Erdene Expands Bayan Khundii Mineralization with 43m of 1.8 g/t Gold East of Midfield, Including 1m of 45 g/t Gold, and 20m of 2.8 g/t Gold West of Striker, Including 1m of 51 g/t Gold
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Expands Bayan Khundii Mineralization with 43m of 1.8 g/t Gold East of
Midfield, Including 1m of 45 g/t Gold, and 20m of 2.8 g/t Gold West of Striker,
Including 1m of 51 g/t Gold
Halifax, Nova Scotia – Oct 31, 2017 – Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company") is pleased to provide an update on its gold exploration projects in
southwest Mongolia, including additional assay results from the Company’s 2017 drill program at its
100%-owned Bayan Khundii Gold Project (“Bayan Khundii”).
“Today’s results further demonstrate the growth potential at Bayan Khundii with holes west of Striker
and east of Midfield providing the widest gold mineralized intersections in those areas to date, along
with some of the very high grades observed in Striker and Midfield,” said Peter Akerley, Erdene’s
President and CEO. “In addition to the Bayan Khundii drilling program and those at the neighboring
Altan Nar project, surface exploration programs have been successfully generating new targets
elsewhere within an area up to 8 kilometres north of Bayan Khundii and along the 6 kilometre long
trend of gold prospects at Altan Nar. Over the next two months we will continue drilling at Bayan
Khundii and Altan Nar, continuing to test the perimeters of the main mineralized areas and improving
confidence in the ultra-high-grade zones at Bayan Khundii within which almost 20% of our holes have
returned intersections of 30 to 300 g/t gold.”
Summary of Results
Twenty holes (BKD-199 to BKD-218) and five-hole extensions (BKD-27, -29, -68, -85 and -176),
totalling 4,355 metres, were drilled throughout the Bayan Khundii project area in mid Q3 and are
included in this update. For reference see Table 1 and attached plan maps below.
Highlights
Expansion East of Midfield Zone: While most of the drilling in Midfield has focused on pushing the
northern limits of the gold mineralized zone towards the Northeast Zone, hole BKD-210, located 80
metres east of Midfield’s eastern boundary, returned 43 metres of 1.8 g/t gold (BKD-210) and included
gold values up to 44.8 g/t, establishing a new eastern extension to the Midfield Zone that justifies
further follow-up drilling.
Multiple Mineralized Intersections West of Striker Zone: The area west of Striker continued to be
a focus of the recent expansion drilling program with new holes returning the widest and highest-grade
intersections to date in this area, justifying further follow-up drilling. Hole BKD-216, located along
the western portion of the target area, 240 metres west of the Striker Zone, returned a 20 metre
intersection of 2.8 g/t gold, including up to 50.5 g/t gold over 1 metre, and hole BKD-211, located 200
metres west of the Striker Zone, returned 63 metres of 1.1 g/t gold. In addition, three new holes and
two extension holes (BKD-204, -205, -212; extensions BKD-68 and -176) were drilled in this area
returning multiple zones of lower grade gold mineralization.
Striker Zone - Extensions at Depth Toward Midfield: Recent drilling in the northwest Striker area,
where early, shallow holes had not intersected significant mineralization, returned an extension of
mineralization below previous drilling with 58 metres of 1.2 g/t gold, including 16 metres of 2.8 g/t
gold (BKD-30ext.) (see Sept 12, 2017 news release). Today’s results include three additional hole
extensions in this area; BKD-27, -29, and -85. Hole BKD-27ext. returned 55 metres of 1.2 g/t gold
from 109 to 164 metres, followed by 20 metres of 0.74 g/t gold to 222 metres depth with the other two
extension holes intersecting wide zones of highly anomalous gold, further confirming the extension of
gold mineralization at depth between Striker and Midfield. These extended holes also continue to
support the down-dip extension of mineralization from Midfield toward the west side of Striker.
Further Continuity in area North of Midfield Zone: Five holes were completed in this area and
continue to support continuity of the gold mineralization in this zone discovered earlier in 2017, north
of the Midfield Zone (BKD-199, -200, -209, -217, and -218). These holes were spaced at
approximately 40 metre intervals and provided a number of wide gold mineralized intersections
including hole BKD-199 which intersected a thick sequence of mineralized volcanics, returning 88
metres of 1.1 g/t gold at 74 metres depth. Hole BKD-217 also intersected a thick sequence of altered
tuffs, with an 18 metre wide zone averaging 0.74 g/t gold. Hole BKD-218, drilled 80 metres northeast
of BKD-217, intersected an 81 metre wide zone that returned 0.65 g/t gold and included a 20 metre
zone that averaged 1.5 g/t gold. These results confirm continuity within this zone north of Midfield,
extending it closer to the Northeast Zone.
Reconnaissance Drilling in Northeast Zone Demonstrates Continuity: A series of reconnaissance
holes were drilled north and northeast of the main Bayan Khundii trend with one of these step-out
holes, BKD-214, located 130 metres east of the Northeast Zone and 650 metres northeast of the
Midfield Zone, returning an altered volcanic sequence with anomalous gold intersections, including 31
metres of 0.24 g/t gold at 48 metres depth. The result, although low-grade, is important as it provides
evidence of continuity of the gold mineralizing fluids beyond the areas defined to date.
The following table includes drill result highlights of the holes discussed above.
Table 1. Bayan Khundii drill highlights
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
East of Midfield Zone
BKD-210 89 131.8 42.8 1.75
incl 105 118 13 4.89
incl 106 107 1 44.8
West of Striker Zone
BKD-204 70 87 17 0.89
incl 74 81 7 1.70
BKD-205 12 15 3 0.70
and 107 131 24 1.21
incl 120 127 7 3.59
incl 122 123 1 12.7
and 159 196 37 0.57
incl 183 195 12 1.34
BKD-211 100 163 63 1.09
incl 101 114 13 3.99
incl 101 102 1 17.9
and 106 107 1 12.2
BKD-216 29 50 21 0.48
and 153 173 20 2.83
incl 153 163 10 5.52
incl 156 157 1 50.5
BKD-68 ext. 128 130 2 20.5
North of Midfield Zone
BKD-199 74 162.3 88.3 1.08
incl 148 149 1 15.2
and 153 154 1 16.6
BKD-200 110.4 190 79.6 0.64
incl 110.4 136 25.6 1.18
and 210.7 223.5 12.8 0.47
BKD-209 136.5 153 16.5 0.62
BKD-217 179 197 18 0.74
incl 189 197 8 1.58
BKD-218 141 222 81 0.65
incl 202 222 20 1.46
Striker Zone Hole Extensions
BKD-27 ext. (2) 109 164 55 1.21
and 202 222.3 20.3 0.74
BKD-29 ext. 175 191 16 0.31
incl 175 181 6 0.51
BKD-85 ext. 148 170 22 0.34
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
and 177 213.4 36.4 0.47
incl 182 195 13 0.84
Northeast Zone
BKD-214 48 79 31 0.24
(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 in 2016, 57m to 85m (end of hole), 28m of 0.51 g/t gold.
Going Forward – Q4-2017 Drill Program at Bayan Khundii
Since the beginning of the year, the Company has completed a total of 22,710 metres with 122 new
drill holes and 10 extended drill holes at Bayan Khundii, and is expected to reach over 26,000 metres
by year-end. Since the first drill hole in Q4-2015, the Company has drilled a total of 35,085 metres in
218 drill holes.
For the remainder of Q4, the Company’s drilling program at Bayan Khundii will be focused on further
defining boundaries and increasing confidence through a series of holes across the Bayan Khundii
mineralized area including Striker, Midfield, and the areas north of Midfield and west of Striker. The
Q4 drill program is expected to include an additional 4,000 metres, to be completed at Bayan Khundii
and at the Company’s Altan Nar gold-polymetallic project, 16 kilometres northwest. There will also
be some additional reconnaissance drilling in target areas within both licences over the next two
months. Those targets are still being defined as exploration results are continuing to be evaluated.
Ultra, High-Grade Areas
Bayan Khundii has a very significant high-grade component with over 20% of the 218 reported drill
holes having one or more intersections of 30 g/t to 300 g/t gold. These 50+ intersections have an
average grade of 78 g/t gold and their contribution to the eventual resource will be very significant.
Therefore, ensuring these zones are well defined with sufficient data to provide accurate levels of
influence and control for any proposed capping of these grades is of primary importance to the quality
of the eventual resource estimate. Higher definition drilling of these ultra-high-grade zones has been
recommended by an independent technical consultant and will be designed to assist in resource
modeling.
Regional District Exploration Programs
In addition to drilling at Bayan Khundii, significant work has been completed in a series of projects
within the larger developing district, including detailed geological mapping, soil geochemical
sampling, rock chip geochemical sampling and geophysical programs over the entire Khundii license,
north of the Bayan Khundii project. Final results are pending but several areas of intense alteration
with associated anomalous gold in rock chip samples have been identified , including a zone along
trend from Bayan Khundii, three kilometres to the northeast. It is anticipated that, the priority targets
generated will be identified and drilled in Q4-2017 or early 2018.
2018 Resource Estimate
During Q1-2018 the Company’s technical team will assess the 2017 program and determine what
additional drilling may be required prior to an independent resource evaluation. Timing of the
eventual resource studies for both Bayan Khundii and Altan Nar will be influenced by that
determination, however it is anticipated that the studies will be completed between Q2 and Q3 2018.
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 geochemical 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 and a mining license in southwest Mongolia. In
addition to the Bayan Khundii and Altan Nar projects, o ther deposits and prospects within these
licenses include: 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;
Zuun Mod – a large molybdenum-copper porphyry deposit; and Altan Arrow – an early-stage gold-
silver project. In addition to the above properties, the Company has an Alliance with Teck Resources
Limited on regional copper-gold exploration in the prospective Trans Alta i 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. T he 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