Erdene Provides Regional Exploration Update; High-Grade Gold Intersected at Altan Arrow, 70 g/t over 2 metres, 3.4 Kilometres North of Bayan Khundii
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Provides Regional Exploration Update; High-Grade Gold Intersected
at Altan Arrow, 70 g/t over 2 metres, 3.4 Kilometres North of Bayan Khundii
Halifax, Nova Scotia - January 24, 2018 - Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company") is pleased to provide an update on Q4-2017 exploration results for its
regional gold projects in the vicinity of the Company’s flagship Bayan Khundii Gold Project in
southwest Mongolia.
2017 REGIONAL EXPLORATION HIGHLIGHTS
(see attached plan maps and cross-sections for reference)
Results from 2017 geological mapping identify numerous zones of siliceous and vuggy
residual quartz, intense argillic alteration, and anomalous gold within a 3 by 6 km area
spanning the central part of the Bayan Khundii/Altan Arrow license.
Altan Arrow prospect further defined as a 0.5 by 1 km target area adjacent to a major
northeast-trending extensional fault containing multiple zones of epithermal quartz
veining with rock chip and trench results returning several samples in the 5 g/t to 57 g/t
gold range.
Q4 d rilling has returned the highest grades to date at Altan Arrow and demonstrated
continuity of a high-grade gold zone south of the main Altan Arrow structure with 70 g/t
gold over 2 metres (AAD-12).
Q4 drilling of a new target area 200 metres southwest of the main Altan Arrow structure
and 300 metres west of AAD-12 returned 39 g/t gold over 1 metre, near-surface.
The Khundii North target, 2.5 km east of Altan Arrow , has now been traced over 1 km
through gold in soils and rock chips with values up to 22 g/t gold.
Q4 drilling at Altan Nar included three holes and confirmed continuity of gold -
polymetallic mineralization at the Maggie prospect and identified gold mineralization
associated with subsidiary structures at the Discovery Zone.
A detailed exploration program was also completed at the neighbouring Ulaan Copper-
Gold Project over the entire license area, consisting of geological mapping, prospecting,
rock chip sampling, grid soil geochemical sampling, and induced polarization survey.
“Today’s high-grade gold results from Altan Arrow and impressive initial rock chip r esults from
Khundii North continue to demonstrate the highly prospective nature of the broader district for
the discovery of additional epithermal gold deposits,” said Peter Akerley, Erdene’s President and
CEO. “Our 2018 programs will continue to develop the se central Khundii licen se prospects
adding to our established Bayan Khundii and Altan Nar gold systems.”
DISCUSSION OF RESULTS
In addition to drilling at Bayan Khundii (results reported earlier this month ), the Company
completed significant exploration work during Q4 -2017 on several of its metal prospects in the
larger district, which is now known to host the full spectrum of arc -related base and precious
metal systems, including copper -silver and copper-molybdenum porphyries, intermediate
sulphidation / carbonate base metal gold deposits, and low sulphidation epithermal gold and
gold-silver systems . The Company’s Q4 -2017 work includ ed detailed evaluation of targets
within its 11.4 km long 100%-owned Khundii license. Particular focus was placed on the Altan
Arrow project and the Khundii North prospect, 3.4 kilometres and 3.2 kilometres north of the
Company’s Bayan Khundii project, respectively. The Company also began evaluation of its
recently-optioned Ulaan copper-gold prospect, located immediately west of Bayan Khundii , and
expanded the exploration program on its 100%-owned Altan Nar gold-polymetallic project, 16
kilometres northwest of Bayan Khundii.
ALTAN ARROW GOLD PROJECT
The Altan Arrow gold prospect is located at the intersection of proposed major deep -seated
structures, as defined by a recent structural analysis of Erdene’s license areas, described in the
Company’s January 10 , 2018 press release (click here). Today’s news release includes results
from a limited, three-hole, 450 metre drill program at Altan Arrow.
The program included one hole testing a new , highly anomalous gold-in-soil anomaly extending
over a 200 metre area to the south of the main northeast-trending structure. Follow-up surface
sampling and geological mapping of the soil anomaly in Q3-2017 resulted in the discovery of
surface quartz vein rubble that returned 27 g/t gold along an east-west trending structure . A
single hole, AAD -11, tested this new prospect and intersected multiple anomalous gold zones
spread over the 100 metre length of the hole (45 degree angle), including a shallow gold-bearing
epithermal vein at 11 metres vertical depth that returned 1 metre of 39 g/t gold and 8 g/t silver.
Anomalous gold (0.1 g/t to 0.3 g/t) was intersected surrounding this high-grade vein over a 14
metre wide zone of quartz-sericite altered Devonian andesite cut by quartz veins.
Prior to the Q4 -2017 drill program, the only hole completed along this east -west structure was
AAD-03, approximately 300 metres east of AAD -11. AAD -03 intersected 2 metres of 23.5 g/t
gold at 50 metres vertical depth. Hole AAD -12, announced today, was a 150 metre deep hole
drilled to test the continuity of that intersection at depth , and returned 2 metres of 70.1 g/t gold
and a second intersection of 2 metres of 1.3 g/t gold within 100 metres of surface.
See attached cross-sections for reference.
The drilling results discussed above (AAD-03, -11, -12) are the only holes thus far that have
tested subsidiary structures (splays) off the main northeast-trending Altan Arrow structure that
hosts the originally targeted epithermal vein s and breccias. These cross structures potentially
represent similar extensional faults to those observed at Bayan Khundii, 3.4 kilometres south.
North of the main Altan Arrow structure, a single hole (AAD–10) tested an induced polarization
chargeability target with significant zones of intense residual quartz -sericite and advanced
argillic (dickite, diapsore, pyrophyllite, kaolinite, alunite and zu nyite) alteration observed at
surface. Hole AAD -10 intersected intense quartz-sericite and advanced argillic alteration with
abundant disseminated, vein and breccia -type pyrite throughout the hole and locally elevated
copper values. Mineralization and the litho-cap style alteration is consistent with alteration
above a possible porphyry system at depth.
The northeast-trending faults running through Bayan Khundii and Altan Arrow, as outlined in
the attached Figure 2, are part of a larger network of regional northeast-trending transverse faults
that are present throughout the larger district. The thoroughgoing structure at Bayan Khundii can
be traced 4.6 kilometres northeast to the untested Khundii North prospect where areas of quartz
stockwork, chalcedonic quartz with hematite breccia clasts ha ve returned 5 rock samples greater
than 0.5 g/t gold and up to 22.7 g/t gold.
ALTAN NAR GOLD POLYMETALLIC DEPOSITS
The Company also completed a three -hole, 450 metre drill program at its Altan Nar gold-
polymetallic project (“Altan Nar”) as part of its Q4 -2017 drill program. Holes were oriented to
test extensions of gold -polymetallic mineralization along trend of the Discovery Zone deposit
and at the Maggie Zone target, 800 metres north of the Discovery Zone.
The Maggie target has received only two , wide-spaced holes in previous drilling , including a
hole completed in Q3-2017 that returned 5 metres of 5.3 g/t gold equivalent* (“AuEq”) (4.8 g/t
gold, 10.4 g/t silver, and 0.8% combined lead-zinc) at 31 metres depth, including 1 metre of 23.8
g/t AuEq (22.3 g/t gold). Q4-2017 drill hole TND-133 tested the northeast extent of a 350-metre
long structure at Maggie and intersected a highly anomalous gold and base metal zone over a 75-
metre width, locally interrupted by post-mineral dykes. Excluding 25 metres of barren dykes the
zone in TND -133 returned an average grade of 0.7 g/t AuEq (0.4 g/t gold, 4.2 g/t silver, and
0.46% combined lead-zinc) with individual gold values up to 4.8 g/t over 1 metre.
Drilling in the Discovery Zone was designed to further define mineralized subsidiary structures,
peripheral to, and trending north and northeast of, the Discovery Zone, and a similar zone
trending northeast. These holes, located approximately 75 metres and 250 metres from the
central Discovery Zone deposit area returned anomalous gold at relatively low levels with up to
3.6 g/t in TND-131 over 1 metre at 73 metres depth.
* Gold equivalent (“AuEq”) has been used to express the combined value of gold, silver, lead
and zinc as a percentage of gold, 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.
ULAAN COPPER-GOLD PROJECT
A detailed exploration program was completed over the entire Ulaan license area in H2 -2017.
Work included; detailed geological mapping, including alteration mapping and short -wave
infrared (S WIR) analysis of altered surface samples; prospecting and rock chip sampling; a
close-spaced (100 metre grid ) soil geochemical survey; and a 89 -line kilometre pole-dipole
induced polarization survey. Results from this work are being reviewed and will be reported on
in later communications.
FUTURE PLANS
The Erdene technical team has now received all results f rom its 2017 exploration program.
Compilation and interpretation of those results in Q1-2018 will lead to the development of 2018-
19 exploration plans and budgets in Q1 and with commencement of the 2018 program in early
Q2. Of particular importance in the establishment of the 2018 program will be follow -up drilling
to further evaluate the high -grade gold mineralization in Midfield North at Bayan Khundii
announced January 10, 2018, and the gold intersections announced today at Altan Arrow.
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, M ongolia. 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
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 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 interests in five exploration licenses and a
mining license in southwest Mongolia. In addition to the Bayan Khundii project, other deposits
and prospects within these licenses include: Altan Nar – an extensive, high-grade, near-surface,
gold-polymetallic project located 16 kilometres northwest of Bayan Khundii that the Company is
actively advancing; Altan Arrow – an early -stage gold -silver project 3.5 kilometres north of
Bayan Khundii; Ulaan – a recently acquired copper -gold porphyry prospect adjacent to Bayan
Khundii; Khuvyn Khar – an early -stage, copper -silver porphyry project with multiple drill
targets and significant copper intersecti ons; Nomin Tal – a narrow, high -grade copper -gold
discovery; and Zuun Mod – a large mol ybdenum-copper porphyry 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 Alta i region of southwest Mongolia. 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%. 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.
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, guida nce 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 cau tions 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 ma rket 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.
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
No Regulatory Authority Has Approved or Disapproved The Contents of This Release