Erdene Expands Mineralization at Bayan Khundii With 108 Metres of 2.8 g/t Gold in Step-Out Hole North of Midfield Zone and 10 Metres of 12.8 g/t Gold in Step-Out Hole East of Striker Zone
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Expands Mineralization at Bayan Khundii With 108 Metres of 2.8 g/t Gold
in Step-Out Hole North of Midfield Zone and 10 Metres of 12.8 g/t Gold in Step-Out
Hole East of Striker Zone
Halifax, Nova Scotia – June 8, 2017 – Erdene Resource Development Corp. (TSX:ERD) ("Erdene"
or "Company") is pleased to provide additional assay results from the Company’s on-going 2017 drill
program at its 100% owned Bayan Khundii Gold P roject (“Bayan Khundii”) in southwest Mongolia
where two drill rigs are currently operational.
Highlights (see attached figures for reference)
New zone discovered under cover north of Midfield Zone;
o Hole BKD -110, one of four previously announced step-out holes where visible gold was
observed, and located 60 metres north of Midfield, returns 108 metres of 2.8 g/t gold,
including 20 metres of 7.2 g/t gold
o Hole BKD -111, where no visible go ld was observed in drill core, and located 50 metres
north of Midfield and 40 metres southeast of BKD -110, returns 55 metres of 2.9 g/t gold,
including 25 metres of 5.3 g/t gold
o Results pending for two step -out holes located 130 metres and 200 metres north of Midfield
(BKD-154 and BKD-140) where visible gold has been observed in drill core
Drilling in the Northeast Zone, 500 metres northeast of Midfield, returns 14 metres of 0.75 g/t
gold from surface (including 2 metres of 4.4 g/t gold) and 21 metres of 0.72 g/t gold at 65 metres
depth in hole BKD-122
Step-out hole BKD-118, the last of the four holes where visible gold was observed and located
90 metres east of Striker Zone, returns 1 0 metres of 12.8 g/t gold, opening up a large un -tested
area east of Striker for additional exploration
Drilling extends the Striker down-dip to the southwest with 20 metres of 2.6 g/t gold from 90 to
110 metres (BKD-129)
Drill results to continue throughout Q3-2017
Drill Program Summary
The drill holes discussed today include three holes completed north of the Midfield Zone (BKD -110 to -
112), five holes drilled east of the Midfield Zone (BKD -113 to -117), one hole completed east of the
Striker Zone (BKD -118), three holes completed south of the Striker Zo ne (BKD-119. -128 and -129),
and four holes completed in the No rtheast Zone (BKD-120 to -123). A plan map has been attached for
reference.
Northern Extension of the Midfield Zone
Holes BKD-110 and BKD-111 successfully intersected a new gold zone north of the Midfield Zone (see
Table 1 below) and support the extension of the high-grade corridor that runs north-northeast from Gold
Hill through Striker and now beyond Midfield, and trending towards the Northeast Zone, 500 metres
northeast of Midfield. Results are pending for two step-out holes 130 metres and 200 metres north of the
Midfield Zone (BKD-154 and BKD-140) where visible gold has been observed in drill core.
Hole BKD-110 was collared 60 metres north of the northernmost hole at the Midfield Zone. The hole
targeted a geophysical resistivity high anomaly and intersected 108.3 metres of 2.8 g/t gold starting at
97.7 metres (69 metres vertical depth) including a 20-metre interval of 7.2 g/t gold . The hole contained
strong to moderate silica -illite alterat ion with numerous quartz veins, some with specularite and/or
visible gold. As shown in the attached photo from 144 metres depth, the visible gold is locally
concentrated in the centre of recrystallized comb -textured quartz vein s. This represents the most
strongly mineralized comb -textured vein observed to date at Bayan Khundii. Mineralization continued
to 206 metres (146 metres vertical depth) where it intersected an un -mineralized sequence of ash tuff
and underlying fine-grained lapilli tuff.
Hole BKD-111 was collared 40 metres east-southeast of BKD-110, and 50 metres north-northeast of the
northernmost hole at the Midfield Zone. The hole intersected 55 metres of 2.9 g/t gold, including 25
metres of 5.3 g/t gold. It should be noted that no visible gold was reported in this hole. BKD -111
terminated in a post-mineralization syenite intrusion at 185 metres depth (131 metres vertical).
Hole BKD -112, located 50 metres east of BKD -111, intersected 134 metres of unmineralized
Cretaceous sediments followed by a post-mineralization syenite intrusion.
Importantly, holes BKD-140 and BKD-154 (results pending), located 90 metres northeast and 50 metres
north of BKD -112 respectively, contained visible gold in drill core . These holes intersected altered
Devonian tuffs at 61 to 69 metres vertical depth indicating the thick Cretaceous cover observed in BKD-
112 thins significantly to the north and northeast. A thinning of the Cretaceous cover to the northeast is
also suggested by geophysical resistivity surveys.
These step-out results confirm that gold mineralization exists under cover north of the Midfield Zone
and demonstrate the potential for the identification of additional gold mineralization towards the
Northeast Zone, located 400 metres to the northeast of BKD-111.
Table 1. Bayan Khundii drill highlights from new gold zone north of Midfield Zone
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-110 97.7 206 108.3 2.82
incl 97.7 153 55.3 2.83
incl 144 145 1 115
and 164 206 42 3.55
incl 169 189 20 7.23
incl 177 182 5 27.0
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
incl 177 178 1 108
BKD-111 130.6 186 55.4 2.86
incl 150 175 25 5.29
incl 150 151 1 44.0
incl 162 163 1 33.1
(1) Reported intervals are not true width. At this time, there is insufficient data with respect to the shape of the minerali zed
system to calculate true orientations in space. They represent drill intersection widths from holes drilled at a dip of -45
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).
New Zone East of Striker Zone
A single hole was completed 90 metres east of the Striker Zone (BKD-118). The hole was a step-out
hole targeting a potential eastern exten sion of the Striker Zone under younger cover. BKD -118
intersected high-grade gold mineralization including 10 metres of 12.8 g/t gold from 10 6 to 116 metres
(see Table 2). This new zone opens up a large un -tested area east of Striker for additional exploration .
The Company plans to complete additional drilling in this area before the end of Q2-2017.
Table 2. Bayan Khundii drill highlights from new zone east of Striker Zone
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-118 83 84 1 4.88
and 106 116 10 12.8
incl 113 114 1 121
(1) Reported intervals are not true width. At this time, there is insufficient data with respect to the shape of the minerali zed
system to calculate true orientations in space. They represent drill intersection widths from holes drilled at a dip of -60
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).
Northeast Zone
Four, wide -spaced drill holes were completed in the Northeast Zone, 500 metres northeast of the
Midfield Zone (BKD -120 to BKD -123). All holes, except BKD -120, intersected altered and
mineralized Devonian volcanic units. Hole BKD-122 returned the highest and widest grades reported in
this area to date. This hole, located on the so uthern boundary of an outcropping area of altered
Devonian tuffs, returned 14 metres of 0.75 g/t gold from surface, including a 2 metre interval from 11 to
13 metres that returned 4.4 g/t gold . In addition, a 61-metre interval from 63 to 124 metres averag ed
0.34 g/t gold , including 21 metres of 0.72 g/t gold starting at 65 metre s depth. Additional follow-up
drilling is now planned for this area.
Table 3. Bayan Khundii drill highlights from the Northeast Zone
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-122 1 15 14 0.75
incl 11 13 2 4.43
and 63 124 61 0.34
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
incl 65 86 21 0.72
(1) Reported intervals are not true width. At this time, there is insufficient data with respect to the shape of the minerali zed
system to calculate true orientations in space. They represent drill intersection widths from holes drilled at a dip of -85 and
oriented to the north-northeast. The Bayan Khundii mineralization is interpreted to be moderately dipping (approximately 40
to 50 degrees to the southwest).
South of Striker Zone
A series of three , 20-metre spaced step -out holes (BKD -119, -128 and -129) were designed t o test the
down-dip extension of the Striker Zone to the southwest. BKD-129 intersected 20 metres of 2.6 g/t gold
from 90 to 110 metres a nd included an 8 -metre interval of 5.7 g/t gold . Hole BKD-128 intersected 42
metres of 0.32 g/t gold from 96 to 138 metres and hole BKD -119, the western-most of the three holes,
intersected 44 metres of 0.32 g/t gold from 106 to 150 metres depth. These th ree holes were successful
in extending the Striker Zone down-dip. The Striker Zone remains open in all directions.
In addition, BKD -128 intersected 14 metres of 2.81 g/ t gold from surface. This near -surface
mineralization was previously reported in several other holes in the vicinity of BKD -128, including:
BKD-17, 0 to 12 m etres of 2.3 g/t gold; BKD -28, 0.8 to 19 metres of 1.1 g/t gold; BKD-46, 2.3 to 19
metres of 16.7 g/t gold; and BKD-51, 0 to 9 metres of 1.0 g/t gold. This series of holes defines a zone of
significant mineralization at surface in this area vertically above the Striker Zone.
Table 4. Bayan Khundii Drill Highlights from South of the Striker Zone
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-119 106 150 44 0.32
BKD-128 0 14 14 2.81
incl 0 8 8 4.45
incl 1 2 1 14.8
and 96 138 42 0.32
BKD-129 90 110 20 2.57
incl 98 106 8 5.69
incl 104 105 1 18.8
(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 -50
and oriented to the north -northeast. The Bayan Khundii mineralization is interpreted to be moderately dip ping
(approximately 40 to 50 degrees to the southwest).
East of Midfield Zone
A series of drill holes (BKD-113 to 117) were completed east and southeast of the Midfield Zone and
intersected a combination of Cretaceous sediment ary rock s, less altered and mineralized Devonian
volcanic rocks and a syenite intrusion. All holes intersected low levels of anomalous gold mineralization
(i.e. greater than 0.1 g/t gold and up to 1.36 g/t gold) over relatively narrow intervals in both the
Devonian volcanic rocks and at the basal conglomerate contact. However, as noted above, holes BKD-
140 and BKD -154, located north and northeast of this area and for which results are pending , both
contained visible gold in drill core. Holes BKD-140 and BKD-154 intersected altered Devonian tuffs at
61 and 69 metres vertical depth, respectively, indicating the deeper intervals of the overlying Cretaceous
units observed in this area east and southeast of the Midfield Zone are thinning to the north , consistent
with our interpretation of the geophysical resistivity surveys.
2017 Bayan Khundii Drill Program Summary
The initial Q2-Q3 2017 exploration program at Bayan Khundii , which commenced in mid April, will
include a projected 20,000 metres of dia mond drilling, designed to initially expand areas of gold
mineralization surrounding the Gold Hill, Striker and Midfield zones , and to identify new zones
elsewhere within the larger 2 -kilometre by 1.8 -kilometre Bayan Khundii project area. Once complete,
any new or expanded zones will receive more detailed drilling to increase confidence in advance of an
eventual resource estimate. One drill rig is continuing with the exploration program while the second
drill rig is dedicated to the closer-spaced resource delineation program.
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. An early rock-chip sampling program
revealed multiple very high -grade surface quartz veins that returned up to 4,380 g/t gold , leading to a
comprehensive exploration program that has included: geological mapping; soil geochemical survey s;
additional surface rock chip sampling; a ground magnetic survey; gradient array and dipole -dipole
induced polarization surveys; and the completion of 11,300 meters of drilling in 96 drill holes (as of Q4-
2016). 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 analysi s. Drilling has revealed the presence of
very high gold grades, with up to 306 g/t gold over 1 -metre interval s, within broad mineralized
envelopes, with up to 131 metres of 3.9 g/t gold, including 80 metres of 6.0 g/t gold. Detailed studies
indicate the mineralized zones can be characterized as low -sulphidation, quartz -illite-adularia type
mineralization that was presumably formed in a back-arc 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.
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 m etre or 2 m etre
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 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 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, other deposits and prospects within these licenses
include: Khuvyn Khar – an early-stage, copper-silver porphyry project with multiple dril l 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 145,550,586 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 l aws. 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 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 an d 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 chan ge 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