ERDENE Resource Development Corp began a drilling program at the Altan Nar gold-polymetallic project in the final quarter of 2014 with the primary objective of establishing an initial, independently verified, near-surface, open pit mineable resource at the Discovery Zone and Union North prospects.
Approximately 900 metres of drilling was planned for the Discovery Zone and 800 metres for Union North. The secondary objective is to increase confidence in the remaining 16 priority target areas within the Altan Nar trend with about 1300 metres of drilling.
The decision to drill was made following exploration programs earlier in the year which included trenching and drilling. Trenching at Union North returned multiple mineralized zones highlighted by a 12 metre wide zone of 3.7 grams/tonne gold, extending Union North 100 metres south.
At Junction, a previously untested target area 600 metres east of the Discovery Zone, multiple high-grade rock chip samples were returned including 11 grams/tonne gold, along with a base metal rich trench that included 4 metres of 3.7% zinc, 1.2% lead and 16 grams/tonne silver within a broad 26 metre zone of 0.8% zinc.
The early-stage Maggie target continues to demonstrate continuity of mineralization with step-out trenches along trend returning 8 metres of 2.0 grams/tonne gold equivalent to the northeast and 5 metres of 1.2 grams/tonne gold equivalent to the southwest.
Drilling in the second quarter of 2014 returned high-grade, near-surface intersections from both the Discovery Zone and Union North, the two most advanced target areas within the 5.5km trend at Altan Nar.
At Discovery Zone, multiple, thick gold-polymetallic intersections returned results ranging up to 17.7 grams/tonne gold over 5 metres, within 19 metres of 5.8 grams/tonne gold, 37 grams/tonne silver and 2.6% combined lead and zinc, within 60 metres of surface.
At Union North, 1.3km northwest of Discovery Zone, multiple, near-surface gold-polymetallic zones have been intersected, including 14 metres of 3.9 grams/tonne gold equivalent, and 40 metres south of that hole, 12 metres of 5.3 grams/tonne gold equivalent. Drilling within these two target areas has established both vertical and lateral continuity of mineralization.
Discovery Zone has been traced more than 450 metres and remains open with multiple parallel gold-polymetallic zones coming to surface. The Union North target area has been traced more than 300 metres, remains open in all directions and hosts multiple gold-polymetallic intersections.
To help fund the resource drilling Erdene issued, by way of a non-brokered private placement, up to 11.5 million units for gross proceeds of up to $1.61 million. The private placement was expected to close on or before October 31.
Altan Nar represents a new, very large, gold-base metal epithermal discovery in the Tien Shan Belt of southern Mongolia.