Erdene Intersects 20 Metres of 10.3 g/t Gold at Altan Nar Project and Expands Bayan Khundii and Altan Nar Drilling Program to 33,000 Metres
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Intersects 20 Metres of 10.3 g/t Gold at Altan Nar Project and
Expands Bayan Khundii and Altan Nar Drilling Program to 33,000
Metres
Halifax, Nova Scotia – October 12, 2017 – Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or " Company") is pleased to provide an exploration update on its gold projects in southwest
Mongolia, including drill results from its 100%-owned Altan Nar Gold -Polymetallic Project (“Altan
Nar”), and an update on its flagship , 100%-owned Bayan Khundii Gold P roject (“Bayan Khundii”), 16
kilometres southeast of Altan Nar, where drilling is on-going with results pending.
“Today’s results from Altan Nar are a further testament to the exceptional fertility of this emerging gold
district,” said Peter Akerl ey, Erdene’s President and CEO. “These results demonstrate significant
expansion potential for the existing deposit areas and provide exciting new discovery opportunities within
the greater 5.6 kilometre Altan Nar trend. Our continued exploration success at both the Bayan Khundii
and now the Altan Nar gold projects has led to a decision to significantly increase our 2017 drill program.
When considered in the broader district -scale context, we believe the success rate experienced by our
company at the grassroots drilling stage is a good i ndication of the region’s potential for additional
discoveries.”
News Release Highlights
Altan Nar Highlights (see attached plan maps and cross-section for reference)
New, high-grade core at Discovery Zone returns 5 metres of 29.7 g/t gold within a 20 metre
interval of 10.3 g/t gold (11.8 g/t gold equivalent) at 97 metres depth (TND-110).
Shallow, gold-bearing structure identified to the west of Discovery Zone over 100 metre strike
length with up to 14.6 g/t gold (1 metre) within zones of greater than 15 metres of greater than 1
g/t gold (TND-113 and 114).
Northeast extension to Discovery Zone traced ov er 150 metres with three holes intersecting
individual 1-metre samples with up to 7.6 g/t gold (TND-111); 37 g/t silver (TND-111); 8.8% zinc
(TND-111); and 3.6% lead (TND-117) within gold-bearing, broad phyllic alteration zones.
Deep drilling intersected multiple mineralized zones with high -grade veins as deep as 382 metres
returning up to 2.7 g/t gold, 49 g/t silver, 6.5% lead and 2.2% zinc (TND-129).
Scout drilling at the Maggie prospect, 800 metres north of Discovery Zone, returned 5 metres of
4.8 g/t gold at 31 metres depth.
Step-out drilling at Union North significantly extended mineralization, with 14.5 metres of 1.5 g/t
gold equivalent (0.9 g/t gold, 7 g/t silver, 0.89% lead -zinc) in a 200 metre step -out hole (TND-
121) and 5 metres of 3.2 g/t gold equivalent (1.1 g/t gold, 29 g/t silver, 3.3% lead -zinc) in a 340
metre step-out hole (TND-120).
High-grade veins discovered 200 metres southeast of Union North ; 7% zinc, 2.6% lead, 23 g/t
silver and 1.4 g/t gold over 1 metre (TND-122).
Exploration Update
Erdene’s 2017 drill program has been increased from 24,000 to 33,000 metres.
Expanded drill program include s expansion and definition drilling at Bayan Khundii, regional
scout drilling at newly identified targets on the Bayan Khundii licence, and follow-up drilling at
Altan Nar.
Drilling continues at Bayan Khundii with 18 holes completed since Erdene’s September 12, 2017
Bayan Khundii drill update; results pending.
Exploration Program Update
Based on 2017 drill results the Company has increased its 2017 drill program from 24,000 metres
announced in April 2017, to 33,000 metres to accommodate additional drilling at Bayan Khundii, Altan
Nar, and other new targets identified on the Bayan Khundii licence. The Company will also complete
surface exploration at its newly acquired Ulaan exploration license, located immediately west of Bayan
Khundii.
Altan Nar Drilling - Discussion of Results
Twenty-two holes, totalling 3,968 metres, were completed over a 1.8 by 1.5 km portion of the 5.6 km
long Altan Nar trend. The objective of the drill program was to test new targets and to complete step-out
drilling in areas adjacent to the Discovery Zone and Union North deposits where the Company previously
reported a NI 43-101 mineral resource estimate (see Erdene news release dated March 31, 2015 for details
on resource estimate).
Four plan maps have been attached for reference:
Discovery Zone – New High-Grade Core
Over the past 10 months the Company has identified a previously un-tested high-grade core in the central
portion of the Discovery Zone deposit that remains open at depth. This discovery was made subsequent
to the establishment of a NI 43-101 mineral resource for the Discovery Zone that was based on pre-2015,
near-surface drilling (less than 150 metres depth), which included a low-grade central core . Table 1
below displays results from the most recent drilling ( TND-110) as well as highlights of other post -
resource drilling.
Table 1. Drill Highlights from Central Discovery Zone
Hole No. Date
Reported
Intersection
Depth (m)
Interval
(m) (1)
Gold
(g/t)
Silver
(g/t)
Copper
(%)
Lead
(%)
Zinc
(%)
Gold
Equiv.
(g/t) (2)
TND-90 Oct-15-2015 92 m 5.8 m 5.4 53.1 0.03 0.51 0.97 7.0
TND-101(3) Dec-19-2016 96 m 15 m 52.3 125 0.69 2.49 2.87 56.9
TND-104 May-20-2017 133 m 8 m 6.21 91.6 0.04 1.15 1.29 8.84
TND-105 May-20-2017 100 m 14 m 7.92 43.7 0.23 0.67 1.16 9.52
TND-110 Oct-10-2017 97 m 20 m 10.3 37.5 0.13 0.79 0.93 11.8
(1) Reported intervals are not true width. At this time, there is insufficient data with respect to the shape of the minerali zed zones to calculate
true orientations in space.
(2) Gold equivalent (“AuEq”) has been used to express the combined value of gold, silver, lead and zinc as a percentage of go ld, and is
provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result.
Calculations use metal prices of US $1200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc.
(3) Hole TND -101 was an exploratory hole drilled a low, oblique angle to the mineralized Discovery Z one trend , and was oriented
perpendicular to a cross -cutting structure observed in geophysical surveys. See Erdene’s Dec 19, 2016 news release for additional technical
information on TND-101 (click here).
Hole TND-110, announced today, further increases Erdene’s understanding of the high-grade core to the
Discovery Zone and supports the carbonate base metal deposit model given the elevated concentrations of
base and precious metals, including copper. In addition to the post-resource high-grade gold intervals
reported in Table 1 above , TND -110 also intersected elevated base metal veins containing up to 6.2%
lead, 3.8% zinc, and up to 0.85% copper , see Table 2 below . The high-grade precious and base metal
intercepts identified at the Discovery Zone remain open at depth and demonstrate exceptional down-dip
potential at this new high-grade zone, which will be further defined through detailed drilling.
Table 2. Drill Highlights from Central Discovery Zone
Drill From To Interval Gold Silver Lead Zinc Gold Eq.
(g/t) (2) Hole (m) (m) (m) (1) (g/t) (g/t) (%) (%)
TND-109 162 170 8 2.71 10.6 0.11 0.32 3.09
TND-110 62 63 1 0.16 16 6.18 3.80 5.54
and 97 117 20 10.3 37.5 0.79 0.93 11.8
incl 106 111 5 29.7 44.6 0.86 1.85 31.8
incl 106 107 1 101.0 84 2.01 3.26 105.0
(1) (2) See Footnotes under Table 1 above.
Discovery Zone Extensions – Along Strike and at Depth
Eight holes totalling 1,645 metres were completed within and along potential extensions and subsidiary
structures at the Discovery Zone, and a ll holes were successful in expanding mineralization and
identifying follow-up drill targets.
A new parallel str ucture was discovered 100 m etres northwest of the Discovery Zone with two holes
(TND-113 and -114) intersecting high-grade gold and base metal mineralization, including individual 1-
metre samples with up to 14.6 g/t gold, 2.4% zinc and 3.8% lead, within 20 metres of 1.1 g/t gold at 79
metres depth (TND-113), and up to 17 metres of 1.0 g/t gold at 91 metres depth (TND-114).
Exploration at the northern extension of the Discovery Zone had previously identified mineralization as
plunging at depth to the north , however results from recent drilling now also show a bifurcation of the
mineralized area to the northeast. Drill holes TND-111, -112, -116 and -117 all intersected zones of gold-
polymetallic mineralization, adding approximately 150 metres of additional strike length to the Discovery
Zone. Multiple high-grade veins were intersected with results from 1-metre samples returning up to 7.6
g/t gold, 37 g/t silver, 3.3% lead and 8.8% zinc in hole TND -111 and 0.6 g/t gold, 126 g/t silver, 0.3%
copper, 3.6% lea d, and 3.1% zinc in hole TND -117. These high -grade veins were intersected within
broad phyllic alteration zones that returned up to 145 metres of 0.41 g/t AuEq (0.2 g/t gold, 3 g/t silver,
0.36% lead-zinc) in hole TND-111 and 80 metres of 0. 53 g/t AuEq (0.4 g/t gold, 2 g/t silver, and 0.2%
lead-zinc) in hole TND-116. All intersections within this area were within 132 metres vertical depth.
A single d eep hole (TND-129) was drilled under the Discovery Zone to a depth of 450 metres ( 390
metres vertical depth). TND-129 intersected multiple mineralized zones including 1-metre intervals up to
2.7 g/t gold, 49 g/t silver, 6.5% lead and 2.2% zinc at 382 metres depth (331 metres vertical) . One
previous deep hole tested the Discovery Zone at depths similar to TND-129; hole TND-31 was extended
from 190 to 450 metres in late 2016 and confirmed that high -grade precious and base metal
mineralization extends below the depths previously tested. TND -31 returned 1-metre samples up to 18.3
g/t AuEq at 370 metres depth (320 metres vertical depth) and up to 6.9 g/t AuEq at 401 metres depth (347
metres vertical depth).
Union North Deposit
The Union North deposit was discovered and drilled in the 2012 to 2014 period with an initial NI 43-101
mineral resource established in Q1-2015. Since that time 14 holes have been drilled with three completed
along a 400 metre eastern extension target in the most recent drill program (TND-119 to 121) and one
hole completed 200 metres southeast of Union North that intersected high-grade base metal veins (TND-
122) (Table 3) . The three , eastern step-out holes clearly demonstrate that Union North mineralization
expands significantly to the east and remains open . This area will receive additional drilling in advance
of a revised resource estimate for the deposit.
Table 3. Drill Highlights from Union North
Drill From To Interval Gold Silver Lead Zinc Gold Eq.
(g/t) (1) Hole (m) (m) (m) (1) (g/t) (g/t) (%) (%)
TND-119 38.4 42 3.6 0.06 5.3 0.44 0.78 0.76
TND-120 36.9 42 5.1 1.08 29.4 1.05 2.25 3.22
incl 39 40 1 2.43 55 1.70 3.10 5.72
TND-121 89.5 104 14.5 0.93 6.8 0.47 0.42 1.49
TND-122 105 132 27 0.14 3.0 0.19 0.53 0.56
incl 128 129 1 1.36 23.0 2.60 6.98 6.63
(1) (2) See Footnotes under Table 1 above.
Maggie Prospect
The Maggie prospect is located 800 metres north of the D iscovery Zone and 600 metres southeast of
Union North. Drilling targeted the extension of a magnetic low feature that was previously drill-tested
approximately 100 metres to the southeast (TND-64). Maggie has only received two drill holes and one
trench since discovery in 2013. Hole TND -123, announced today, is located at the northeast edge of a
large phyllic alteration zone, associated with anomalous rock chip results that include up to 15.4 g/t gold.
Results from TND-123 included 5 metres of 5.3 g/t AuEq (4.8 g/t gold, 10.4 g/t silver, and 0.8% lead -
zinc) at 31 metres depth, including 1 metre of 23.8 g/t AuEq (22.3 g/t gold) . The previously completed
drill hole at Maggie (TND -64) returned 22 metres of 1.1 g/t g old at 38 metres depth. The nearest drill
hole to these two scout holes is located at Union North, 450 metres to the west. A follow-up program for
Maggie is being designed.
Junction Prospect
The Junction prospect is located 600 metres east of the Discovery Zone and is characterized by
anomalous rock chip samples (up to 11.2 g/t gold) and soil geochemistry w ithin a 350 by 450 metre area
overlying a large gradient IP chargeability anomaly. Hole TND-127, announced today, is the first drill
hole completed at Junction an d intersected strong ly silicified volcanic breccias cut by chalcopyrite
mineralized, sheeted and stockwork quartz veins , returning 12 metres of 0.3% copper, 0.14 g/t gold and
7.5 g/t silver at 150 metres depth. Multiple targets in this prospect remain untested. The increased
concentration of copper in this, and the adjacent Southgate target areas (up to 4.4% copper over a 1-metre
interval in TND-48), suggests this region of Altan Nar may represent a higher temperature portion of the
broader mineralized zone. This new zone will be a priority for the Company in future drill programs.
Altan Nar Deposit Model
Altan Nar is considered to be a carbonate -base metal gold (“CBMG”) deposit, and is characterized by
multiple, sub-parallel, moderately- to steeply-dipping, epithermal vein and breccia zones that in all cases
remain open at depth and along strike. CBMG deposits are a sub-class of epithermal deposits that include
the most prolific gold producers in the southwest Pacific Rim including well-known deposits such as
Barrick Gold’s Porgera mine (Papua New Guinea), Rio Tinto’s formerly producing Kelian mine
(Indonesia), and Continental Gold’s Buritica project (Columbia) . CBMG deposits generally occur above
porphyry intrusions in arc settings and typically contain gangue of a carbonate, base metal mineral
assemblage and form as fracture/vein/breccias. Altan Nar has this typical gangue mineral assemblage.
Mineralized zon es in these deposits are commonly restricted to fault/fracture zones and also within
phreatomagmatic breccia zones or pipes that may extend for more than 500 m etres vertically as at the
former-producing Kelian mine.
Altan Nar Future Exploration
The Company will complete a follow -up drill program at Altan Nar in Q4 2017, focused on numerous
targets within the 5.6 km long mineralized trend , including testing extensions of the high-grade central
Discovery Zone at depth and along strike to the north and northeast. Based on upcoming 2017 drill
results, and drilling completed subsequent to the March 2015 resource estimate, the Company anticipates
generating a revised re source estimate for Altan Nar in 2018, in conjunction with a maiden re source
estimate for Bayan Khundii, where drilling is underway.
Altan Nar Background
Exploration carried out by Erdene over the past four years has established Altan Nar as a significant new
carbonate base metal gold system. Exploration work on the entire exploration license, specifically the
2013 through 2016 programs, including mapping, geochemical and geophysical survey programs, and a
multi-stage scout and resource delineation drilling program, ha s greatly expanded the areas of known
mineralization with 20 target areas now documented over a 6 -kilometre by 10 -kilometre area. The Altan
Nar prospect consists of the main mineralized, structural trend and primary location of gold-silver-lead-
zinc mineralization being approximately 5.6-kilometre by 1.5-kilometre, consisting of 18 of the 20 target
areas. Previous work has included extensive mapping, soil geochemical surveys, rock chip sampling and
geophysical surveys and the work of several experts in epithermal deposits who focused on the style and
paragenesis of mineralization, spectral analysis of alteration mineralogy , structural geology and drilling
(122 diamond drill holes totaling 18,987 metres). The Altan Nar license has a 2% net smelter returns
royalty (“NSR Royalty”) in favour of Sandstorm Gold Ltd. w ith 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 or 2 m 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 mineral ization. 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 exploration
and development of precious and base metal prospects in the Edren Terrane of Mongolia since 2009 .
Exploration success has led to the discovery and definition of several prospects and deposits including the
Company’s flagship and newly discovered, high -grade, near-surface Bayan Khundii gold project; the 5.6
km long Altan Nar gold -polymetallic mineralized trend that is host to 18 targ ets; the Altan Arrow gold -
silver prospect and the Zuun Mod molybdenum -copper deposit. In addition to the above properties, the
Company has an Alliance with Teck Resources Limited on regional copper -gold exploration in the
prospective Trans Altay 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.
The Bayan Khundii, Altan Nar and Altan Arrow projects 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%.
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 many factors, most of which are beyond its control,
and that future events and results may vary substantially f rom 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. 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