Erdene Resource Development Corp will resume drilling in September at its Bayan Khundii and Altan Nar projects in southwest Mongolia. This follows extensive technical studies undertaken prior to the drilling season.

Erdene has been carrying out extensive studies on the styles and controls of gold mineralization at the Bayan Khundii gold and Altan Nar gold-polymetallic projects, as well as various studies and projects related to the anticipated development of the district.

Bayan Khundii (Rich Valley) and Altan Nar (Golden Sun) are near-surface, high-grade gold discoveries made by the company within the Tian Shan Gold Belt of southwest Mongolia. These projects are about 19km apart with gold mineralization traced over 6km at Altan Nar and 1.7km at Bayan Khundii.

The technical work program includes structural mapping studies, hyperspectral analysis of core and surface samples, evaluation by an expert in epithermal gold systems, geophysical interpretation, development of a 3D model, and through this combined evaluation, develop the ideal approach to drilling in regards to both exploration targeting and eventual resource categorization for both projects.

Part of this work has seen Erdene contract RungePincockMinarco to provide an independent review of all results to date with an objective of recommending optimal drill hole spacing in advance of future resource definition drilling at Bayan Khundii.

The company also contracted Okhi-Us LLC, an experienced Mongolian hydrogeological consulting firm, to complete a preliminary hydrogeologic study in the vicinity of the projects. Although a water resource was previously defined in association with a study of the company’s Zuun Mod molybdenum-copper deposit, 35km to the east of Bayan Khundii, this program is targeting basins more proximal to the current target areas. Initial surveying and water testing has identified two areas that will now be the subject of geophysical surveying and drilling to determine water volume, recharge and quality.

The results of the various technical studies will be evaluated by Erdene’s technical team with additional exploration and drilling programs designed accordingly.

Drilling is set to resume at Bayan Khundii in September and is expected to continue throughout the fourth quarter. This will include a drill program at Altan Nar. A review of the Altan Arrow high-grade discovery on the Khundii licence, 3.5km north of Bayan Khundii, is also planned.

Erdene also continues to evaluate copper-gold opportunities throughout the Edren Terrane of southwest Mongolia through its alliance with Teck Resources. Field evaluations are under way focused on geochemical surveys and satellite interpretation.

Erdene closed a non-brokered private placement with Teck in June 2016 to fund the regional exploration program. Since 2013, Teck has subscribed for $2.5 million in Erdene shares and owns 10.8% of Erdene’s issued and outstanding common shares. The Bayan Khundii and Altan Nar projects are excluded from the Teck alliance.

 



Resource Center Whitepapers, Videos, Case Studies