Erdene Expands Mineralization at Zuun Mod Molybedenum-Copper Project
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ERDENE EXPANDS MINERALIZATION AT ZUUN MOD
MOLYBEDENUM-COPPER PROJECT
Highlights:
• Drilling from surface to 150 metres depth returned multiple intersections of ore-
grade mineralization in areas modelled as waste
• High-grade intersections, greater than 0.1% MoEq1 were returned from multiple
holes over widths of 6 to 18 metres
• Hole ZMD-98 extended to 450 metres, intersected near continuous Mo and Cu
mineralization over 374 metres, averaging 0.066% MoEq
• Resource model will be updated with 2025 drilling results ahead of a planned
Preliminary Economic Assessment expected to be delivered in mid-2026
Press Release
Halifax, Nova Scotia
2026.02.17
Erdene Resource Development Corporation (TSX: ERD | OTCQX: ERDCF | MSE:
ERDN) (“Erdene” or the “Company”) is pleased to announce results from drilling and
to provide an update on technical and economic studies at its wholly owned Zuun Mod
(“ZM”) molybdenum-copper project, 35 kilometres east of the Bayan Khundii Gold Mine,
in the Khundii Minerals District in southwestern Mongolia (See Figures 1 and 2).
Quotes from the Company
Peter Akerley, Erdene’s President and CEO stated, “Recent drilling at Zuun Mod
confirmed continuity and improved the grade of molybdenum mineralization in near
surface zones of the deposit. Additionally, drilling at depth demonstrated continuity in the
northern portions of the deposit. These results should expand near surface resources at
Zuun Mod, and will be incorporated in a Preliminary Economic Assessment targeted to
be delivered in mid-2026.”
Mr. Akerley continued, “Improved infrastructure in the Khundii Minerals District and strong
molybdenum and copper demand support the development of the Zuun Mod deposit.
Simultaneously we are developing drill targets through deep geophysics for our Khuvyn
Khar copper discovery, which is part of the same large porphyry system.”
1 MoEq%=Mo% + Cu% * 0.27504 and assumes 83% Mo and 81% Cu metallurgical recoveries, and based on Mo price of US$15.4/lb
and Cu price of US$4.34/lb
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Zuun Mod Drill Program – Q4 2025
A 3,362-metre, 24-hole drill program was completed on the wholly owned Khuvyn Khar
license, which hosts the Khuvyn Khar copper porphyry system, including the Zuun Mod
molybdenum-copper deposit in late 2025. The program included 18 holes testing the
upper 150 metres of the Zuun Mod deposit, and one hole extension (ZMD-98), seeking
to improve confidence and continuity of molybdenum (“Mo”) mineralization in the North
Racetrack area, at depth. With the exception of the extension of hole ZMD-98, all holes
were drilled at an angle of between -45 and -60 degrees. Two additional holes (ZMD-162
and 163) were drilled to test copper (“Cu”) porphyry targets (see release here) and a
further three scout holes were drilled to test a gold prospect 3.8 kilometres west of the
Zuun Mod deposit. Results from this program will be incorporated into an updated mineral
resource estimate the will be used as the basis for a preliminary economic assessment
(“PEA”), scheduled to be delivered in mid-2026.
The near surface drilling intersected high-grade Mo and Cu mineralization within the
upper 130 metres vertically. Multiple holes returned grades exceeding 0.07%
Molybdenum Equivalent (“MoEq”) over downhole lengths of up to 112 metres, with
multiple holes ending in mineralization. The results support the updated resource model,
confirming both near vertical and sub-horizontal orientation of mineralization and infilling
areas previously modeled as having low or no mineralization.
Extension hole ZMD-98, located in a lower confidence northern portion of the deposit,
intersected nearly continuous molybdenum and copper mineralization, and ended in
mineralization at 450 metres depth. When combined with the previously reported results,
the hole returned 374 metres (76 to 450 metres) of 0.066% MoEq within the central
portion of the North Racetrack zone. Future drilling will focus on this high grade zone,
which remains open both vertically and laterally.
Taken together, these results are anticipated to positively impact the Project’s mineral
resources, building upon the update reported in October 2025 (see release here). A
summary of significant assay results are included in Table 1.
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Table 1 - Summary of Significant Assay Results - Zuun Mod Mo-Cu Deposit
Hole ID From (m) To (m) Width (m) Cu % Mo % MoEq % (3)
ZMD-98(1) 76 450(2) 374 0.058 0.050 0.066
Incl 324 338 14 0.096 0.121 0.147
Incl 408 426 18 0.094 0.113 0.139
ZMD-143T 40 74 34 0.048 0.043 0.056
ZMD-145T 76 126 50 0.061 0.050 0.067
ZMD-146T 71 84 13 0.038 0.059 0.070
ZMD-147 124 140(2) 16 0.131 0.100 0.136
ZMD-148 100 140(2) 40 0.050 0.055 0.068
ZMD-149 76 94 18 0.036 0.033 0.043
ZMD-150 94 122 28 0.028 0.072 0.079
ZMD-151 36 122 86 0.040 0.056 0.066
Incl 78 88 10 0.035 0.111 0.120
And 136 142 6 0.056 0.084 0.099
ZMD-152 112 130(2) 18 0.078 0.043 0.064
ZMD-153 38 130(2) 92 0.051 0.058 0.072
Incl 84 102 18 0.061 0.112 0.128
ZMD-154 72 110 38 0.074 0.058 0.078
Incl 80 88 8 0.111 0.136 0.166
ZMD-155 70 110 40 0.044 0.050 0.062
ZMD-156 8 120(2) 112 0.063 0.055 0.072
Incl 86 98 12 0.074 0.112 0.133
ZMD-157 84 125(2) 41 0.070 0.052 0.071
ZMD-159 20 40 20 0.051 0.046 0.060
ZMD-161 50 78 28 0.049 0.062 0.075
Incl 50 56 6 0.047 0.117 0.130
(1) ZMD-98 was extended from 150m to 450m.ZMD-98 0m to 150m results previously reported.
(2) Hole ended in mineralization
(3) MoEq%=Mo% + Cu% * 0.27504 and assumes 83% Mo and 81% Cu metallurgical recoveries, and
based on Mo price of US$15.4/lb and Cu price of US$4.34/lb
Zuun Mod – Preliminary Economic Assessment
Given prevailing market conditions and the longer-term outlook for molybdenum and
copper, the Company has begun work on a PEA for Zuun Mod. Today’s drill results will
be incorporated into an updated mineral resource model during Q1-2026, after which
mining studies will be undertaken, including optimization, preliminary design, fleet
selection, and scheduling. Metallurgical testwork is also planned for multiple zones of the
deposit to confirm recovery assumptions.
The development of infrastructure associated with the Company’s Bayan Khundii mine
and other operations in the surrounding district are expected to contribute positively to
the development potential of Zuun Mod, supporting transportation, supply chains, and
labor resources. Environmental and permitting studies will be undertaken in parallel
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throughout the year, alongside costing and financial modeling. The PEA is targeted for
completion in Q3 2026.
Khuvyn Khar Drilling Results
The northern portion of the Khuvyn Khar copper porphyry complex hosts a large area of
disseminated copper mineralization associated with an approximately 20 square
kilometre zone of hydrothermal altered intrusive units and breccias. Copper mineralized
intervals include hydrothermally altered intrusive breccias with potassic altered and
mineralized fragments suggesting a deeper source of mineralization. The highest-grade
copper mineralization was reported in January, in hole ZMD-162, which was designed to
expand on the mineralization intersection in ZMD-121, completed in late 2010. ZMD-162
returning 65 metres of 0.63% copper and 2.9 g/t silver mineralization, including a higher-
grade zone of 30 metres averaging 1.25% Cu and 6.1 g/t Ag.
A second hole, ZMD-163, targeting a near surface alteration zone to the north of ZMD-
162, intersected wide zones of anomalous Cu mineralization, including 24 metres of 0.1%
Cu and ended in anomalous Cu mineralization.
Further drilling is required to further test the Cu-porphyry potential of the Khuvyn Khar
prospect area. A program of deep geophysics is being developed to aid in the
interpretation of the very large Khuvyn Khar porphyry system and aid in identifying
additional drill targets.
Table 2 - Summary of Significant Assay Results - Khuvyn Khar Cu Prospect
Hole ID From (m) To (m) Width Cu % Ag g/t
ZMD-162 286 351 65 0.630 2.900
Incl 298 328 30 1.250 6.100
ZMD-163 8 104 96 0.074 -
Incl 24 48 24 0.106 -
AND 122 200(1) 78 0.049 -
(1) End of Hole
Sundown Gold Prospect
The Sundown gold prospect (“Prospect”) is located 3.8 kilometres west of the Zuun Mod
Molybdenum-Copper deposit on the Khuvyn Khar mining license. The prospect consists
of a series of narrow east-west trending oxidized quartz veins mapped along a strike
length up to 100 metres. Surface sampling conducted by Erdene over the Prospect
returned gold grades up to 5.5 g/t gold.
In December 2025, three scout holes (ZMD-164, 165 and 166) were drilled to test
separate targets spaced approximately 100 metres apart.
Two of these holes (ZMD-164 and ZMD-165) intersected nearly continuous elevated gold
values over the entire hole length, beginning from surface, including a 28 metre thick
stockwork zone comprised of fine-grained sulphide and silica veinlets cutting a monzonite
porphyry with including 5 metres of 0.19 g/t gold in ZMD-164. ZMD-165 intersected 3
metres of 0.27g/t gold and 4 metres of 0.20 g/t gold within the same stockwork veined
monzonite porphyry unit interested in ZMD-164.
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About the Zuun Mod Molybdenum-Copper Project
The Zuun Mod Molybdenum-Copper Project is located in Bayankhongor Province,
Mongolia, 180 kilometres northwest of a major mining district and the border with China,
the world’s largest copper and molybdenum consumer and steel producer. The 100%
owned 6,041-hectare mining license, underpinning the Project, was issued in 2011 and
is valid for up to an additional 60 years. The Project is located approximately 35 kilometres
east of Erdene’s Bayan Khundii Gold Project.
Erdene undertook a multi-year exploration program outlining the Zuun Mod molybdenum-
copper deposit, within the large Khuvyn Khar copper porphyry complex and identified
multiple copper and molybdenum prospects, within the outer rim of the 16-kilometre
circumference porphyry complex. Given the Company’s focus on its gold projects in
recent years, only modest exploration and technical studies have been conducted over
the Khuvyn Khar license since 2011.
In October 2025, Erdene released an updated resource statement for the Zuun Mod Mo-
Cu deposit. The updated mineral resource includes Measured and Indicated resources
of 271.1 million tonnes (“Mt”) grading 0.056% Mo and 0.064% Cu (0.073% Moly
Equivalence (“MoEq”)) for 439.2 million pounds (“Mlbs”) MoEq. As well as an Inferred
resource of 269.1 Mt grading 0.051% Mo and 0.059% Cu (0.070% MoEq) for 416.3 Mlbs
MoEq. The cut-off grade for the resource is 0.035% Mo and constrained to a conceptual
pit based on US$22/lb Mo. The MoEq was calculated using the following formula: MoEq%
= Mo % + Cu % * 0.27504 and assumes 83% Mo and 81% Cu metallurgical recoveries.
Please refer to the Company’s October 10, 2025, press release for further details.
Qualified Person
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 combined multi -element ICP-OES
(Inductively coupled plasma optical emission spectroscopy).
Erdene’s drill core sampling protocol consisted of collection of samples in 1 to 2 metre
intervals over the entire length of the drill hole, excluding minor post-mineral lithologies
and dykes as required. 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 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.
Reported intervals are apparent thicknesses, i.e., downhole widths. The Zuun Mod drill
hole (reported in this release) was dipping at 70 degrees. 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.
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About Erdene
Erdene Resource Development Corp. is a Canada-based resource company producing
gold at the high-grade, low-cost Bayan Khundii Gold Mine in underexplored and highly
prospective Mongolia. The Company has interests in a portfolio of precious and base
metal projects near the Bayan Khundii Gold Mine in the Khundii Minerals District, which
provides a robust organic growth pipeline. Erdene Resource Development Corp. is listed
on the Toronto (“ERD”) and the Mongolian stock (“ERDN”) exchanges and OTCQ X
Market (“ERDCF”). 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.
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 several 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 general economic, market or business cond itions. 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 oblig ation 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
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-/
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