Erdene Establishes Strong Continuity of High-Grade Zones, Including 18 Metres of 21.6 g/t Gold at Bayan Khundii Gold Project
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Establishes Strong Continuity of High-Grade Zones, Including 18
Metres of 21.6 g/t Gold at Bayan Khundii Gold Project
Halifax, Nova Scotia – May 8, 2018 - Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company"), is pleased to report results for the first series of drill holes from its
Q2-2018 drill program at its 100%-owned Bayan Khundii Gold P roject (“Bayan Khundii”) in
southwest Mongolia.
“Our initial phase of 2018 drilling in the Midfield North Zone was very successful in extending
the gold mineralized zone, improving the continuity of the ultra high-grade mineralization and
increasing our understanding of the controlling structures and associated feeder zones ,” said Peter
Akerley, Erdene’s President and CEO. “We are continuing to target extensions to high -grade
zones in other areas of Bayan Khundii, and following this program will drill test more distal
targets at our neighboring Altan Arrow, Khundii North and new Ulaan project.”
Highlights
(see attached plan maps and cross-section for reference)
Strong continuity was established within the North Midfield high-grade zone with a ll six
holes intersecting visible gold mineralization with assays ranging from 22 to 169 g/t gold.
The core of the North Midfield Zone continued to display very high grades with hole
BKD-238 returning 18 metres of 21.6 g/t gold, including 2 metres of 169 g/t gold.
All holes intersected broad gold mineralized zones env eloping the high-grade cores,
ranging from 16 metres to 102 metres of greater than 1 g/t gold.
BKD-235 extended the zone down -dip with 16 metres of 3.8 g/t gold, where it remains
open.
Evidence of gold-bearing feeder zones intersected in holes BKD-236 and BKD-237 testing
the western hanging wall structure.
Additional Bayan Khundii drill results will continue throughout Q2.
Bayan Khundii drill program will be followed by dr ill testing of follow-up targets at
Erdene’s neighbouring Altan Arrow, Khundii North and Ulaan projects later in Q2.
Summary of Bayan Khundii Drill Program
The Company’s Q2-2018 drill program, which commenced on April 11, 2018 , is designed to test
high priority structural targets, principally within the North Midfield and Midfield zones, complete
closer-spaced drilling within the Striker, West Striker, Midfield, and North Midfield zones, and to
test select areas within the larger 1.4 kilometre trend that demonstrate good potential for
establishing additional extensions to gold mineralized zones.
Today’s results are fo r the first six holes (BKD-235 to BKD -240), totalling 1,423 metres, which
were completed at the North Midfield Zone. Holes BKD-235 to BKD-238 were drilled to test
continuity and potential extensions of the high -grade mineralization in the North Midfield target
area. Hole BKD -236 was also drilled to test the interpreted controlling structure on the western
boundary of the gold mineraliza tion and a sub -set of gold -bearing, north-south trending veins,
approximately perpendicular to the main trend of mineralization (azimuth of 108 degrees). H oles
BKD-239 and BKD -240 were step-out holes, located near previously completed hole BKD-232
(Q1-2018) that returned 36.6 metres of 5.6 g/t gold.
Table 1 below includes drill result highlights of these six holes, followed by a description of
results. For reference see the attached plan maps and cross-section.
Table 1. Bayan Khundii drill highlights
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-235 151 168 17 0.96
and 205 262 57 1.27
incl 205 221 16 3.83
incl 208 209 1 23.4
incl 214 215 1 23.3
BKD-236 138 154 16 1.05
and 181 189 8 3.75
incl 185 186 1 22.1
BKD-237 94 196 102 1.44
incl 102 106 4 5.14
incl 165 178 13 6.78
incl 169 171 2 33.8
BKD-238 115 134 19 0.52
and 152 170 18 21.6
incl 152 154 2 169.2
incl 156 158 2 22.0
BKD-239 109.4 123.4 14 0.80
and 136 172 36 3.78
incl 146 160 14 8.64
incl 146 147 1 54.8
incl 154 155 1 14.7
incl 159 160 1 23.6
BKD-240 99.9 134 34.1 1.90
incl 128 129 1 25.7
(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 -57 degrees and oriented to the north-northeast, with the exception of BKD -236, which was drilled at a
108 degree azimuth. The Bayan Khundii mineralization is interpreted to be moderately dipping (approximately 40 to
50 degrees to the southwest).
Discussion of Drill Results
The six drill holes discussed herein were designed as follow-up drilling to establish continuity and
potential extensions of the high -grade mineralization, along with the testing of additional
structural targets within the North Midfield Zone discovered in mid-2017.
The named zones within the Bayan Khundii prospect are relatively distinct gold mineralized zones
that potentially developed around individual feeder structures , which have resulted in very high -
grade cores to multiple zones, the most prominent being Striker, Midfield and North Midfield.
Considering todays results , and defined by a 0.2 g/t gold mineralized shell, North Midfield is
contained within a 150 metre thick package of intensely altered Devonian volcanics within which
a high-grade quartz adularia vein, breccia system, continues approximately 250 metres along its
southeast strike, over a distance of 150 metres down -dip to the southwest. Today’s holes were
collared within a 150 by 90 metre a rea in the western portion of the North Midfield target area
(see attached plan map).
A recent independent structural analysis of the Bayan Khundii project was considered in the
planning of the current drill program. Results of that study suggest mineralization is related to
bounding faults of a relay ramp structure where a series of southwest -dipping structures have been
intersected by a deep seated fault, allowing gold-bearing fluids to migrated up ward along the
bounding faults, with the main feeder zones occupying the intersections of the bounding faults and
major structure. T his Q2 drill program is designed to test these structural targets in an effort to
extend and develop continuity within these high-grade zones where previo us drilling has returned
values up to 2,200 g/t gold over 1 metre within 14 metres of 158 g/t gold in previously-reported
hole BKD-231.
The current drilling program has provided evidence to support the presence of feeder zones in the
vicinity of the wes tern boundary of the North Midfield Zone. This includes multi-stage,
brecciated, dark chalcedony-quartz-adularia zones in the westernmost holes (BKD-236 and BKD-
237) locally with abundant visible gold intersected, including up to 2 metres of 33.8 g/t gold .
Moving east within the Midfield North Zone, along the southwest -dipping structures , the gold-
bearing zones are characterized by sugary-textured, recrystallized comb-textured quartz veins , as
observed in hole BKD -238 from 152 to 170 metre depth , which averaged 21.6 g/t gold with
abundant visible gold , and hole BKD-239 from 146 to 147 metre depth, which averaged 54.8 g/t
gold within quartz-hematite-green illite veins, again with abundant, fine-grained visible gold. The
results of this program will both expand and provide higher confidence to the North Midfield
Zone in regards to the resource reporting that is scheduled for Q3 -2018, as well as provide
guidance for future targeting within and distal to the Bayan Khundii gold system.
Bayan Khundii Q2-2018 Drill Program
The remainder of the Bayan Khundii drill program (approximately 3,000 metres; 15 holes ) will
focus on completing closer -spaced drilling in the North Midfield, Midfield, Striker and West
Striker zones to establish stronger continuity of some of the very high -grade domains in order to
provide higher levels of confidence in domain definition and overall gold grades for incorporation
in the Company’s anticipated Q3-2018 maiden mineral resource estimate at Bayan Khundii.
Regional District Exploration
Over the past several years Erdene has discovered a new gold district (“The Khundii Gold
District”) in southwest Mongolia that includes seven targets , two of which are considered
significant prospects for development, and which are being advanced toward a global mineral
resource estimate in 2018; Bayan Khundii and Altan Nar.
During 201 8, i n addition to drilling at Bayan Khundii, the Company intends to complete
additional drilling at its early-stage Altan Arrow gold-silver project, 3.5 kilometres north of Bayan
Khundii, to follow-up on high -grade results intersected from reconnaissance drilling in Q4 -2017.
This drilling included hole AAD-12 which intersected 70 g/t gold over 2 metres, and drilling of a
new target area 300 metres west which 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. Several areas of strong
illite alteration, resembling the alteration at the Bayan Khundii project , located 3.5 kilometres to
the southwest, were noted along a major northeast -trending structure to the northwest of the main
quartz breccia zone.
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, a nd is host to a very large, 3 -kilometre diameter, intense alteration 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 wi th Teck Resources Limited , Erdene also intends to continue to assess
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 sample s 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 fo r gold and ICP -OES (Inductively Coupled Plasma
Optical Emission Spectroscopy) analysis for 33 additional elements. 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 gold grade from fire assay analysis of the entire +75 micron fraction
and three 30-gram samples of the -75 micron fraction for a 500 gram sample.
Erdene’s drill core sampling protocol consisted of collection of samples over 1 or 2 m inter vals
(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 mineralizati on. 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 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.
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 interests in four exploration licenses and a mining
license in southwest Mongolia, where exploration success has led to the discovery and definition
of several prospects and deposits including: Bayan Khundii – the Company’s flagship and newly
discovered, high -grade, ne ar-surface gold project; Altan Nar – an extensive, high - grade, near -
surface, gold -polymetallic project located 16 kilometres northwest of Bayan Khundii; 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 Company, 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 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 econom ic, 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