ERDENE Resource Development Corp has acquired a 51% interest in the Ulaan exploration licence, which is immediately west of its Bayan Khundii Gold Project. Erdene has an option to acquire up to 100% of the 178 hectare project.
|Erdene’s copper-gold prospects are in southwest Mongolia.|
Ulaan hosts a very large, 3km diameter, intense alteration zone with characteristics thought to be related to a porphyry copper and epithermal gold system.
Although the property has no history of drilling or trenching, rock chip and stream sediment geochemical sampling has identified anomalous concentrations of gold, copper and molybdenum in the surrounding area, and recently completed geophysical surveys have produced a number of follow-up targets.
Erdene has acquired 51% of the outstanding shares of Leader Exploration LLC, a private Mongolian company that owns the property, from Erdenechuluun Z and Erdenekhuyag Z for US$750,000.
Provided Erdene spends a minimum of US$600,000 on work over the next three years, it has the right to acquire the remaining 49% of Leader from Erdenechuluun Z. Erdene may extend the option beyond three years by annually spending a minimum of US$100,000 on work expenditure.
The Canada-based company expects exploration of Ulaan to start before the end of the year while it continues drilling at its Bayan Khundii, Altan Nar and Altan Arrow projects.
Erdene has recently received results from metallurgical testing conducted by Blue Coast Research (BCR) on Bayan project. Results from two master composites indicate the gold is free milling and amenable to conventional processing techniques.
Tests of the first composite of 4.3 g/t gold showed recovery after 48 hours was 96% whereas the 96-hour gold recovery was 97% with a grind size of 80% passing 60 micron, 40% solids and 1.0 g/L NaCN.
The second composite of 4.7 g/t received full optimisation test work, including variation on grind size, residence time and sodium cyanide dosage as well as assessing the impact on overall recoveries when initial gravity recovery was applied. Gold recoveries, using a target grind size of 80% passing 60 micron, ranged from 91% to 93.4% after 48-hours with overall gold recovery of 95% after 96-hours.
Based on this success, BCR has recommended additional tests to better study the metallurgical characteristics and further optimise recoveries. It expects these will begin this quarter.