A significant high-grade gold prospect, Bayan Khundii (Rich Valley), has been discovered on Erdene Resource Development Corp’s Khundii exploration licence in southwest Mongolia, 15km south of the company’s Altan Nar gold project.
In the June quarter of 2015 Erdene geologists conducted a follow-up exploration program on the southern portion of the Khundii licence leading to the discovery of Bayan Khundii, approximately 3.5km south of the company’s Altan Arrow gold prospect.
During the September quarter an exploration program was completed consisting of rock chip/grab sampling, trenching and geological mapping. Two separate mineralized zones were identified - the Main Zone and Northeast Zone.
The multiple high-grade rock chip samples assayed from 4 to 4380 grams/tonne gold from multiple mineralized zones over a 1.4km area with visible gold observed in numerous locations with no significant sulphide material present.
Trenching confirmed lower-grade gold mineralization of 0.1 to 1.0 grams/tonne in host rocks over significant widths of up to 30 metres hosting the significantly higher grade vein material. The trenching also identified four separate zones, 10 to 30 metres wide, averaging 2.3 to 2.9 grams/tonne gold over a 300 metre strike area and returned values up to 55 grams/tonne over 1 metre.
“We are very excited by our new discovery in this emerging gold district in southwest Mongolia. What sets this discovery apart from our other projects in the area is the bonanza gold grades, the multiple broad mineralized zones, and the free-gold, low sulphide nature of the mineralization, all of which enhance the potential economics of the project,” said Erdene’s president and CEO Peter Akerley.
“We are now developing plans for accelerated exploration of this exciting new discovery as part of our southwest Mongolia gold development program led by our Altan Nar gold-polymetallic project.”
Additional exploration of this high-grade gold discovery is in the planning stage and is expected to include two phases of diamond drilling in addition to metallurgical testing. The first phase of drilling is expected to be a 500 metre program to confirm trench results.