Drilling by Erdene Resource Development Corp has resulted in a significant increase in width and grade at the northern edge of Discovery Zone South (DZS). The drilling is part of a 15-hole fourth quarter 2014 exploration program at the Altan Nar gold-polymetallic project in southwest Mongolia.
The best result from results received to date is 51 metres of 2.5 grams/tonne gold equivalent, including 7 metres of 7.1 grams/tonne gold equivalent and 3 metres at greater than 7.0 grams/tonne gold equivalent.
There were gold values of up to 11.8 grams/tonne over 1 metre while there were also strong lead and silver values of up to 6.9% lead and 196 grams/tonne silver over 1 metre. There was strong zinc and silver mineralization in the southern-most hole with values up to 4.5% zinc and 334 grams/tonne silver over 1 metre.
Continuity of mineralization has been established over 200 metres at DZS and this is open in all directions. The DZS now joins Discovery Zone North (DZN) which extends a further 300 m to the north.
The drilling program was completed in December 2014 on the Altan Nar licence which is within the Tien Shan Gold Belt in southwest Mongolia. Fifteen drill holes, totalling 1855 metres, were completed in the three most advanced target areas - DZN, DZS and Union North (UN).
RungePincockMinarco LLC (RPM) is completing a mineral resource estimate. RPM's work program has included an initial review of all geotechnical data, provided input for the quarter four 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 delivery of all drill results from the current program with a NI 43-101 compliant mineral resource technical report delivered late in the first quarter.
The Government of Mongolia has received US$25 million toward the cost of a Mining Infrastructure Support Project and is applying a portion of the proceeds towards the investigation of groundwater in the region surrounding Erdene’s project areas. The project will include conducting investigations of groundwater near the 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.