Erdene Reports New Discovery at Ulaan – Intersects 3.77 G/T GOLD over 40 Metres Within 258 Metres of 0.98 G/T GOLD
TSX: ERD | MSE: ERDN
www.erdene.com 1 [email protected]
ERDENE REPORTS NEW DISCOVERY AT ULAAN – INTERSECTS
3.77 g/t GOLD OVER 40 METRES WITHIN 258 METRES OF 0.98 g/t
GOLD
Press Release
Halifax, Nova Scotia
2021.08.11
Erdene Resource Development Corporation (TSX: ERD | MSE: ERDN) (“Erdene” or the
“Company”) is pleased to announce results from its maiden drill program on the southern
portion of its 100%-owned Ulaan exploration license. The program returned a significant
new gold discovery 300 metres west of the Bayan Khundii deposit. Follow-up drilling on
the Ulaan license is currently underway.
Highlights
• Significant gold discovery at Ulaan, 300 metres west of the Bayan Khundii Gold
Deposit, with multiple holes intersecting mineralization, highlights include:
o 3.77 g/t gold over 40 metres, within 258 metres of 0.98 g/t gold beginning
92 metres downhole in UDH-10
▪ High grade quartz-adularia veins in upper portion of zone – 39.6 g/t
and 58.4 g/t gold over 1 metre intervals at 103 and 123 metres
depth, respectively
▪ Hole ended in gold mineralization at 350 metres – bottom 20
metres averaging 0.48 g/t gold
▪ Open along strike to west-northwest and at depth
o 50 metres south of UDH-10, UDH-07 intersected 100 metres averaging
0.63 g/t gold, beginning 85 metres down hole
• Adds a third development prospect within the Khundii-Ulaan alteration system
alongside the Bayan Khundii gold deposit and the Dark Horse gold prospect
Quotes from the Company:
“These exceptional results confirm a significant new gold discovery just 300 metres west
of the Bayan Khundii gold deposit,” said Peter Akerley, Erdene’s President and CEO.
“This new discovery at Ulaan, combined with recent high-grade, near-surface, oxide gold
intercepts at Dark Horse and the high-grade Bayan Khundii gold deposit demonstrates
the existence of a very large gold-bearing hydrothermal alteration system underlying the
Khundii and Ulaan licenses.”
TSX: ERD | MSE: ERDN
www.erdene.com 2 [email protected]
“Although the Khundii and Ulaan licenses host a low sulfidation epithermal system, the
broader Khundii District, including our Altan Nar intermediate sulfidation gold-polymetallic
deposit and the molybdenum -copper porphyry deposit at Zuun Mod demonstrate the
continuum and potential for discovery of arc related deposits in the Khundii Gold District,”
concluded Mr. Akerley. “We are targeting the definition of over 2 million gold equivalent
ounces by the end of 2022. Furthermore, we see the potential to add resources beyond
this target through further discoveries in our unexplored portion of the prolific gold and
copper producing Central Asian Orogenic Belt.”
Summary of the Drill Results
The maiden Ulaan gold drilling program was designed to test the southern portion of the
Ulaan license for the presence of sim ilar styles of mineralization to the Bayan Khundii
gold deposit. The program consisted of seven drill holes totaling 1,543 metres. Holes
were spaced between 50 to 450 metres apart and t ested targets over an area of
approximately two square kilometres to a maximum depth of 350 met res. Holes were
drilled at an azimuth of 030 and at an 85 degree dip and oriented core measurements
were obtained throughout. Highlights f rom the drilling program are provided below in
Table 1 and a drill hole plan map and section illustrating the location of the drill holes is
attached to this news release.
Table 1: Ulaan Q3 2021 Drilling Highlights (All intervals averaging over 0.30 g/t gold)
Hole From To Interval (1) g/t Au
UDH-07 85 185 100 0.63
And 250 254 4 1.39
And 340 350(2) 10 0.34
UDH-08 20 22 2 0.44
UDH-10 69 70 1 0.57
And 92 350.2(2) 258.2 0.98
Incl 99 139 40 3.77
Incl 103 104 1 39.57
Incl 123 124 1 58.4
UDH-13 96 112 16 0.79
And 134 154 20 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. End of hole.
3. Holes UDH-09, UDH-11 and UDH-12 did not intersect significant gold mineralization (over 0.3 g/t gold).
The gold mineralization intersected within the drill holes highlighted in Table 1 is
associated with quartz-adularia veins within a white mica altered and silicified tuffaceous
unit of the same style as Erdene’s Bayan Khundii Gold deposit. Similarly, there is little to
no associated sulfide . Drill holes UDH-07, UDH -08, UDH -10 and UDH -13 intersected
thick sequences of co arse to fine graine d lapilli tuff exhibiting intense silicification and
white mica alteration cross-cut with intense quartz -hematite-adularia veins . Drill core
TSX: ERD | MSE: ERDN
www.erdene.com 3 [email protected]
analysis supports a west-northwest strike and north-northeast dip of the high-grade veins
while geologic interpretation supports a secondary control on low grade mineralization
along the northwest dip of the volcanic sequence. However, additional work is necessary
to determine preferred vein orientations and mineralization trends.
Scout drilling (UDH-11 and UDH -12) completed 200 to 250 metres north and west-
southwest from the above highlighted holes , respectively, within southeast Ulaan ,
demonstrated continuity of geo logy both laterally and to depth . UDH-12 intersected
anomalous gold (over 0.1g/t gold) associated with intense white mica al teration and
quartz veining at 140 metres depth and both holes intersected and ended within thick
intervals of the targeted tuffaceous host unit.
Moving Forward
Erdene’s Q3-Q4 drill program consists of 8,800 metres, with approximately 4,500 metres
planned at Ulaan and 4,300 metres scheduled for Dark Horse (on the K hundii Mining
License). The Ulaan program is currently underway and will delineate the extent of
mineralization and test additional prospective areas. Results from Ulaan follow up drilling
are expected to be released in the coming months . The Dark Horse program will
commence following the completion and assessment of geophysical surveys currently
underway, which were designed to assist in identifying deeper targets.
Ulaan Overview
Erdene holds a 100% interest in the Ulaan license after acquiring the remaining 49%
interest in the property in December 2020. The Company acquired an initial 51% stake
in the license in 2017, following the discovery of the Bayan Khundii gold deposit.
Ulaan lies at the southwest end of a major alteration zone, extending for over 10
kilometres to the northeast. This alteration trend has a central zone of intense secondary
silica with a peripheral halo of sericite alteration, and an outer zone of white mica and
sericite, which hosts the Bayan Khundii gold deposit. This northeast trending alteration
area, which incorporates the Ulaan, Bayan Khundii and other mineralized targets in the
area (including Erdene’s Dark Horse and Altan Arrow prospects), is associated with a
regional structural dilational jog and associated major volcano -plutonic centre, along a
northeast trending transform fault. The various styles of alteration and mineralization
within the Ulaan target and the adjacent zone of alteration are consistent with a fertile
magmatic island arc, with evidence for possible arc migration, and overlapping or
telescoped mineralization along major structures.
The southern area of the 1,780-hectare Ulaan license is approximately 350 metres west
of the Bayan Khundii gold deposit, separate d by the Khuren Tsav license held by the
Mongolian government-owned gold company, Erdenes Alt LLC (“EA”). In early 2021, EA
announced plans to undertake further drilling and geologic work on the portion of license
adjacent to Erdene’s Bayan Khundii and Ulaan licenses.
TSX: ERD | MSE: ERDN
www.erdene.com 4 [email protected]
Based on the wide zone of gold mineralization intersected in this initial drilling program,
combined with satellite imagery, geophysical analysis, and surface alteration, Erdene
believes that the hydrothermal system that hosts the Bayan Khundii gold deposit extends
west-southwest of the Bayan Khundii deposit, across the northern portion of the Khuren
Tsav license, into the southern portion of Erdene’s Ulaan license. The northern portion of
the Khuren Tsav license is wedge -shaped and separates th e southern s ections of the
Bayan Khundii and Ulaan licenses. Erdene has an informal working relationship with EA
and both companies will explore opportunities to work together, including the sharing of
technical information, to ensure the development of their respective licenses in the best
interests of all stakeholders.
The northern portion of the Ulaan license is situated along the western boundary of
Erdene’s Khundii Mining license and has the potential to host the western extension of
the Dark Horse mineralization based on preliminary review of the geology, alteration and
mineralization at surface.
Khundii Gold 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 over the past decade and is responsible for
the discovery of the Khundii Gold District comprised of multiple high -grade gold and
gold/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. Together, these deposits comprise the Khundii Gold
Project.
The Bayan Khundii Gold Resource 1 includes 521,000 ounces of 3.16 g/t gold Measured
and Indicated (“M&I”)² and 103,000 ounces of Inferred resources at 3.68 g/t gold. Within
the M&I resource, a proven and probable open -pit reserve totals 409,000 ounces at 3.7
g/t gold (see the full 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 rate 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 early 2023 based on the
current project schedule.
1 For details of the Mineral Resources see Khundii Gold Project NI 43-101 Technical Report, Tetra Tech December 4,
2019 – SEDAR
2 M&I: 171,000 ounces of 3.77 g/t gold Measured, and 349,700 ounces of 2.93 g/t gold Indicated
TSX: ERD | MSE: ERDN
www.erdene.com 5 [email protected]
Erdene Resource Development Corp. is a Canada-based resource company focused on
the acquisit ion, 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 inform ation 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, t he 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. F or 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 Er dene’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 pe riodically shipped directly to
SGS in Ulaanbaatar via Erdene’s logistical contractor, Monrud Co. Ltd.
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
TSX: ERD | MSE: ERDN
www.erdene.com 6 [email protected]
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-/
2021 Erdene Resource Development Corp.
All rights reserved
2 Kilometres
ULAAN DRILLING CONFIRMS NEW DISCOVERY IN KHUNDII GOLD DISTRICT
Khundii – Ulaan Tenements, BK Deposit and Prospects Location Map
MAP 1
MAP 1
Ulaan Exploration License
Erdene 100% Ownership
Ulaan Exploration License
Erdene 100% Ownership
Bayan Khundii
Gold Deposit
Bayan Khundii
Gold Deposit
Dark Horse Mane
Gold prospect
Dark Horse Mane
Gold prospect
Altan Arrow
Gold Prospect
Altan Arrow
Gold Prospect
North Ulaan
Gold In Soil Zone
UNTESTED
North Ulaan
Gold In Soil Zone
UNTESTED
Tourmaline
Breccia
Gold Zone
Tourmaline
Breccia
Gold Zone
Khundii North
Gold Prospect
Khundii North
Gold Prospect
N
ULAAN
DISCOVERY
AREA MAP 2
Khundii Mining License
Erdene 100% Ownership
Khundii Mining License
Erdene 100% Ownership
2021 Erdene Resource Development Corp.
All rights reserved
ULAAN GOLD DISCOVERY – 300 METRES WEST OF BAYAN KHUNDII DEPOSIT
Bayan Khundii Gold Trend Continuation and Ulaan Gold Discovery – Map 1
Ulaan Exploration Licence
100% Erdene
Ulaan Exploration Licence
100% Erdene
Khuren Tsav Exploration
Licence 100% Erdenes Alt
Khundii Mining Licence
100% Erdene
Khundii Mining Licence
100% Erdene
Bayan Khundii
Proposed Pit
Bayan Khundii
Proposed Pit
Dark Horse
1.3 Kilometres
Dark Horse
1.3 Kilometres
500 m
Gold in Soil +
Rock Chip Anomaly
Structural Lineation
Tenement Boundary
Projected Trend
Gold Mineralization
N
MAP 2 – SE
ULAAN PROJECT
AREA
Bayan Khundii Gold Deposit
and Mineralized Trend
Section A
Discovery Hole: 40 m of 3.77 g/t
gold within 258 m of 0.98 g/t gold
Ending in Mineralization
Open at Depth
Discovery Hole: 40 m of 3.77 g/t
gold within 258 m of 0.98 g/t gold
Ending in Mineralization
Open at Depth