Erdene to Acquire Majority Interest and Right to Purchase 100% of Exploration License Adjacent to its Bayan Khundii Gold Project
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene to Acquire Majority Interest and Right to Purchase 100% of
Exploration License Adjacent to its Bayan Khundii Gold Project
Halifax, Nova Scotia – August 22, 2017 – Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company") is pleased to announce it has entered into an agreement (the
“Agreement”) to acquire a 51% interest in the Ulaan exploration license, adjacent to the Company’s
high-grade Bayan Khundii gold project, with the option to acquire up to 100%.
“Our Company is pleased to be able to provide our shareholders with additional exposure to
prospective areas in the vicinity of our Bayan Khundii gold project,” said Peter Akerley, Erdene’s
President and CEO. “Over the long-term we believe this area will become a significant gold mining
district, and will continue to provide new precious and base metal opportunities. As such, we will
continue seeking opportunities to further expand our land position in this very prospective area.
The Ulaan license not only provides immediate discovery potential for both high-grade gold and
porphyry copper, but it also provides important strategic advantages as the district emerges into a
producing gold camp. Exploration programs for the Ulaan license are now being formulated, with
work to commence on this new property in Q4-2017.”
Ulaan License Description
The Ulaan exploration license (“Ulaan” or the “Property”) covers an area of approximately 1,780
hectares. It is located immediately west of the Company’s Khundii license, which hosts its 100%-
owned Bayan Khundii and Altan Arrow gold projects. The most prominent feature of Ulaan is a
very large and intense alteration zone measuring approximately 3 kilometres in diameter. This
alteration zone has had only minimal mapping and sampling and a recently completed geophysical
survey, but no history of sub-surface exploration, trenching or drilling. The license area is
underlain by a variety of intrusive and extrusive igneous rocks of variable composition, including
andesite, andesite porphyry, dacite, diorite and syenite. There are common intrusive dykes and
plugs cross-cutting the volcanic units, and quartz veins have been observed locally within the Ulaan
license.
The alteration zone is defined by QSP (quartz, sericite, pyrite) alteration where the sulphide
component has been extensively oxidized by supergene processes with pyrite in surface
outcrop/sub-crop now largely replaced by hematite. These features potentially support a model of a
porphyry system eroded to just below the base of a lithocap into the top of the QSP alteration ,
below which would be the quartz stockwork zone in a typic al porphyry system. Anomalous
concentrations of copper and molybdenum were encountered in rock chip and stream sediment
samples collected in the vicinity of the licence. A magnetic geophysical survey has outlined a
broad magnetic low in the central area of the Property, which corresponds to the main body of
alteration, presumably due to magnetite destruction to appreciable depths. An induced polarization
survey outlined a broad chargeability anomaly across the central area of the Property, extending to
approximately 200 to 300 metres depth. Narrow zones of vuggy, residual quartz that follow north-
northeast trending structures, similar to the orientation of the Company’s high-grade epithermal
gold zone at Bayan Khundii, are also present in the centre of the alteration zone.
The Company’s adjacent Bayan Khundii low-sulphidation gold system was overprinted on an
earlier high-temperature alteration zone with alteration mineralogy and texture consistent with high-
temperature, porphyry-style alteration. It is possible the silicic and advanced argillic alteration on
the Company’s Khundii license may be related to the Ulaan hydrothermal system. In addition to
the large alteration zone, the Property is also host to areas of Devonian tuffaceous volcanic rocks
with geophysical signatures similar to those observed within the Bayan Khundii gold
project. Exploration programs are being formulated with work to commence in Q4-2017.
Terms of Arrangement
Under the terms of the Agreement, Erdene will acquire 51% of the outstanding shares of Leader
Exploration LLC (“Leader”), a private Mongolian company that currently owns the Property, from
Erdenechuluun.Z and Erdenekhuyag.Z for US$750,000. The closing is anticipated to occur early in
September 2017. Provided Erdene spends a minimum of US$600,000 on work expenditures on the
Property over the next three years, it has the right to acquire the remaining 49% of the shares of
Leader from Erdenechuluun.Z or, at Erdene’s option, a portion of the Property, for the then fair
market value of the Property or the portion to be acquired. Erdene may extend the option beyond
three years by spending a minimum of US$100,000 per annum on work expenditures.
Erdene will be the manager of Leader, which will constitute a Shareholders Advisory Committee to
review and approve the annual exploration plans and budgets for the Property, until such time as
Erdene exercises its rights to acquire the remaining interest. The Shareholders Advisory Committee
is comprised of three nominees of Erdene and two nominees of Erdenechuluun.Z. If Erdene
defaults in its obligations to incur work expenditures, it forfeits its rights to the Property.
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. Exploration success has led to the discovery and definition of several 100%-
owned prospects and deposits including the Company’s flagship and newly discovered, high-grade,
near-surface Bayan Khundii gold project; the 5.6 kilometre long Altan Nar gold-polymetallic
mineralized trend that is host to 18 targets; the Altan Arrow gold-silver prospect; the Khuvyn Khar
copper-silver prospect; and the Zuun Mod molybdenum-copper deposit. 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, 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