Erdene Significantly Increases Resource Estimate at the Altan Nar Gold- Polymetallic Project
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Significantly Increases Resource Estimate at the Altan Nar Gold-
Polymetallic Project
Halifax, Nova Scotia – May 10, 2018 - Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company"), is pleased to announce an updated mineral resource estimate (“Mineral
Resource”) for its 100% -owned Altan Nar gold -polymetallic project (“Altan Nar”) in southwest
Mongolia.
“We are extremely pleased with the significant increase in size and grade of today’s Altan Nar
Resource and believe it will be an excellent complement to a Global Resource Estimate expected in
Q3-2018 incorporating our near-surface, high-grade Bayan Khundii gold project, 16 kilometres to
the south east, where drilling continues ,” said Peter Akerley, Erdene’s President and CEO. “ It is
important to recognize that while Altan Nar has expanded significantly this remains an e arly-stage
discovery with multiple untested targets over the 5.6 kilometre Altan Nar trend, with limited drilling
at depth. This reflects the fact that no modern exploration took place in this new district prior to the
Erdene discoveries.”
Highlights of 2018 Mineral Resource at Reported Cut-Off Grade
(see attached figures for reference)
Indicated gold equivalent (“AuEq”) resource increased by 208% and Inferred AuEq resource
increased by 172% , compared to the Company’s March 2015 Altan Nar maiden mine ral
resource estimate.
Indicated Resource of 452,900 ounces (“oz”) AuEq averaging 2.8 g/t AuEq and Inferred
Resource of 277,100 oz AuEq averaging 2.5 g/t AuEq, within a total resource of 5.0 million
tonnes (“Mt”) Indicated and 3.4 Mt Inferred.
Indicated Resource includes 317,700 oz gold (at 2.0 g/t gold), 31,600 tonnes (“t”) zinc, 29,000 t
lead, and 2.35 million oz silver, while the Inferred Resource contains 185,700 oz gold (at 1.7
g/t gold), 23,700 t zinc, 22,300 t lead, and 865,900 oz silver.
AuEq grade increased by 12% in the Indicated category, and 19% in the Inferred category.
Gold grade increased by 18% in the Indicated category, and 13% in the Inferred category.
Approximately 90% of the Mineral Resource is within 150 metres of surface wit h all zones
open along strike and at depth.
Multiple undrilled and scout-drilled prospects along the 5.6 kilometre Altan Nar trend have the
potential for hosting additional gold-polymetallic resources.
Overview - Altan Nar Mineral Resource
Erdene announced a maiden resource estimate for Altan Nar in March 2015 incorporating results
from 71 diamond drill holes totalling 10,819 metres. Subsequently, between Q3 -2015 and Q4 -
2017, the Company completed an additional 51 diamond drill holes totali ng 7,782 metres. Data
from these additional holes are included in today’s updated Mineral Resource estimate.
The post-2015 drilling focused on expanding existing resource boundaries in the Discovery Zone
(“DZ”) and Union North (“UN”) deposits, as well as expanding and exploring for additional
mineralization within the remaining 1 6 target areas throughout the 5.6 kilometre trend . This work
resulted in the discovery of a high -grade central core in the DZ area and outlined additional
resources in the peripheral targets. The DZ drilling in particular has had a significant impact on the
overall size and grade of the updated Mineral Resource.
Altan Nar is considered to be a carbonate -base metal gold (“CBMG”) deposit that 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 throughout the 5.6 kilometre long Altan Nar trend ,
presenting a significant opportunity for resource expansion . Mineralized zones in typical CBMG
deposits are commonly restricted to fault /breccia zones that can extend for more than 500 metres
vertically. The average drill depth of the 122 holes completed at Altan Nar is 157 metres (angled ,
not vertical) with approximately 90% of the Mineral Resource within 150 metres of surface.
Statement of Mineral Resources
The reported Resource Report is based on information provided to RPMGlobal (“RPM”) by Erdene
and verified where possible by RPM. All statistical analysis and mineral resource estima tions were
carried out by RPM.
Table 1 below shows the Indicated and Inferred Mineral Resource estimate for Altan Nar as at May
7, 2018. The Mineral Res ource was completed by RPM in accordance with the recommended
guidelines of the CIM Definition Standards referenced in NI 43-101. RPM calculated the Altan Nar
Mineral Resources for a number of AuEq cut -offs, however RPM recommends reporting the
Mineral Resource at a 0.7 g/t AuEq cut-off for open pit resources, and 1.4 g/t AuEq below the same
pit shell (see “Statement of Reportable Cut -off Grade ” below). Table 1 shows the variation in
tonnage and metals content with variable cut -off grades above the pit sh ell (0.4 g/t AuEq, 1.0 g/t
AuEq and 1.4 g/t AuEq cut -off grade s), while keeping the 1.4 g/t AuEq below the pit shell
consistent. The Company will file a NI 43-101 Mineral Resource Estimate and Technical Report on
SEDAR within 45 days of this news release.
Table 1- Altan Nar Project – Mineral Resource Estimate Summary, May 7, 2018
Cut-
off
Resource
Classi-
Quantity
(Mt)
Grade Contained Metal
Au Ag Zn Pb AuEq Au Ag Zn Pb AuEq
AuEq
g/t
fication g/t g/t g/t g/t g/t Koz Koz Kt Kt Koz
0.4 Indicated 5.6 1.8 13.5 0.6 0.5 2.6 323 2,412 33.2 29.9 464
0.4 Inferred 3.7 1.6 7.5 0.7 0.6 2.3 189 901 24.5 22.8 283
0.7 Indicated 5.0 2.0 14.8 0.6 0.6 2.8 318 2,350 31.6 29.0 453
0.7 Inferred 3.4 1.7 7.9 0.7 0.7 2.5 186 866 23.7 22.3 277
1.0 Indicated 4.2 2.3 16.6 0.7 0.7 3.2 306 2,212 28.6 27.4 431
1.0 Inferred 3.2 1.8 8.2 0.7 0.7 2.7 182 837 22.8 21.5 270
1.4 Indicated 3.3 2.7 18.9 0.8 0.8 3.8 285 2,002 24.9 25.2 398
1.4 Inferred 2.9 1.9 8.6 0.8 0.7 2.8 176 795 21.5 20.4 259
Notes:
1. The Mineral Resources have been constrained by topography and a cut -off of 0.7 g/t AuEq above a pit and 1.4 g/t AuEq below the
same pit shell.
2. The Mineral Resource Estimate Summary has been compiled under the supervision of Mr. Jeremy Clark who is a full -time
employee of RPM and a Member of the Australian Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to
the style of mineralization and type of deposit under consideration and to the activity that he has unde rtaken to qualify as a Qualified
Person as defined in the CIM Standards of Disclosure.
3. All Mineral Resource figures reported in the table above represent estimates as at May 7, 2018. Mineral Resource estimates are not
precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of t he
occurrence and on the available sampling results. The totals contained in the ab ove table have been rounded to reflect the relative
uncertainty of the estimate. Rounding may cause some computational discrepancies.
4. Mineral Resource grades are reported in accordance with the CIM Standards.
5. Mineral Resources reported on a dry in-situ basis.
6. No dilution or ore loss factors have been applied to the reported Resource Estimate.
7. No allowances have been made for recovery losses that may occur should mining eventually result.
8. Gold Equivalent (“AuEq”) calculations assume metal prices of US $1,310 per ounce gold, US $18 per ounce silver, and US $2,400
per tonne lead and US $3,100 per tonne zinc and processing recoveries as per below.
Statement of Reportable Cut-off Grade
RPM’s statement of Mineral Resources has been constrained by topography and a cut -off grade of
0.7 g/t AuEq for potential open pit resources above a pit shell, and 1.4 g/t AuEq below the same pit
shell.
A pit shell was utilized to determine the maximum depth of potential open pit mining, within which
the above cut-off grades were utilized to report the Mineral Resource using a US $1,570 per ounce
gold price (20% above the US $1,310 per ounce optimi zation price) and the costs and recoveries
listed below.
The selected pit s hell was generated using the following parameters , which are based on RPM ’s
internal cost pricing within Mongolia and the preliminary metallurgical study:
Metal Prices (RPM notes this is based on eventual extr action at a future date and not the
long-term consensus forecast):
o Gold: US $1,310 per ounce
o Silver: US $18 per ounce
o Lead: US $2,400 per tonne
o Zinc: US $3,100 per tonne
Mining Cost of US $6 per tonne rock;
A block model using 10x5x5 metre blocks , which is considered the selective mining unit ,
with 5% dilution and 10% ore loss, was applied;
Processing costs of US $20 per tonne milled; and
Processing recoveries of:
o Gold: 88%
o Silver: 81%
o Lead: 81%
o Zinc: 60%
RPM highlights that the pit optimizations were used to define the depth of the various cut-off grades
to report the Mineral Resource, however , the cut-off grades applied were estimated based on a gold
price of US $1,570 per ounce . Furthermore, it is noted that , given the long strike length and
variation in grade, the potential open pit depth varies, as such , the application of a consistent depth
is not appropriate and the use of a pit optimization to define variable depths is suitable.
A gold price of US $1,570 per ounce was selected to de termine the maximum depth of potential
open pit mining based on historical prices (last 5 years). RPM notes that this price is above the
current long-term forecast, however , RPM notes that the gold price was significantly higher in the
past 5 years and, as such, has utilized a higher price to determine the maximum depth of potential
open cut mining.
To determine the potential underground mining cut-off grade an open stoping method was assumed
resulting in a total mining cost of US $35 per tonne.
While a detailed schedule and option analysis has not been completed to confirm the optimal
mining method, given the sub -vertical continuous style of mineralization within sheet-like shears
occurring near-surface within the currently defined resource areas, ope n pit mining is likely to be
appropriate, pending the option analysis. Additional mining design along with more detailed and
accurate cost estimate mining studies and testwork are required to confirm viability of extraction.
RPM notes that these pit shel ls were completed to report the contained Mineral Resources in order
to demonstrate the reasonable prospect for eventual economic extraction , and highlights that capital
expenditure has not been included, and that these pits do not constitute a scoping study or a detailed
mining study which , along with additional drilling and testwork, is required to be completed to
confirm economic viability. RPM has utilized operating costs based on in -house databases of
similar operations in the region and processing rec overies based on preliminary metallurgical test
work, along with the commodity prices noted above, in determining the appropriate cut -off grade.
Given the above analysis, RPM considers both the open pit and material below the pit demonstrates
reasonable prospects for eventual economic extraction, however , highlights that additional studies
and drilling are required to confirm economic viability.
Erdene Q2-Q4 2018 Technical Program
With the updated Mineral R esource now established at Altan Nar, Erdene will work toward
completing a maiden mineral resource estimate at its neighboring, 100% -owned Bayan Khundii
gold project, 16 kilometres southeast of Altan Nar. Erdene intends to announce a Global Resource
Estimate, for both Bayan Khu ndii and Altan Nar, in Q3 -2018. The Company is currently
completing a drill program at Bayan Khundii to follow-up on high priority structural targets in
advance of the maiden resource estimate.
Qualified Person and Sample Protocol
The Resource Estimate included in this press release was prepared under the supervision of Jeremy
Clark, RPMGlobal, Hong Kong. M r. Clark is a Qualified Person within the meaning of such term
under NI 43 -101; Mr. Clark is a Member of the Australian Institute of Geoscientists (MAIG)
Membership No 3567. Mr. Clark has reviewed this press release and consents to the inclusion in
this release of the matters disclosed based on Resource Estimate documents provide to the
Company by RPM. A NI 43-101 Mineral Resource Estimate and Technical Report will be filed on
Erdene’s SEDAR page within 45 days of this news release.
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
non-Resource Estimate technical information contained in this news release on behalf of Erdene .
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.
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 four exploration licenses and a mining license
in southwest Mongolia, where exploration success has led to the discovery and definition of several
prospects and deposits including: Bayan Khundii – the Company’s flagship and newly discovered,
high-grade, near -surface gold project ; Altan Nar – an extensive, high -grade, near -surface, gold -
polymetallic project located 16 kilometres northwest of Bayan Khundii; Altan Arrow – an early -
stage, high -grade 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; Nomin Tal – a narrow, high-grade copper-gold discovery; and Zuun
Mod – a large molybdenum-copper porphyry deposit. In addition to the a bove projects, Erdene has
an Alliance with Teck Resources Limited on regional copper -gold exploration in the prospective
Trans Altai region of southwest Mongolia. The Bayan Khundii and Altan Nar licenses 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%. For further information on the Company, please visit
www.erdene.com. Erdene has 146,400,586 issued and outstanding common shares and a fully
diluted position of 156,992,160 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, 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 w hat
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 cond itions. The
forward-looking statements are expressly qualified in their entiret y 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 oblig ation 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