Erdene Commences Drilling at Altan Nar Epithermal Gold Project Southwest Mongolia
HALIFAX, NOVA SCOTIA -- (Marketwire) -- 11/10/11 -- Erdene Resource Development Corp. ('Erdene') (TSX: ERD), is pleased to announce commencement of a 3,000 metre drill program at the Company's 100% owned Altan Nar (Golden Sun) property in southwest Mongolia. This program will test multiple targets over 1 kilometre of strike length extending north and south from the original discovery which returned significant, near surface epithermal-style gold, silver and base metal mineralization.
The program will be concentrated on the central portion of a target area measuring 3 kilometres by 2 kilometres and containing multiple prospects defined by geochemistry and geophysics. These prospects are also associated with a number of gold-bearing epithermal-style quartz vein/breccia zones identified on surface and in the initial four-hole drilling program. The initial drilling, reported October 12, 2011, tested a 75 metre wide, low sulfidation epithermal system over a strike length of 100 metres with geophysical anomalies suggesting continuity and local intensification at depth. The initial hole (TND-09) intersected mineralization from 20 to 75 metres (down-hole depth) averaging 1.02 g/t gold and 12 g/t silver over the 55 metre interval and included 23 metres averaging 2.07 g/t gold and 23 g/t silver. See table below which includes the results of the initial four-hole program.
Altan Nar Epithermal Gold Prospect - Exploration Results and Planned Drilling
Following the initial drilling success, the company completed additional in-fill soil sampling, regional and detailed magnetic surveys, an extension of the existing IP gradient array and additional dipole-dipole IP lines. The expanded geophysical program has clearly defined chargeability and resistivity anomalies coincident with anomalous gold and base metal soil anomalies in the central portion of the target area. These geophysical anomalies include extensions from the original discovery as well as parallel zones to the north and south.
A 3,000 metre diamond drill program, consisting of approximately 18 holes, has commenced and is expected to be completed before the end of December 2011. Holes will be drilled to depths of between 100 and 200 metres targeting coincident gold and base metal geochemical and high chargeability anomalies hosted within a distinct magnetic low feature over an area of approximately 1 kilometre by 800 metres. This area contains a number of gold bearing epithermal quartz veins at surface.
The mineralized zone intersected in the initial four-hole drilling program is characterized by epithermal quartz breccia and comb-quartz veining with associated phyllic, propylitic and minor potassic alteration of host andesite and andesitic tuff. Gold mineralization was mostly restricted to zones of quartz breccia and comb-quartz and chalcedony veins, interpreted to be oriented from vertical to steeply northwest-dipping.
Initial Drill results reported October 12, 2011
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Drilling Highlights
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Hole # Total
Depth (m) Depth (m) Width (m) Au (g/t) Ag (g/t) Pb (%) Zn (%)
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From To
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TND-09 111 20 75 55 1.02 12 0.26 0.47
incl. 50 73 23 2.07 23 0.26 0.59
incl. 55 63 8 3.90 17 0.15 0.42
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TND-10 75 0 40 40 0.32 3 0.40 0.23
incl. 15 19 4 0.96 12 2.17 0.37
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TND-11 120 48 66 18 0.56 6 0.26 0.50
incl. 48 51 3 1.21 3 0.65 1.04
incl. 62 64 2 1.24 17 0.39 0.60
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TND-12 100 28 76 48 0.51 9 0.24 0.84
incl. 36 46.5 10.5 1.20 16 0.17 0.41
incl. 50 71 21 0.21 4 0.39 1.50
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Note: All drill holes were orientated at 45 degrees and intersected zones interpreted to be steeply-dipping to vertical. Additional information is required to determine true widths.
To view a detailed presentation of the Altan Nar polymetallic-gold epithermal prospect, please visit the Featured Items section of our website at www.erdene.com.
Qualified Person
J.C. (Chris) Cowan, P.Eng. (Ontario) 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 diversified resource company with multiple projects in Mongolia, Canada, and the USA, at various stages of development, from exploration to production; all projects are focused on high-growth commodities. In Mongolia, Erdene's principals have over 14 years of experience in the country's resource sector. A dedicated technical and management team have assembled a strong portfolio of molybdenum-copper, copper-gold, and coal projects throughout the country. These projects, and our in-country experience, provide the Company with a unique opportunity to participate in this period of unprecedented economic growth in Mongolia. This growth is fuelled by the discovery and development of a number of World-class mineral projects that are transforming the country into one of Asia's natural resource capitals.
Erdene has a current working capital position of $3 million, including that of its controlled subsidiary Advanced Primary Minerals Corp., with 90,323,377 common shares issued and outstanding and a fully diluted position of 97,931,377 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 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 underapplicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
Contacts:
Erdene Resource Development Corp.
Peter C. Akerley, President and CEO
(902) 423-6419
info@erdene.com
www.erdene.com
Erdene Resource Development Corp.
Ken W. MacDonald, Vice President Business Strategy and CFO
(902) 423-6419
info@erdene.com
www.erdene.com
Renmark Financial Communications Inc.
Barbara Komorowski: bkomorowski@renmarkfinancial.com
(514) 939-3989 or (416) 644-2020
www.renmarkfinancial.com
