Erdene Resource Development Corp. is pleased to announce that a resource definition drilling program is now underway on its wholly owned Altan Nar gold-polymetallic project in the Tien Shan Gold Belt in southwest Mongolia.
The drill program will seek to establish a near-surface, National Instrument ("NI") 43-101 compliant resource estimate at the two most advanced target areas within the 5.6 km Altan Nar trend, now host to 18 target areas. RungePincockMinarco LLC has been selected to complete the Mineral Resource Estimate. The Company is also pleased to announce it raised a total of $778,239 from a November 13, 2014 closing of its non-brokered private placement and from the exercise of warrants.
"We believe the discovery at Altan Nar, with its high-grade zones, size potential and location, provides an opportunity with the flexibility to move rapidly towards a small-scale start-up and ultimately towards a very large gold, silver, zinc and lead development on the border with China", said Peter Akerley, President and CEO of Erdene. "The current drilling and independent resource estimate is serving both of these routes, initially by establishing a high confidence open pitable resource which we can build development plans around, but also being demonstrative of the greater potential as it represents only a small portion of the project area. By taking this route, our Company is best positioned to react to the volatile market conditions continuing to be experienced in our sector. I would like to thank our new and existing shareholders who have contributed over $2 million during the past seven months for recognizing the potential of Altan Nar and trusting management to create value. We are looking forward to a steady flow of drill results throughout the winter months as we advance this project towards its maiden resource estimate."
Altan Nar Resource Drilling Program
Erdene's resource drilling program is targeting two heavily mineralized zones that, based on previous drilling and trenching results, suggest the presence of a high-grade and near-surface mineralized system. Approximately 1,700 m of drilling is expected to be completed by mid-December 2014, at Discovery Zone and Union North, the two most advanced target areas within the 5.6 by 1.5 km trend at Altan Nar, now host to 18 target areas. The drilling will be focused on extending the high-grade, near-surface mineralized zones, and to provide sufficient data to calculate a NI 43-101 compliant mineral resource at both target areas that is amenable to open pit mining.
Drilling completed in the second quarter of 2014 returned high-grade, near-surface intersections from both of these areas. At the Discovery Zone, multiple, wide, gold-polymetallic intersections returned results ranging up to 17.7 g/t gold over 5 m, within 19 m of 5.8 g/t gold, 37 g/t silver and 2.6% combined lead and zinc, within 60 m of surface. At Union North, 1.3 km northwest of the Discovery Zone, multiple, near-surface gold-polymetallic zones have been intersected, including 14 m of 3.0 g/t gold, 7.1 g/t silver, and 1.7% combined lead and zinc, and 40 m below that hole, 12 m of 4.0 g/t gold, 10.1 g/t silver, and 2.5% combined lead and zinc. Drilling within these two target areas has established both vertical and lateral continuity of mineralization. Both mineralized zones outcrop at surface and have been intersected by trenching.