Erdene Resource Development has received and filed on Sedar an NI 43-101 compliant technical report for the Zuun Mod molybdenum-copper project. The report includes an updated resource estimate following 4331 metres of additional drilling completed in late 2010.
The updated Zuun Mod molybdenum-copper resource estimate has a measured and indicated resource of 218 million tonnes at an average grade of 0.057% molybdenum and 0.069% copper at a cut-off grade of 0.04% molybdenum. This equates to 273.5 million pounds of contained moly metal and 330.7 million pounds of contained copper metal.
In addition, there is a 168 million tonne inferred resource at an average grade of 0.052% moly and 0.065% copper, equating to a further 191.8 million pounds of contained moly metal and 240.5 million pounds of contained copper metal.
Erdene has also recently received an NI 43-101 compliant technical report for the Donkin Coal Project in eastern Canada. Donkin is a joint venture between Xstrata Coal Donkin (75%) and Erdene (25%).
The purpose of the report is to present the results of the pre-feasibility study (PFS) on the Donkin Export Coking Coal Project prepared by Xstrata and the reserves defined by the PFS. The report assesses the viability of a multiple continuous miner underground operation, annually producing about 3.5 million tonnes run of mine coal that would be subsequently washed to annually provide 2.75 million tonnes of product coal suitable for the international export coking and thermal coal markets and domestic thermal coal markets.
The report confirms the technical and economic viability of the project and supports advancing to the next phase.