Erdene Resource Development Corp is about to start a trenching program at the Altan Nar Gold-Base Metals Project in southwest Mongolia in a bid to better assess potential of new targets and increase confidence in areas planned for resource definition drilling. A trenching program is under way at the Khuvyn Khar Copper Project.
Diamond drilling during the second quarter exploration program at Altan Nar provided the widest zones of high-grade mineralization to date for the two most advanced mineralized zones: Discovery Zone, with 19 metres @ 5.8 grams/tonne gold, 37 grams/tonne silver and 2.6% combined lead-zinc; and Union North, 2.1km northwest of Discovery Zone, with 12 metres @ 4.0 grams/tonne gold, 10 grams/tonne silver and 2.5% combined lead-zinc.
The exploration program also established lateral and vertical continuity of those zones, which remain open in all directions, and expanded the known size of the 5.6km-long Altan Nar trend.
The combination of detailed surface mapping, geochemical analysis of soil and rock samples, along with IP and magnetic geophysical surveys, has resulted in identification of 20 highly prospective targets within the Altan Nar licence, 18 of which are within the Altan Nar main trend. With the exception of the Discovery Zone and Union North these targets remain relatively untested, and thus have potential to significantly expand the areas of known gold and base metal mineralization with further trenching and drilling.
The company’s near-term objective is to establish initial, independently reported, near-surface, high-grade, open pitable resources at both the Discovery Zone and Union North in late 2014/early 2015.
Simultaneously, Erdene expects to complete additional evaluation of the remaining targets to assist in determining the highest priority areas and assessing potential additional near surface resources. Plans include trenching to evaluate new target areas, improve drill targeting and increase confidence for resource estimation at both the Discovery Zone and Union North. This program would be followed by resource definition drilling in the fourth quarter. During these programs, trenching and reconnaissance drilling to further evaluate and prioritize remaining targets will be completed.
Erdene continues to be active through the Teck Alliance in assessing the porphyry copper potential of the Khuvyn Khar project and assessing regional opportunities through the alliance’s area of interest, particularly now that the Mongolian licensing system is about to re-open.
During the second quarter, work on Khuvyn Khar included field evaluation of seven porphyry copper drill targets identified during the 2013 program and geophysical characterization studies of drill core to provide further definition and confidence in the modelling of potential mineralization.
This work has resulted in the identification of new, partially buried targets which are the subject of a large trenching program that started on August 18. The ongoing exploration program continues to confirm the potential for copper porphyry style mineralization within the Khuvyn Khar target area. www.erdene.com