Erdene’s Bayan Khundii epithermal gold deposit, located just east on the Khundii mining
license. Gold grades up to 156.5 g/t are related to intense quar tz ± hematite veins and
stockwork zones potentially related to a bounding structure and/or feeder conduit. Gold
mineralization at South Ulaan also appears to be partially controlled by lithology with low
permeability silicified ash tuffs focusing fluid flow and coarser lapilli tu ffs a cting as a
preferred host to mineralization relative to the finer grained lithologies.
In general, the highest -grade gold mineralization occurs within intervals of pervasive
silicification combined with adularia and whi te mica alteration cut by epithermal style,
irregular quartz -hematite, quartz -adularia, quartz -white mica veins and quartz -chlorite-
magnetite veins. In many instances visible gold has been observed finely disseminated
within these veins.
Khundii-Ulaan Mineralized System
The Ulaan exploration license and adjoining Khundii mining license cover nearly 4,000
hectares of the Khundii-Ulaan hydrothermal alteration zone , which extends from Ulaa n
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 northeast trending
alteration area, which incorporates the Ulaan, Bayan Khundii , Dark Horse and other
mineralized targets in the area, is associated with a regional structural dilational jog and
associated major volcano-plutonic centre, along a northeast trending transform fault. The
various styles of alteration and mineralization within the Khundii-Ulaan target area are
consistent with a fertile magmatic island arc, with evidence for possible arc migration, and
overlapping or telescoped mineralization along major structures.
Exploration results to date suggest the greater Khundii-Ulaan alteration zone and known
gold occurrences are part of the same , large, gold-bearing hydrothermal system which
remains largely under-explored. Gold mineralization identified to date is hosted within an
expansive, white mica and silica altered tuffaceous sequence exposed around the
periphery of the Khundii-Ulaan hydrothermal alteration system. Quartz vein textures and
clay alteration compositions indicate a large-scale epithermal type gold mineralizing
environment existed within the Khundii-Ulaan system with the tuffaceous lithologies
acting as preferred hosts for gold mineralization . Exploration planning is currently
underway to test multiple high-priority geological, geochemical and geophysical targets
across the Khundii-Ulaan target area.
Khundii Gold District
Erdene’s deposits are in the 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 southwest Mongolia over the past decade and is responsible for
the discovery of the Khundii Gold District comprised of multiple high -grade gold and
gold/base metal prospects, one of which is currently being developed, the 100%-owned
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Bayan Khundii Gold Project, and another which is being considered for development, the
100%-owned Alta n Nar Project. Together, these deposits comprise the Khundii Gold
Project.
The Bayan Khundii Gold Resource1 includes 585,100 ounces of 2.19 g/t gold Measured
and Indicated (“M&I ”)2 and 35,900 ounces of Inferred resources at 2.18 g/t gold. Within
the M&I resource, a Proven and Probable open-pit reserve totals 409,000 ounces at 3.7
g/t gold3 (press release here), providing significant potential for reserves growth with the
development of the remaining M&I and Inferred resources1.
In July 2020, Erdene announced the results of an independent Feasibility Study for the
Bayan Khundii Gold Project (press release here). The Feasibility Study results include an
after-tax Net Present Value at a 5% discoun t rate and a US$1,400/oz gold price of
US$100 million and Internal Rate of Return (“IRR”) of 42%. The Feasibility Study
envisions an open -pit mine at Bayan Khundii, producing an average of 63,500 oz gold
per year, for seven years, at a head grade of 3.71 g/t gold, utilizing a conventional carbon
in pulp processing plant. Production is expected to commence in 202 3 based on the
current project schedule.
Erdene Resource Development Corp. is a Canada-based resource company focused on
the acquisition, explorat ion, and development of precious and base metals in
underexplored and highly prospective Mongolia. The Company has interests in three
mining licenses and two exploration licenses in Southwest Mongolia, where exploration
success has led to the discovery and definition of the Khundii Gold District. 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 and Sample Protocol
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. 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. All samples undergo standard fire assay analysis for gold and ICP-
OES (Inductively Coupled Plasma Optical Emission Spectroscopy) analysis for 33
additional eleme nts. For samples that initially return a grade greater than 5 g/t gold,
additional screen-metallic gold analysis is carried out which provides a weighted average
1 For details of the Mineral Resources see Erdene’s Q2/2021 results press release, dated August 16, 2021, and the
Company’s Q2 2021 MD&A, available on the Company’s website or SEDAR.
2 M&I: 232,700 ounces of 2.39 g/t gold Measured and 352,400 ounces of 2.08 g/t gold Indicated
3 P&P: 165,000 ounces of 4.4 g/t gold Proven and 256,000 ounces of 3.4 g/t gold Probable; For details of the Mineral
Reserves see Khundii Gold Project NI 43 -101 Technical Report, Tetra Tech December 4, 2019 available on the
Company’s website or SEDAR
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gold grade from fire assay analysis of the entire +75 micron fraction and three 30 -gram
samples of the -75 micron fraction from a 500 gram sample.
Erdene’s drill core sampling protocol consisted of collection of samples over 1 or 2 metre
intervals (depending on the lithology and style of mineralization) over the entire length of
the drill hole, ex cluding 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 th e remaining half securely retained in core boxes at Erdene’s Bayan Khundii
exploration camp. All samples were organized into batches of 30 including a commercially
prepared standard, blank and either a field duplicate, consisting of two quarter -core
intervals, or a laboratory duplicate. Sample batches were periodically shipped directly to
SGS in Ulaanbaatar via Erdene’s logistical contractor, Monrud Co. Ltd.
Reported intervals are apparent thicknesses, i.e. downhole widths. The current Ulaan drill
holes are all dipping at 85 degrees and oriented to intersect SW dipping WNW trending
gold bearing veins. Additional study is required to confirm true widths. Reported grades
for intervals are weighted averages based on length of sampling intervals. No top cut has
been applied; however, all intervals greater than 10 g/t gold are reported individually for
clarity
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 pro ve 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 gen eral 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
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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-/
© 2021 Erdene Resource Development Corp.
All rights reserved
BAYAN KHUNDII
GOLD DEPOSIT
DARK HORSE
GOLD PROSPECT
Altan
Arrow
Gold Prospect
West Gate
Gold Anomaly
Tourmaline
Breccia
Gold Zone
Khundii
North
Gold Prospect
THE BAYAN KHUNDII (“RICH VALLEY”) DISCOVERY
Khundii – Ulaan Tenements, BK Deposit and Prospects Location Map
Ulaan
Exploration License
Erdene
100% Ownership
Khundii
Mining License
Erdene
100% Ownership
Intense White Mica
Sericitic
Core
Khundii – Ulaan Hydrothermal Alteration Footprint
Intense white mica and Phyllic Zone
Pervasive white mica Argillic zone
Intense Silicification
1 km 1 km
Khundii – Ulaan Active Discoveries and Prospects
Pervasive Alteration Footprint
South
Ulaan
Plan Map
ULAAN
GOLD DISCOVERY
© 2021 Erdene Resource Development Corp.
All rights reserved
ULAAN GOLD DISCOVERY – 300 METRES WEST OF BAYAN KHUNDII DEPOSIT
Bayan Khundii Gold Trend Continuation and Ulaan Gold Discovery
Ulaan
Exploration License
100%
Erdene
Khuren
Tsav
Exploration
License 100%
Erdenes
Alt
Khundii
Mining License
100%
Erdene
Bayan Khundii
Proposed Pit
Dark Horse
2.4 Kilometres
500 m
Gold in Soil +
Rock Chip Anomaly
Tenement Boundary
Projected Trend
Gold Mineralization
N
Bayan Khundii Gold Deposit
and Mineralized Trend
3
SE ULAAN
PROJECT AREA
INSET MAP