HALIFAX, NOVA SCOTIA--(Marketwire - March 4, 2011) - Erdene Resource Development Corp. ("Erdene") (News - Market indicators) is pleased to announce final analytical results for its new porphyry copper discovery on the wholly owned Zuun Mod project in south-western Mongolia.
"Our encouragement from the initial copper discovery reported February 1, 2011 strengthened considerably with confirmation that the previously reported 34 metre intersection of 1.3% copper also contains 9.24 g/t of silver", said Peter Akerley, President and CEO. "We believe the Zuun Mod complex has tremendous additional mineral potential and we eagerly await the results of an expanded drill program that will commence in early April."
As part of a recent exploratory drilling program at Zuun Mod, three vertical holes were completed to test geophysical and geochemical targets outside the area of the main molybdenum-copper deposit. Drill hole ZMD-121, located approximately 2.2 kilometres northwest of the main molybdenum deposit, intersected a monzonite hosted breccia intruding a package of dacite, rhyolite and andesite porphyry. The zone returned 34 metres of 1.3% copper and 9.24 g/t silver from 308 to 342 metres. This mineralized zone included a 10 metre section of 3.1% copper and 22.2 g/t silver (maximum value for 2-metre samples was 4.1% copper and 27 g/t silver). Details of the mineralized zone follow:
A drill rig remains on site and a follow-up program is being designed for the resumption of drilling of a significant geophysical target in the vicinity of the discovery hole in early April. Maps showing the location of drill hole ZMD-121 and photos of mineralized drill core are available on Erdene's website at www.erdene.com.
Khuvyn Khar Copper Prospect Drilling (at Zuun Mod)
Hole ZMD-121, drilled in the north-central portion of the Zuun Mod licence, a target area referred to as Khuvyn Khar (meaning Black Cirque), intersected a new copper/silver zone at 308 metres depth coincident with both a dipole-dipole chargeability high and an RTP (reduced to pole) magnetic low geophysical signature. This geophysical anomaly is interpreted to reflect magnetite destructive alteration and metallic mineralization associated with a buried granodiorite-monzonite intrusive. The target area is also defined by surface geochemical molybdenum and copper anomalies. The remainder of the hole returned elevated copper values averaging 781 ppm Cu from 5 metres to 308 metres (above the higher-grade zone) and 542 ppm Cu from 342 metres to the end of hole at 378 metres (below the higher-grade zone). The Khuvyn Khar prospect remains untested below 378 metres depth (ZMD-121) and is open to the north, south and west. To the east, two previously drilled holes, ZMD-08 (450 metres to the east-northeast) and KKMD-13 (800 metres to the southeast) returned 0.10% Cu over 26 metres and 152 metres of 0.16% Cu including 32 metres of 0.22% Cu, respectively. ZMD-121 intersected the northern margin of a large, buried chargeability anomaly. Although surface exposure is limited, a silicification zone has been mapped locally above this geophysical anomaly.
Erdene controls the Zuun Mod deposit through a single exploration license totaling 30,650 hectares, located in Bayankhongor Province in Mongolia, approximately 950 kilometers southwest of Ulaanbaatar and 215 kilometers from railhead on the Mongolia-China border at Ceke. The railhead is located 20 kilometers south of the Nariin Sukhait and Ovoot Tolgoi coal mines.
Qualified Person
J.C. (Chris) Cowan, P.Eng. (Ontario) 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 diversified resource company with multiple projects at various stages of development from exploration to production; all projects are focused on high-growth commodities. These projects include a 25% interest in Xstrata's eastern Canadian Donkin Coking Coal Project, a 100% interest in the large tonnage Zuun Mod Molybdenum and Copper project in Mongolia, a royalty interest in a developing construction material project in the United States as well as a 60% equity interest in TSX-V listed Advanced Primary Minerals. Erdene has a current working capital position of approximately $7.4 million, including that of its controlled subsidiary Advanced Primary Minerals Corp., with 90,118,377 common shares issued and outstanding and a fully diluted position of 93,731,377 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 subject to change after that date.
