Erdene Steps Out 280m from Midfield with Multiple Mineralized Holes; 60m of 1.5 g/t Gold; Bayan Khundii Strike Now Exceeding 1.3km; Strengthens Down-Dip of Midfield with 24m of 6.5 g/t Gold
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Steps Out 280m from Midfield with Multiple Mineralized Holes; 60m of 1.5
g/t Gold; Bayan Khundii Strike Now Exceeding 1.3km; Strengthens Down-Dip of
Midfield with 24m of 6.5 g/t Gold
Halifax, Nova Scotia – June 29, 2017 – Erdene Resource Development Corp. (TSX:ERD) ("Erdene"
or "Company") is pleased to announce results from the Company’s 2017 drill program at its 100%
owned Bayan Khundii Gold Project (“Bayan Khundii”) in southwest Mongolia.
Highlights
• Step-out drilling north of Midfield Zone extends gold mineralization a further 280 metres towards
the Northeast Zone in a series of 80-metre spaced holes, effectively doubling the length of the
known mineralized trend under cover;
o 84 metres of 1.1 g/t gold, 130 metres northeast of Midfield (hole BKD-154)
o 18 metres of 3.0 g/t gold within 60 metres of 1.5 g/t gold, 200 metres northeast of Midfield
(hole BKD-140)
o 32 metres of 1.6 g/t gold, 280 metres northeast of Midfield (hole BKD-138)
• Drilling confirms continuity of mineralization at Midfield Zone and returns 17 metres of 8.2 g/t
gold within 131 metres of 1.8 g/t gold (hole BKD-150)
• Drilling confirms strong mineralization between Striker and Midfield Zones and returns 24 metres
of 6.5 g/t gold, within 150 metres of 1.5 g/t gold (hole BKD-153)
• Bayan Khundii drill results to continue throughout Q3 2017
Two plan maps and a cross-section have been attached for reference.
“Drilling under cover, north and northeast of the Midfield Zone has successfully extended gold
mineralization in a series of holes trending towards the Northeast Zone while follow-up drilling between
Striker and Midfield continues to demonstrate down-dip continuity of Midfield mineralization,” said Peter
Akerley, Erdene’s President and CEO. “The 2017 drill program has now established continuity of
significant gold mineralization over a 1.3 kilometre long trend that is locally up to 450 metres wide and
remains open. We are roughly half way through our initial 2017 drill program with results continuing
throughout Q3 2017.”
Extension of Midfield Zone
A series of twelve, 40 to 80 metre spaced step-out holes were completed in the area north and northeast of
the Midfield Zone with the majority of these holes intersecting the gold-bearing host silicified and illite-
altered Devonian volcanic units (see Table 1 below). The two holes reported to contain visible gold in the
Company’s June 8 news release both returned significant intersections; BKD-140 returned 35 metres of
2.1 g/t gold and BKD-154 returned 84.4 metres of 1.1 g/t gold. The most northerly hole, BKD -138,
returned 32 metres of 1.6 g/t gold. Gold mineralized volcanics have now been traced from the surface-
exposed Striker Zone, to the north under the younger Cretaceous cover for 500 metres (BKD-138), to
within 200 metres of the Northeast zone where BKD-122 (see June 8, 2017 release) returned the highest
and widest grades reported in this area to date.
These new holes, combined with the drill holes reported on June 8, BKD-110 (108.3 metres of 2.8 g/t
gold) and BKD-111 (55 metres of 2.9 g/t gold, including 25 metres of 5.3 g/t gold), located north of
Midfield, now effectively double the length of the known gold mineralized trend under cover and further
support the continuous extension of the north-northeast trending, high-grade corridor for over 1 kilometre
from Gold Hill through Striker, Midfield, and now towards the Northeast Zone. The Company plans to
further define this new area with additional closer-spaced drilling before the end of Q3 2017.
Table 1. Bayan Khundii drill highlights northeast extension of Midfield Zone
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-138 132.3 220 87.7 0.79
incl 134 166 32 1.64
incl 136 137 1 33.1
BKD-139 50 62 12 0.36
BKD-140 67.3 127 59.7 1.47
incl 85 120 35 2.14
incl 100 118 18 3.01
incl 102 103 1 13.6
BKD-141 157 162 5 0.40
and 216 218 2 1.35
BKD-142 142.5 158.8 16.3 0.30
BKD-147 153.5 197.8 44.3 0.81
incl 181 195 14 1.53
BKD-151 107.8 188 80.2 0.30
BKD-154 (2) 83.8 168.2 84.4 1.14
incl 83.8 104 20.2 1.94
incl 99 100 1 11.1
incl 120 132 12 2.26
incl 154 162 8 2.52
(1) Reported intervals are not true width. At this time, there is insufficient data with respect to the shape of the minerali zed
system to calculate true orientations in space. They represent drill intersection widths from holes drilled at a dip of -55 to -65
degrees and oriented to the north-northeast. The Bayan Khundii mineralization is interpreted to be moderately dipping
(approximately 40 to 50 degrees to the southwest).
(2) BKD-154 contains 9 contiguous meters of less than 100 ppb gold
A series of holes to the northwest of the mineralized Midfield Zone, BKD-145, -146, -152, -158 and -159,
all intersected strongly altered Devonian volcanic units, however, these holes did not return significant
gold mineralization. Another hole, BKD-155, located northeast of Midfield intersected syenite directly
below the Cretaceous unconformity.
Follow-Up Drilling at Midfield Zone
The Company completed a single follow-up hole within the south-central portion of the Midfield Zone
(BKD-150) to test an area of projected shallow cover and to increase confidence in the main mineralized
Midfield Zone. The hole intersected the mineralized Devonian unit at 21.5 metres depth (16 metres
vertical depth), returning 131 metres of 1.8 g/t gold to 153 metres depth (111 metres vertical depth),
where it ended in a post-mineralization syenite porphyry. The 131 metre interval included 15 metres of
2.1 g/t gold at 26 metres depth (19 metres vertical depth) and 17 metres of 8.2 g/t gold at 89 metres depth
(65 metres vertical depth). See Table 2 below.
Table 2. Bayan Khundii drill highlights from Midfield Zone
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-150 21.5 152.9 131.4 1.77
incl 26 41 15 2.10
incl 38 41 3 8.11
incl 39 40 1 18.7
and 89 106 17 8.22
incl 92 98 6 21.4
incl 96 98 2 53.6
(1) Reported intervals are not true width. At this time, there is insufficient data with respect to the shape of the minerali zed
system to calculate true orientations in space. They represent drill intersection widths from holes drilled at a dip of -45 degrees
and oriented to the north-northeast. The Bayan Khundii mineralization is interpreted to be moderately dipping (approximately
40 to 50 degrees to the southwest).
Striker-Midfield Connection
The Company completed four holes, at 40-metre centres, along the north-end of the Striker Zone to test
the down-dip extension of the Midfield Zone. Hole BKD-153 located in the centre of the high-grade
corridor, connecting Striker with Midfield, returned 150 metres of 1.5 g/t gold. BKD-153 is bordered by
previous holes on the Striker (BKD-82 extension) and Midfield side (BKD-101) with 174 metres of 0.7
g/t gold and 146 metres of 0.8 g/t gold, respectively. This area provides shallow, bulk, lower-grade gold
mineralized material between the very high-grade Striker and Midfield Zones. The four holes only
intersected 0 to 8.3 metres of the post-mineralization Cretaceous cover, followed by the mineralized
Devonian unit, and all four holes ended in a post-mineralization syenite intrusion at 140 to 185 metres
depth. See Table 3 below for results.
Table 3. Bayan Khundii drill highlights from area between Striker and Midfield Zones
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-149 82 86 4 1.09
and 94 173 79 0.55
incl 95 104 9 1.56
Drill Hole From (m) To (m) Interval (m) (1) Gold (g/t)
BKD-153 3 7 4 0.73
and 17 22 5 1.36
and 33 183 150 1.53
incl 37 38 1 31.4
incl 142 166 24 6.53
incl 152 162 10 13.8
incl 152 153 1 86.2
incl 161 162 1 33.2
BKD-156 12 21 9 0.66
and 40 54 14 0.62
and 60 71 11 1.03
and 165 171.5 6.5 1.36
BKD-157 0 5 5 1.0
and 16 24 8 0.28
and 59 64 5 0.36
(1) Reported intervals are not true width. At this time, there is insufficient data with respect to the shape of the minerali zed
system to calculate true orientations in space. They represent drill intersection widths from holes drilled at a dip of -45 degrees
and oriented to the north-northeast. The Bayan Khundii mineralization is interpreted to be moderately dipping (approximately
40 to 50 degrees to the southwest).
Reconnaissance Drilling
A series of six holes (BKD-125, -126, -136, -137, -143, -144) were drilled over a 400 by 200 metre area
east of the Midfield Zone, with holes spaced at approximately 80 to 150 metres (see attached plan map).
Several holes intersected weakly altered Devonian rocks with thicknesses up to 67 metres, locally with
anomalous gold, up to 0.9 g/t gold over a 2 metre interval in BKD-125 (200 metres northeast of BKD-118
which returned 10 metres of 12.8 g/t gold). These holes intersected the Cretaceous unconformity at depths
ranging from 62 to 168 metres (true vertical depth) with some intersecting syenite directly below the
unconformity. Drill results indicate this area represents a pre-Cretaceous syenite ridge with evidence
suggesting that altered Devonian units thicken further to the east, where strong geophysical resistivity
high coincident with magnetic low responses have been identified. These geophysical anomalies may
reflect altered and potentially mineralized Devonian tuffaceous rocks below cover, and will be targeted in
Q3 2017 drilling.
In the area south-southwest of Gold Hill, a series of six holes (BKD-130 to 135) were drilled over an area
approximately 200 by 200 metres at 80 to 100 metre spacing. These holes intersected moderately silica-
illite altered and weakly mineralized Devonian tuffaceous units with intensity of quartz veining increasing
towards the zone west of Striker with up to 0.9 g/t gold over 2 metres in BKD-134. All holes ended in
syenite at vertical depths ranging from 110 to 180 metres. Drilling is continuing west of this area where
the more intense alteration trends and recent drilling has established significant zones of gold
mineralization (BKD-105: 58 metres of 1.05 g/t gold).
Reconnaissance drilling testing conceptual targets supported by structural information, geophysics and
modeling will continue throughout Q3 2017.
2017 Bayan Khundii Drill Program Summary
The Q2-Q3 2017 exploration program at Bayan Khundii, which commenced in mid-April and will
include a projected 20,000 metres of diamond drilling was designed to expand areas of gold
mineralization surrounding the Gold Hill, Striker and Midfield zones and to identify new zones elsewhere
within the larger 2-kilometre by 1.8-kilometre Bayan Khundii project area. Thus far in 2017, the
Company has released results for 11,053 metres of drilling (63 holes). Once this Q2-Q3 program is
complete, the new or expanded zones will receive more detailed drilling, anticipated to take place in Q4
2017, to increase confidence in advance of an eventual resource estimate.
Background on Bayan Khundii Gold Project
In Q2-2015, Erdene conducted an initial exploration program on the southern portion of the Company’s
100%-owned Khundii exploration license in southwest Mongolia. An early rock-chip sampling program
revealed multiple very high-grade surface quartz veins that returned up to 4,380 g/t gold, leading to a
comprehensive exploration program that has included: geological mapping; soil geochemical survey s;
additional surface rock chip sampling; a ground magnetic survey; gradient array and dipole -dipole
induced polarization surveys; and the completion of 22,819 meters of drilling in 159 drill holes (as of
June 29, 2017). In addition to this work, a series of detailed follow-up studies have also been completed,
predominantly on drill core and minor surface outcrop, including: petrographic and mineralogical
analyses; a fluid inclusion study; SEM gold composition analysis; Short -Wave Infra-Red Analysis
(SWIR); structural analysis; and overall petrogenetic analysis. Drilling has revealed the presence of very
high gold grades, with up to 306 g/t gold over 1-metre intervals, within broad mineralized envelopes, up
to 131 metres of 3.9 g/t gold, including 80 metres of 6.0 g/t gold. Detailed studies indicate the
mineralized zones can be characterized as low-sulphidation, quartz-illite-adularia type mineralization that
was presumably formed in a back-arc extensional environment.
In Q1-2016, the Company concluded preliminary metallurgical test work at Bayan Khundii, indicating
that gravity concentration and cyanidation of the gravity tails yield very good overall gold recoveries for
both high-grade and low-grade composites, yielding 99% gold recovery from the high-grade composite
(24.9 g/t gold) and 92% gold recovery from the low -grade composite (0.7 g/t gold). Additional
metallurgical work is underway with completion anticipated in Q3.
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%.
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 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 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
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 four exploration licenses and a mining license in southwest Mongolia. In
addition to the Bayan Khundii and Altan Nar projects, other deposits and prospects within these licenses
include: Khuvyn Khar – an early-stage, copper-silver porphyry project with multiple drill targets and
significant copper intersections; Nomin Tal – a narrow, high grade copper-gold discovery; Zuun Mod – a
large molybdenum-copper porphyry deposit; and Altan Arrow – an early-stage gold-silver project. 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. For further
information on the Company, please visit www.erdene.com. Erdene has 145,550,586 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, 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 from 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