Erdene Provides Bayan Khundii GOLD Project Update Drilling Adjacent to the Planned Open Pit Expands Mineralization
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ERDENE PROVIDES BAYAN KHUNDII GOLD PROJECT UPDATE
DRILLING ADJACENT TO THE PLANNED OPEN PIT EXPANDS MINERALIZATION
Press Release
Halifax, Nova Scotia
2024.10.16
Erdene Resource Development Corporation (TSX:ERD; MSE:ERDN) (“Erdene” or
the “Company”) is pleased to report drill results targeting areas outside of the currently
defined reserve at the Bayan Khundii gold project, under development with Mongolian
Mining Corporation (“MMC”) and scheduled to produce first gold in mid-2025.
Bayan Khundii Gold Project Expansion Drilling
During Q3 2024, Erdene Mongol LLC (“EM”), a company jointly owned by Erdene and
MMC, completed a six-hole diamond drilling program, totalling 950 metres, to test the
potential for expansion of near-pit resources to the west and north of the planned Bayan
Khundii open-pit. All holes intersected gold mineralization. Expansion drilling intersected
gold mineralization in all holes, demonstrating the potential for resource growth and pit
extension
Table of Results
Area Hole From To Interval g/t Au
Midfield North BKD-376 95.5 146 50.5 0.85
Incl 142 144 2 12.27
West Striker BKD-377 12.7 21 8.3 0.56
And 52 58 6 0.41
And 62 64 2 0.46
And 84 86 2 1.60
And 100 102 2 0.62
And 106 148 42 7.27
Incl 117 118 1 50.68
Incl 121 125 4 35.76
Incl 144 145 1 79.01
West Striker BKD-378* 103 134 31 0.41
And 140 142 2 0.57
And 178 200 22 6.10
Incl 186 187 1 106.80
Striker Gap BKD-379* 44 51 7 0.39
And 65 68 3 0.63
And 85 94 9 0.57
And 118 129.4 11.4 0.44
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Striker Gap BKD-380 56 117 61 0.41
Incl 62 70 8 1.08
North Midfield BKD-381* 56.2 110 53.8 4.09
Incl 67 68 1 16.89
Incl 84 85 1 56.77
Incl 92 101 9 11.03
Incl 92 93 1 78.13
Incl 99 100 1 11.13
Notes:
• Reported intervals are apparent thicknesses, i.e. downhole widths. The reported drill
holes are dipping between 45 and 85 degrees and oriented to intersect SW dipping
WNW trending gold bearing veins. Additional study is required to confirm true widths.
• Holes that ended in mineralization are indicated by an asterisk (*).
A summary of results includes:
1. Striker West Area: Anomalous gold mineralization continues 200 metres west of the
planned pit and has been traced over 700 metres N-S with limited drilling, relative to
the reserve pit area. Based on a higher gold price there is strong potential to expand
the pit westward. BKD-378 tested the northern portion of Striker West and BKD-377
the central area:
o BKD-378: This hole confirmed expansion potential beyond the reported resource
boundary, intersecting epithermal breccia zones with silica gel, a characteristic
observed in feeder zones within the BK system. Assay results included 22 metres
of 6.1 g/t gold starting at a depth of 178 metres, including a high-grade interval of
106.8 g/t gold over a metre. BKD-378 ended in mineralization, with the last 5
metres averaging 2.5 g/t gold.
o BKD-377: This hole intersected multiple epithermal breccia zones with visible gold
and strong vein density. Assay results included 42 metres of 7.3 g/t gold, starting
106 metres downhole, with a notable four-metre interval containing 35.8 g/t gold
and two additional one-metre intervals reporting 50.7 and 79.0 g/t gold,
respectively. This is the best intersection reported in the Striker West area,
suggesting improved development potential to the west of the planned Bayan
Khundii mine.
2. Striker Gap Zone (between Economic Pit and Striker West): This area had been
deemed sub-grade or barren based on limited drilling; however, adjacent areas
indicated the potential for continuity of potentially ore grade zones. The objective was
to explore whether ore zones could be established to support development moving
west to access the anticipated deeper, higher grades identified in BKD-377 and 378.
o BKD-379 & BKD-380: Drilling intersected weak epithermal breccia and quartz
adularia veins in the upper potions of BKD-379 but intense quartz adularia veins
and quartz hematite stockwork veins near the bottom of the hole . BKD-380
displayed a relatively shallow and wide zone of low-grade gold mineralization. This
target area, showed mineralized zones averaging greater than 0.4 g/t gold over
30% and 45% of the hole lengths, respectively. These results increase the viability
of extending the pit towards the higher-grade Striker West area.
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3. North Midfield: The North Midfield mineralized zone exhibited potential for growth in
the northern portion of the pit trending beyond the reported resource boundary.
o BKD-376: Drilling intersected 50 metres of 0.85 g/t gold starting at 95 metres, with
an intersection of quartz-adularia veins averaging 12.3 g/t over two-metres at 142
metres, below the existing resource boundary. This suggests potential for pit
expansion beyond current boundaries and improved economics in this higher-strip
area.
o BKD-381: Drilling intersected intense quartz-hematite vein stockwork with multiple
visible gold bearing intervals extending high-grade mineralization within the
existing resource boundary. This hole returned improved grade and zone thickness
at the edge of the North Midfield mineralized zone, including 54 metres of 4.1 g/t
gold starting at 56 metres, with one-metre intervals returning 16.9, 56.8, 78.1 and
11.1 g/t gold.
These results, as well as those from the recently completed diamond drilling program
(see press release here) and a 13,500 metre reverse circulation (“RC”) drill program that
will commence next week, will be incorporated into an updated Bayan Khundii mine plan
over the coming months.
The current Bayan Khundii economic pit has been defined using a US$1,800 per ounce
gold price and a US$2,000 per ounce pit constraining factor. At current gold prices of
approximately US$2,600 per ounce, there is an opportunity to capture additional near-pit
resources. Furthermore, the presence in multiple locations of very high gold grades
provides optionality to assess underground development in the future. The exploration
drilling was designed to evaluate expansion opportunities to the north and west of the
planned economic pit.
The Bayan Khundii gold mine is currently under construction, targeting first production in
mid-2025. The project will produce an average of 85,000 ounces of gold annually,
beginning in 2026. The Project, a joint venture with Mongolia Mining Corporation,
Mongolia’s largest independent mining company, is located in the Khundii Minerals
District, which also hosts the Altan Nar (“AN”) and Dark Horse Mane (“DH”) epithermal
gold deposits, the Ulaan and Greater Dark Horse gold prospects, and the Zuun Mod
(“ZM”) molybdenum-copper porphyry deposit, and several other prospects.
Khundii Minerals District
Erdene’s deposits are in the Trans Altai 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 over the past decade and is
responsible for the discovery of the Khundii Minerals District comprised of multiple high-
grade gold and base metal prospects, one of which is currently being developed through
an alliance with Mongolian Mining Corporation, the Khundii Gold Project, which includes
the Bayan Khundii and Dark Horse deposits. In addition, the Altan Nar gold-polymetallic
project, located 20 kilometres to the northwest of Bayan Khundii is being considered for
development by the alliance.
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About Erdene
Erdene Resource Development Corp. is a Canada-based resource company focused on
the acquisition, exploration, and development of precious and base metals in
underexplored and highly prospective Mongolia. The Company has interests in three
mining licenses and one exploration license 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.
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 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 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 any 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 Erde ne’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 new BK
exploration drill holes, reported in this press release, are all dipping between 45 and 85
degrees and oriented to intersect SW dipping WNW trending gold bearing veins.
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;
however, all contiguous intervals greater than 10 g/t gold and 100 g/t gold are reported
individually for clarity.
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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 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 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
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-/
KHUNDII MINERALS DISTRICT
2024 Gold Exploration Update
Bayan Khundii Gold Deposit
Q3-2024 Drilling intersected Au
outside current resource
Ulaan SE Gold Discovery
Blind-top high grade Au
discovery
Gold-polymetallic deposit
>500Koz Au resource ~ 2 g/t
Altan Nar Gold Deposit
Zuun Mod Moly & Copper Porphyry
Largest advanced, undeveloped Mo-Cu
project in Asia; >400Mlbs Mo
Greater Dark Horse
Q2-2024 Surface exploration
multiple new Au-Ag occurrences
Zuun Mod Gold
Q2-2024 Surface Au discovery
N
License Area
Prospect
Deposit
Au
Cu
Mo
2024 Exploration
20 km
BKD-378
BKD-377
BKD-380
BKD-379
BKD-381
BKD-376
Reserve Pit Ore Trend
Q3-2024 Collar
Previous Collar
Q3-2024 Gold Assay (g/t)
≥0.1
≥1.0
Midfield North
Midfield
Striker
Striker Gap
Striker West
N
US$2000 Resource Shell
Viewing
BK Reserve Pit
Midfield
North
Midfield
Striker
Striker
West
Striker
Gap
Plan View
100m
BAYAN KHUNDII DEPOSIT – RESOURCE EXPANSION DRILLING
Q3 2024 Drilling Targeting Resource Expansion Zones
South Viewing Oblique
BKD-376
50.5m of 0.8 g/t Au including
2m of 12.3 g/t Au BKD-381
53.8m of 4.1 g/t Au including 9m of 11 g/t Au with
multiple 1m high grade intervals up to 78.1 g/t Au
BKD-380
61m of 0.4 g/t Au including
8m of 1.1 g/t Au
BKD-377
42m of 7.3 g/t Au including 4m of 35.8 g/t
Au and 1m intervals up to 79 g/t Au
BKD-378
22m of 6.1 g/t Au including high
grade intervals up to 106.8 g/t Au