Erdene Intercepts 123.5 G/T GOLD over 5 Metres Within 15 Metres of 42.8 G/T GOLD at Dark Horse GOLD Prospect Extends Discovery with Highest Grade Intersections to Date
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ERDENE INTERCEPTS 123.5 G/T GOLD OVER 5 METRES WITHIN 15
METRES OF 42.8 G/T GOLD AT DARK HORSE GOLD PROSPECT
EXTENDS DISCOVERY WITH HIGHEST GRADE INTERSECTIONS TO DATE
Press Release
Halifax, Nova Scotia
2022.02.08
Erdene Resource Development Corporation (TSX: ERD | MSE: ERDN) (“Erdene” or the
“Company”) is pleased to provide an update on recent exploration at the Dark Horse
prospect, located 2.4 kilometres north of its construction-ready Bayan Khundii Gold
Project.
Highlights
• Extended Dark Horse Mane mineralization 100 metres south
o Prospect remains open to the north, south and at depth
• Intersected highest grade mineralization at Dark Horse to date, beginning near surface
o AAD-176: 18 metres of 6.4 g/t gold beginning at surface
§ Includes 4 metres of 25.2 g/t gold
o AAD-177: 23 metres of 11.4 g/t gold beginning 1 metre downhole
§ Includes 4 metres of 59.8 g/t gold within 8 metres of 32.2 g/t gold
o AAD-178: 15 metres of 42.8 g/t gold beginning 11 metres downhole
§ Includes 3 metres of 160.4 g/t gold within 5 metres of 123.5 g/t gold
o Two holes returned intervals over 100 g/t gold (up to 195 g/t gold)
• Highlights potential for near-surface, high -grade oxide gold mineralization across
Khundii District
o Multiple targets with similar signatures on Erdene’s Khundii, Ulaan and Altan
Nar licenses
Quotes from the Company
“Today’s results include the highest grade intersections at Dark Horse to date and confirm
extension of th is extremely high grade gold oxide zone ,” said Peter Akerley, Erdene’s
President and CEO. “This expanding, near-surface zone should enhance near term cash
flow of our Bayan Khundii Gold Project and supports increased exploration for oxide gold
targets along trend and throughout our Khundii Gold District.”
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“Work is underway to assess the financial and technical impact of this mineralization on
our adjacent, construction ready Bayan Khundii Gold Project ,” continued Mr. Akerley.
“Our 2022 exploration program is under development, with follow -up drilling planned in
late Q1 to continue our efforts to demonstrate a multimillion-ounce gold district.”
Summary of Drill Results
This most recent Dark Horse drill program, completed in December 2021, was designed
to test near-surface, oxide gold mineralization south and north (along strike) of previous
drilling along the Dark Horse Mane structure . The program consisted of 23 holes, and
one hole -extension, totaling 1,586 metres. Average hole length was 66 metres,
representing an average vertical depth of 47 metres.
The drilling program was successful in identifying and extending a zone of high -grade,
near surface, gold mineralization at Dark Horse Mane south by approximately 100 metres,
while also providing evidence of intense hydrothermal alteration with locally anomalous
gold, antimony and arsenic in wider spaced drilling continuing a further 700 metres south.
Results include the highest grade gold intersections to date, including multiple 1 metre
samples, from two separate drill holes, exceeding 100 g/ t gold (up to 195 g/t gold) .
Continuity of near-surface, oxide gold mineralization has been defined over a strike length
of approximately 600 metres in the south.
Drilling in Dark Horse Mane north was successful in intersecting a broad zone of clay
alteration and extending low grade gold mineralization (15 metres of 0.64 g/t in AAD-186)
at the southern extent of the zone. Narrower zones were returned in drilling at the northern
end with the current strike length of approximately 500 metres for the gold-bearing oxide
zone at Dark Horse Mane north.
Highlights from the most recent drill holes are provided below in Table 1, and a drill hole
plan map and section are attached to this release.
Table 1: Dark Horse Q4 2021 Drilling Highlights
(Intervals averaging over 0.30 g/t gold)
Hole ID From To Interval (1) Au g/t
AAD-173 42 44 2 1.57
AAD-174 2 18 16 0.78
AAD-175 0.5 12 11.5 1.54
Incl 7 10 3 4.82
Incl 8 9 1 10.16
AAD-176 0 18 18 6.4
Incl 3 7 4(2) 25.18
AAD-177 1 24 23 11.37
Incl 6 14 8 32.32
Incl 9 13 4(3) 59.84
Incl 10 11 1 121.09
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Hole ID From To Interval (1) Au g/t
AAD-178 11 26 15 42.84
Incl 13 18 5(4) 123.47
Incl 14 17 3(5) 160.41
AAD-179 29 38 9 0.53
And 48 51 3 1.15
And 55 58 3 1.11
AAD-183 0.4 5 4.6 0.82
And 10 14 4 0.32
AAD-184 6 7 1 0.93
And 10 15 5 0.33
AAD-185 0.5 6 5.5 0.87
AAD-186 33 48 15 0.64
AAD-188 44 45 1 0.38
And 59 62 3 0.38
AAD-190 16 20 4 0.38
1. Reported intervals in this release are downhole apparent widths. Continued exploration is required to confirm anisotropy of
mineralization and true thicknesses
2. Includes four (4) 1-metre samples all greater than 10 g/t gold; range 13.14 to 59.66 g/t gold
3. Includes four (4) 1-metre samples all greater than 10 g/t gold; range 12.98 to 121.09 g/t gold
4. Includes five (5) 1-metre samples all greater than 10 g/t gold; range 39.44 to 194.61 g/t gold
5. Includes three (3) 1-metre samples all greater than 100 g/t gold; range 118.03 to 194.61 g/t gold
Dark Horse Overview
Drilling to date has defined a 1.5 -kilometre trend of alteration and gold mineralization
within the Dark Horse Mane target area that remains open along strike to the north and
south, and at depth.
Erdene discovered Dark Horse Mane, 2.4 kilometres north of the Bayan Khundii deposit,
when initial drilling , reported in early 2021, returned 5.97 g/t gold over 45 metres,
beginning 10 metres downhole, including 8 metres of 27. 1 g/t gold (AAD -58). This
discovery lies within the greater Dark Horse target area ( 38 square kilometres)
characterized by elevated gold in soil anomalism with multiple su rface rock-chip, trench
and drill core samples assay ing greater than 1 g/t gold (see Plan Map). Trace element
anomalism, geophysical anomalies related to alteration and mineralization, structures
interpreted to represent conduits for mineralizing fluids, a nd alteration signatures
supporting an epithermal mineralization model all characterize the greater Dark Horse
prospect area.
To date the Company has completed 21,673 metres of drilling in 1 90 holes ranging in
vertical depths from 21 to 3 18 metres within the greater Dark Horse prospect portion of
the Khundii mining license.
The Dark Horse Mane zone is associated with a north-south trending, linear structural
corridor which intersects deep seated northeast trending transform faults, believed to be
a conduit for primary mineralizing fluids. The N-S structure has been traced over 5
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kilometres, from the southern portion of the Bayan Khundii deposit to the northern
extension of Dark Horse. Gold mineralization is hosted within strongly altered tuffaceous
and volcanoclastic rocks, cross -cut by quartz and quartz -hematite veins and stockwork
zones. The Dark Horse Mane shallow oxide zone begins at surface, hosting supergene
enriched gold zones with values up to 195 g/t over 1 metre and ranging in thickness from
20 to 60 metres vertical depth with locally deeper oxidation along fractures . The high -
grade oxide body exhibits strong continuity along a north -south strike. Mineralization
remains open along strike and at depth. The presence of gold -bearing oxide zones
indicates that the level of ero sion, hydrological and atmospheric conditions within the
Khundii-Ulaan alteration footprint are conducive to deep oxidation and supergene
enrichment gold mineralization. This presents opportunity for the discovery of additional
near-surface, high-grade gold mineralization across Khundii district.
The near surface oxide gold zones discovered at Dark Horse Mane are the result of
oxidation of sulfide bearing epithermal veins and hydrothermal breccias within white mica
altered host lithologies . Limited deeper drilling has shown that gold bearing epithermal
veins, and associated white mica and sulfide alteration zones, have been traced up to
230 metres vertically and remain open at depth. The gold mineralization near surface at
Dark Horse Mane is related to broader area s of structurally controlled alteration and
mineralization believed to be connected to feeder structures, distributing gold bearing
fluids over a wide area as these fluids approached the paleo surface. Evidence for these
feeder structures includes a series of exposed residual quartz lithocaps , associated
locally with increasing copper anomalism at depth interpreted to predate the gold
mineralization. These lithocaps are distributed along dominant NE trending structures
believed to represent transform faults and potentially feeder conduits from a magmatic
porphyry source at depth. The high-grade gold bearing oxide zones reported today are
located proximal to the residual quartz lithocaps and hosted within tuffaceous to
porphyritic volcanoclastic units.
Moving Forward
There are multiple highly prospective areas across the greater Dark Horse area , in the
northern portion of Erdene’s 2,309 hectare Khundii Mining license that remain untested.
In addition, m uch of the drilling to date at Dark Horse Mane has concentrated on near -
surface targets, and gold mineralization at Dark Horse Mane remains open at depth and
along strike. The Company is carrying out a data compilation, interpretation and drill hole
targeting exercise for the broader Dark Horse prospect area. This work will focus on gold
anomalism, identifying feeder structures, shallow oxide gold mineralization, similar to
Dark Horse Mane, and the potential for deeper zone s of gold mineralization . The
Company’s current geological model suggests drilling to date at the Dark Horse prospect
is potentially above the high-grade boiling zone of a typical epithermal gold deposit.
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Khundii Minerals 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 o ver the past decade and is responsible for
the discovery of the Khundii Gold District comprised of multiple high-grade gold and base
metal prospects, one of which is currently being developed, the 100%-owned Bayan
Khundii Gold Project, and another which is being considered for development, the 100%-
owned Altan Nar Project. In 2021 , the Company identified two new significant gol d
prospects, Dark Horse and Ulaan.
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% discount r ate 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 2023 based on the current
project schedule.
About Erdene
Erdene Resource Development Corp. is a Canada-based resource company focused on
the acquisitio n, exploration, 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.
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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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 ass ayed 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 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 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, 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 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 gr ades
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 and 100 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 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 caus e 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 e conomic, market or business conditions. The forward -looking
statements are expressly qualified in their entirety by this cautionary statement. The
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information contained herein is stated as of the current date and is subject to change after
that date. The C ompany 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
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
Altan
Arrow
Gold Prospect
Khundii
North
Gold Prospect
DARK HORSE DRILLING CONFIRMS OXIDE GOLD AT SURFACE
Khundii – Ulaan Licenses, Bayan Khundii Deposit and Prospect Location Map
Ulaan
Exploration License
Erdene
100% Ownership
Khundii
Mining License
Erdene
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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
South
Ulaan
Gold
Discovery
Greater Dark Horse
Plan Map
Pervasive Alteration Footprint
Dark Horse Mane
Gold prospect
N N
Tourmaline
Breccia
Gold Zone
West Gate
Gold Anomaly
Bayan
Khundii
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Khundii
Long Section
Khundii
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