HALIFAX, NOVA SCOTIA--(Marketwired - Oct. 7, 2013) - Erdene Resource Development Corp. (News - Market indicators) ("Erdene" or "Company"), is pleased to announce that it has commenced an exploration program at its wholly owned Altan Nar gold-polymetallic project in southwest Mongolia to further define the near-surface mineralization identified to date and prioritize new areas for the next phase of resource drilling. The Company is also pleased to report that on October 3rd the Mongolian Parliament approved a new Investment Law that will provide much greater stability in the taxation and legal regulatory system of Mongolia.
"The discoveries by our Company over the past two years in the Altan Nar area have established a new epithermal gold district in southwestern Mongolia. The objective now is to establish initial targets for open pit development at Altan Nar while continuing to explore this large area at surface and at depth where high-grade, gold-polymetallic shoots have been identified," said Peter Akerley, President and CEO. "The passing of the new Investment Law brings welcomed stability to the regulatory framework of Mongolia and confidence to more rapidly develop this exciting new project."
Altan Nar Gold - Polymetallic Project
The Altan Nar prospect is an extensively mineralized epithermal system consisting of steeply-dipping, gold-polymetallic breccias and veins across a 5.5 by 1.5 kilometre mineralized corridor. To date, field mapping, geochemical and geophysical surveys, 8,207 metres of drilling, metallurgical studies, and the evaluation of conceptual early development scenarios have been completed since discovery by Erdene in late 2011. The areas tested by drilling represent a small portion of the total target areas as defined by mapping, geochemical and geophysical surveys. The objective of this exploration program is to further define the near-surface mineralization, an important step in establishing the initial resource, and prioritizing new areas for the next phase of resource drilling. These targets, as outlined in the Company's corporate presentation, will be the focus of approximately 1,200 metres of trenching and stripping. In addition, mapping of alteration zone mineralogy in exposed areas and drill core will be completed using the TerraSpec Mineral Analyzer.
The exploration data generated by this program will also be used to develop conceptual plans for initial open pit development. The program will test a minimum of ten targets on the Altan Nar licence. The highest priority targets currently include the Discovery Zone ("DZ") North prospect where multiple drill holes have intersected a zone of mineralization that extends to surface and the newest drilling discovery, Union North, which returned multiple gold mineralized zones within 50 metres of surface, including 9 metres averaging 4.4 g/t gold. Union North is located over one kilometre northwest of DZ North.
Area |
Average
True Width (m) |
Au g/t |
Ag g/t |
Pb % |
Zn % |
| DZ North |
18 |
1.9 |
12 |
0.7 |
0.6 |
| Union North (1km NNW from DZ) |
14 |
3.1 |
9 |
0.6 |
0.6 |
| DZ South (200m SW from DZ North) |
14 |
1.4 |
17 |
0.4 |
0.5 |
Each of these targets has potential for development of high-grade, gold-polymetallic zones at depth. Drilling has been limited to a maximum vertical depth of 250 metres with multiple, often closely spaced, parallel, high-grade gold-polymetallic veins intersected:
Area |
Hole # |
|
From
(m) |
To (m) |
Width
(m) |
Au
(g/t) |
|
Ag
(g/t) |
Pb % |
Zn % |
| DZ North |
TND-37 |
|
144 |
145 |
1 |
11.7 |
|
102 |
4.5 |
5.3 |
| DZ North |
TND-38 |
|
121 |
124 |
3 |
13.1 |
|
67 |
1.0 |
0.7 |
| DZ North |
TND-40 |
|
73 |
75 |
2 |
9.9 |
|
35 |
1.6 |
1.5 |
| DZ North |
TND-50 |
|
111 |
112 |
1 |
8.1 |
|
38 |
2.7 |
1.0 |
| DZ North |
TND-58 |
|
266 |
267 |
1 |
12.6 |
|
19 |
1.6 |
1.4 |
| DZ South |
TND-19 |
|
133 |
134 |
1 |
7.6 |
|
250 |
0.2 |
0.5 |
| DZ South |
TND-19 |
|
144 |
147 |
3 |
16.1 |
|
12 |
0.2 |
0.9 |
| DZ South |
TND-19 |
|
150 |
151 |
1 |
14.3 |
|
22 |
0.2 |
1.2 |
| Union North |
TND-46 |
|
58 |
59 |
1 |
8.5 |
|
17 |
1.9 |
0.6 |
| Union North |
TND-46 |
|
62 |
63 |
1 |
15.3 |
|
23 |
1.2 |
1.0 |
| Union South |
TND-29 |
|
120 |
121 |
1 |
10.9 |
|
10 |
0.8 |
2.5 |
New Mongolia Investment Law
On October 3rd, 2013, 83% of Mongolia's Parliament members voted to approve a new law on investment ("Investment Law"). The Investment Law removes restrictions on approval of investments by foreign private investors in key sectors of the economy including mining, and includes stabilisation of tax periods based on the investment amount and the location within the Country, setting tax rates for between five to 15 years.
Deferred Share Units Granted
On September 30th, 2013, the Company granted a total of 723,249 Deferred Share Units ("DSU") at $0.09 per share to certain officers, directors and employees of the Company. As previously announced, in order to reduce cash outflows and eliminate certain future commitments, the Company is utilizing the DSU program to more closely align the Company's compensation plan with shareholder expectations.
Qualified Person
J.C. (Chris) Cowan, P.Eng. (Ontario), VP Asia for Erdene, is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release. All samples have been assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared standards, blanks and duplicates.
About Erdene
Erdene Resource Development Corp. is a Canada-based junior resource company focused on the acquisition, exploration, and development of base and precious metals in Mongolia. For further information on the Company, please visit www.erdene.com. Erdene has 58,785,299 issued and outstanding common shares and, a fully diluted position of 67,108,965 common shares.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
