HALIFAX, NOVA SCOTIA--(Marketwired - Jan. 12, 2015) -
Editors Note: There are two maps associated with this press release.
Erdene Resource Development Corp. (News - Market indicators) ("Erdene" or "Company") is pleased to provide drilling results for the first four holes of the 15-hole fourth quarter 2014 exploration program at the Company's wholly-owned Altan Nar gold-polymetallic project in southwest Mongolia.
Highlights
- Significant increase in width and grade encountered at northern edge of Discovery Zone South ("DZS") in hole TND-69, including:
- 51 m of 2.5 g/t gold equivalent ("eq.")
- 7 m and 3 m zones of greater than 7 g/t gold eq.
- Gold values up to 11.8 g/t over 1 m
- Strong lead and silver values, up to 6.9% lead and 196 g/t silver over 1 m
- Strong zinc and silver mineralization in southern-most hole, TND-66, with values up to 4.5% zinc and 334 g/t silver over 1 m
- Continuity of mineralization established over 200 m at DZS and open in all directions, and now joining Discovery Zone North ("DZN") which extends a further 300 m to the north
- Results pending for DZN and Union North, anticipated by mid-Q1, 2015
- Runge Minarco completed site visit and has commenced resource estimation project
- Government of Mongolia announces World Bank funding for mining infrastructure support in Altan Nar/Zuun Mod project area
Table of Results - Discovery Zone South
*Au Eq. (gold equivalent) 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.
**Reported drill intervals do not represent true width.
Altan Nar Drill Program Q4 2014
The drill program was completed in December 2014 on Erdene's wholly owned Altan Nar gold-polymetallic license, located within the Tian Shan Gold Belt in southwest Mongolia. Fifteen drill holes, totaling 1,855 m, were completed in the three most advanced target areas; DZN, DZS, and Union North ("UN").
Since discovering Altan Nar in late 2011, Erdene has identified 18 mineralized gold, silver, lead and zinc target areas within a 5.6 by 1.5 km mineralized corridor. Two of the early discoveries, the Discovery Zone ("DZ") and UN, have been the subject of recent detailed work and were the focus of the Q4 2014 resource drilling program. These two intensely mineralized zones have undergone previous drilling and trenching programs that have confirmed the presence of a high-grade and near-surface mineralized system. The program, together with previous exploration drilling, focused on defining these zones to a depth amenable to open pit mining, and providing sufficient data to calculate a NI 43-101 compliant mineral resource estimate. Samples from the remaining holes completed as part of the resource delineation program are currently being analyzed at the SGS laboratory in Mongolia.
Included for reference are two maps showing the mineralized trend at Altan Nar and the location of new and previous drill holes in the DZ. To view a selection of mineralized drill core photos from the Altan Nar project please visit the Erdene website by clicking here.
Independent Resource Estimate - RungePincockMinarco
RungePincockMinarco LLC ("RPM") is completing the mineral resource estimate. RPM is the world's largest publicly listed independent group of mining technical experts, a global leader in the provision of advisory consulting, technology and professional development solutions to the mining industry with offices in 18 locations across 12 countries, including Mongolia. RPM's work program has included an initial review of all geotechnical data, provided input for the Q4 2014 drill program, and completing a site visit in November, 2014. It is anticipated the resource estimate work will be finalized in late February 2015 following the delivery of all drill results from the current program with a NI 43-101 compliant Mineral Resource Technical Report delivered in late Q1 2015.
World Bank Funding for Mining Infrastructure Support in Altan Nar/Zuun Mod Project Area
The Government of Mongolia has received US$25 million toward the cost of the Mining Infrastructure Support Project ("MINIS") and is applying a portion of the proceeds towards the investigation of groundwater in the region surrounding the Company's project areas. The project will include conducting investigations of groundwater near the Company's Zuun Mod molybdenum-copper deposit and throughout the southern portion of Bayanhongor province where both the Company's Altan Nar gold-polymetallic and Altan Arrow gold-silver projects are located. The goal is to identify groundwater resources that could provide reliable sources of water supply for sustainable development of mining activities. The project is expected to commence in March, 2015.
Qualified Person
J.C. (Chris) Cowan, P.Eng. (Ontario), VP Asia for Erdene, is a 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, blanks and duplicates.
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. For further information on the Company, please visit www.erdene.com. Erdene has 82,636,233 issued and outstanding common shares and, a fully diluted position of 93,410,140 common shares, after giving effect to the announced financings.
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 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
To view the maps associated with this press release, please visit the following links:
http://media3.marketwire.com/docs/Altan_Nar_Mineralized_Trend_Map1.jpg
http://media3.marketwire.com/docs/DZ_Plan_Map2.jpg
