Mr. Peter Akerley reports
ERDENE STEPS OUT 280M FROM MIDFIELD WITH MULTIPLE MINERALIZED HOLES; 60M OF 1.5 G/T GOLD; BAYAN KHUNDII STRIKE NOW EXCEEDING 1.3KM; STRENGTHENS DOWN-DIP OF MIDFIELD WITH 24M OF 6.5 G/T GOLD
Erdene Resource Development Corp. has released results from the company's 2017 drill program at its 100-per-cent-owned Bayan Khundii gold project in southwest Mongolia.
Highlights:
-
Stepout drilling north of Midfield zone extends gold mineralization a further 280 metres toward the Northeast zone in a series of 80-metre-spaced holes, effectively doubling the length of the known mineralized trend under cover:
- 84 metres of 1.1 grams per tonne gold, 130 metres northeast of Midfield (hole BKD-154);
- 18 metres of three grams per tonne gold within 60 metres of 1.5 grams per tonne gold, 200 metres northeast of Midfield (hole BKD-140);
- 32 metres of 1.6 grams per tonne gold, 280 metres northeast of Midfield (hole BKD-138);
-
Drilling confirms continuity of mineralization at Midfield zone and returns 17 metres of 8.2 grams per tonne gold within 131 metres of 1.8 grams per tonne gold (hole BKD-150);
-
Drilling confirms strong mineralization between Striker and Midfield zones and returns 24 metres of 6.5 grams per tonne gold, within 150 metres of 1.5 grams per tonne gold (hole BKD-153);
- Bayan Khundii drill results to continue throughout the third quarter of 2017.
"Drilling under cover, north and northeast of the Midfield zone has successfully extended gold mineralization in a series of holes trending towards the Northeast zone, while follow-up drilling between Striker and Midfield continues to demonstrate downdip continuity of Midfield mineralization," said Peter Akerley, Erdene's president and chief executive officer. "The 2017 drill program has now established continuity of significant gold mineralization over a 1.3-kilometre-long trend that is locally up to 450 metres wide and remains open. We are roughly halfway through our initial 2017 drill program with results continuing throughout Q3 2017."
Extension of Midfield zone
A series of 12 40- to 80-metre-spaced stepout holes were completed in the area north and northeast of the Midfield zone, with the majority of these holes intersecting the gold-bearing host-silicified and illite-altered Devonian volcanic units (see the attached table). The two holes reported to contain visible gold in the company's June 8 news release both returned significant intersections: BKD-140 returned 35 metres of 2.1 grams per tonne gold, and BKD-154 returned 84.4 metres of 1.1 grams per tonne gold. The most northerly hole, BKD-138, returned 32 metres of 1.6 grams per tonne gold. Gold-mineralized volcanics have now been traced from the surface-exposed Striker zone to the north under the younger Cretaceous cover for 500 metres (BKD-138) and to within 200 metres of the Northeast zone where BKD-122 (see the June 8, 2017, release) returned the highest and widest grades reported in this area to date.
These new holes, combined with the drill holes reported on June 8, BKD-110 (108.3 metres of 2.8 grams per tonne gold) and BKD-111 (55 metres of 2.9 grams per tonne gold, including 25 metres of 5.3 grams per tonne gold), located north of Midfield, now effectively double the length of the known gold-mineralized trend under cover and further support the continuous extension of the north-northeast-trending, high-grade corridor for over one kilometre from Gold Hill through Striker, Midfield and now toward the Northeast zone. The company plans to further define this new area with additional closer-spaced drilling before the end of the third quarter of 2017.
BAYAN KHUNDII DRILL HIGHLIGHTS NORTHEAST EXTENSION OF MIDFIELD ZONE
From To Interval Gold
Drill hole (m) (m) (m) (1) (g/t)
BKD-138 132.3 220 87.7 0.79
Including 134 166 32 1.64
Including 136 137 1 33.1
BKD-139 50 62 12 0.36
BKD-140 67.3 127 59.7 1.47
Including 85 120 35 2.14
Including 100 118 18 3.01
Including 102 103 1 13.6
BKD-141 157 162 5 0.40
And 216 218 2 1.35
BKD-142 142.5 158.8 16.3 0.30
BKD-147 153.5 197.8 44.3 0.81
Including 181 195 14 1.53
BKD-151 107.8 188 80.2 0.30
BKD-154 (2) 83.8 168.2 84.4 1.14
Including 83.8 104 20.2 1.94
Including 99 100 1 11.1
Including 120 132 12 2.26
Including 154 162 8 2.52
(1) Reported intervals are not true width. At this time, there are insufficient
data with respect to the shape of the mineralized system to calculate true
orientations in space. They represent drill intersection widths from holes drilled
at a dip of negative 55 to negative 65 degrees and oriented to the north-northeast.
The Bayan Khundii mineralization is interpreted to be moderately dipping
(approximately 40 to 50 degrees to the southwest).
(2) BKD-154 contains nine contiguous metres of less than 100 parts per billion gold.
A series of holes to the northwest of the mineralized Midfield zone, BKD-145, -146, -152, -158 and -159, all intersected strongly altered Devonian volcanic units; however, these holes did not return significant gold mineralization. Another hole, BKD-155, located northeast of Midfield, intersected syenite directly below the Cretaceous unconformity.
Follow-up drilling at Midfield zone
The company completed a single follow-up hole within the south-central portion of the Midfield zone (BKD-150) to test an area of projected shallow cover and to increase confidence in the main mineralized Midfield zone. The hole intersected the mineralized Devonian unit at a 21.5-metre depth (16-metre vertical depth), returning 131 metres of 1.8 grams per tonne gold to a 153-metre depth (111-metre vertical depth), where it ended in a postmineralization syenite porphyry. The 131-metre interval included 15 metres of 2.1 grams per tonne gold at a 26-metre depth (19-metre vertical depth) and 17 metres of 8.2 grams per tonne gold at a 89-metre depth (65-metre vertical depth). See the attached table.
BAYAN KHUNDII DRILL HIGHLIGHTS FROM MIDFIELD ZONE
From To Interval Gold
Drill hole (m) (m) (m) (1) (g/t)
BKD-150 21.5 152.9 131.4 1.77
Including 26 41 15 2.10
Including 38 41 3 8.11
Including 39 40 1 18.7
And 89 106 17 8.22
Including 92 98 6 21.4
Including 96 98 2 53.6
(1) Reported intervals are not true width. At this time, there are insufficient
data with respect to the shape of the mineralized system to calculate true
orientations in space. They represent drill intersection widths from holes drilled
at a dip of negative 45 degrees and oriented to the north-northeast. The Bayan
Khundii mineralization is interpreted to be moderately dipping (approximately 40 to
50 degrees to the southwest).
Striker-Midfield connection
The company completed four holes, at 40-metre centres, along the north end of the Striker zone to test the downdip extension of the Midfield zone. Hole BKD-153, located in the centre of the high-grade corridor, connecting Striker with Midfield, returned 150 metres of 1.5 grams per tonne gold. BKD-153 is bordered by previous holes on the Striker (BKD-82 extension) and Midfield side (BKD-101), with 174 metres of 0.7 gram per tonne gold and 146 metres of 0.8 gram per tonne gold, respectively. This area provides shallow, bulk, lower-grade gold-mineralized material between the very high-grade Striker and Midfield zones. The four holes only intersected zero to 8.3 metres of the postmineralization Cretaceous cover, followed by the mineralized Devonian unit, and all four holes ended in a postmineralization syenite intrusion at a 140- to 185-metre depth. See the attached table for results.
BAYAN KHUNDII DRILL HIGHLIGHTS FROM AREA BETWEEN STRIKER AND MIDFIELD ZONES
From To Interval Gold
Drill hole (m) (m) (m) (1) (g/t)
BKD-149 82 86 4 1.09
And 94 173 79 0.55
Including 95 104 9 1.56
BKD-153 3 7 4 0.73
And 17 22 5 1.36
And 33 183 150 1.53
Including 37 38 1 31.4
Including 142 166 24 6.53
Including 152 162 10 13.8
Including 152 153 1 86.2
Including 161 162 1 33.2
BKD-156 12 21 9 0.66
And 40 54 14 0.62
And 60 71 11 1.03
and 165 171.5 6.5 1.36
BKD-157 0 5 5 1.0
And 16 24 8 0.28
And 59 64 5 0.36
(1) Reported intervals are not true width. At this time, there are insufficient
data with respect to the shape of the mineralized system to calculate true
orientations in space. They represent drill intersection widths from holes drilled
at a dip of negative 45 degrees and oriented to the north-northeast. The Bayan
Khundii mineralization is interpreted to be moderately dipping (approximately 40 to
50 degrees to the southwest).
Reconnaissance drilling
A series of six holes (BKD-125, -126, -136, -137, -143 and -144) were drilled over a 400-by-200-metre area east of the Midfield zone, with holes spaced at approximately 80 to 150 metres. Several holes intersected weakly altered Devonian rocks with thicknesses up to 67 metres, locally with anomalous gold, up to 0.9 gram per tonne gold over a two-metre interval in BKD-125 (200 metres northeast of BKD-118, which returned 10 metres of 12.8 grams per tonne gold). These holes intersected the Cretaceous unconformity at depths ranging from 62 to 168 metres (true vertical depth), with some intersecting syenite directly below the unconformity. Drill results indicate this area represents a pre-Cretaceous syenite ridge, with evidence suggesting that altered Devonian units thicken farther to the east, where strong geophysical resistivity high coincident with magnetic low responses have been identified. These geophysical anomalies may reflect altered and potentially mineralized Devonian tuffaceous rocks below cover and will be targeted in third quarter 2017 drilling.
In the area south-southwest of Gold Hill, a series of six holes (BKD-130 to 135) were drilled over an area approximately 200 by 200 metres at 80- to 100-metre spacing. These holes intersected moderately silica-illite-altered and weakly mineralized Devonian tuffaceous units with intensity of quartz veining increasing toward the zone west of Striker, with up to 0.9 gram per tonne gold over two metres in BKD-134. All holes ended in syenite at vertical depths ranging from 110 to 180 metres. Drilling is continuing west of this area where the more intense alteration trends and recent drilling has established significant zones of gold mineralization (BKD-105 -- 58 metres of 1.05 grams per tonne gold).
Reconnaissance drilling testing conceptual targets supported by structural information, geophysics and modelling will continue throughout the third quarter of 2017.
2017 Bayan Khundii drill program summary
The second quarter to third quarter 2017 exploration program at Bayan Khundii, which commenced in mid-April and will include a projected 20,000 metres of diamond drilling, was designed to expand areas of gold mineralization surrounding the Gold Hill, Striker and Midfield zones and to identify new zones elsewhere within the larger two-kilometre-by-1.8-kilometre Bayan Khundii project area. Thus far in 2017, the company has released results for 11,053 metres of drilling (63 holes). Once this second quarter to third quarter program is complete, the new or expanded zones will receive more detailed drilling, anticipated to take place in the fourth quarter of 2017, to increase confidence in advance of an eventual resource estimate.
Background on Bayan Khundii gold project
In the second quarter of 2015, Erdene conducted an initial exploration program on the southern portion of the company's 100-per-cent-owned Khundii exploration licence in southwest Mongolia. An early rock chip sampling program revealed multiple very high-grade surface quartz veins that returned up to 4,380 grams per tonne gold, leading to a comprehensive exploration program that has included: geological mapping, soil geochemical surveys, additional surface rock chip sampling, a ground magnetic survey, gradient array and dipole-dipole induced polarization surveys, and the completion of 22,819 metres of drilling in 159 drill holes (as of June 29, 2017). In addition to this work, a series of detailed follow-up studies have also been completed, predominantly on drill core and minor surface outcrop, including: petrographic and mineralogical analyses, a fluid inclusion study, scanning electron microscope gold composition analysis, short-wave infrared analysis, structural analysis, and overall petrogenetic analysis. Drilling has revealed the presence of very high gold grades, with up to 306 grams per tonne gold over one-metre intervals, within broad mineralized envelopes, up to 131 metres of 3.9 grams per tonne gold, including 80 metres of six grams per tonne gold. Detailed studies indicate the mineralized zones can be characterized as low-sulphidation, quartz-illite-adularia-type mineralization that was presumably formed in a back-arc extensional environment.
In the first quarter of 2016, the company concluded preliminary metallurgical testwork at Bayan Khundii, indicating that gravity concentration and cyanidation of the gravity tails yield very good overall gold recoveries for both high-grade and low-grade composites, yielding 99-per-cent gold recovery from the high-grade composite (24.9 grams per tonne gold) and 92-per-cent gold recovery from the low-grade composite (0.7 gram per tonne gold). Additional metallurgical work is under way, with completion anticipated in the third quarter.
The Bayan Khundii licence has a 2-per-cent net smelter return (NSR) royalty in favour of Sandstorm Gold Ltd., with a buyback option to reduce the NSR royalty to 1 per cent.
Qualified person and sample protocol
Michael MacDonald, PGeo (Nova Scotia), vice-president of exploration for Erdene, is the 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 Ulan Bator, Mongolia. In addition to internal checks by SGS Laboratory, the company incorporates a quality assurance/quality control sample protocol, utilizing prepared standards and blanks.
Erdene's sampling protocol for drill core consisted of collection of samples over one-metre or two-metre intervals (depending on the lithology and style of mineralization) over the entire length of the drill hole, excluding minor postmineral lithologies and unmineralized granitoids. Sample intervals were based on metreage, not geological controls or mineralization. All drill core was cut in half with a diamond saw, with half of the core placed in sample bags and the remaining half securely retained in core boxes at Erdene's Bayan Khundii exploration camp. All samples were organized into batches of 30 samples, including a commercially prepared standard, blank and either a field duplicate, consisting of two one-quarter core intervals, or a laboratory duplicate. Sample batches were periodically shipped directly to SGS in Ulan Bator through Erdene's logistical contractor, Monrud Co. Ltd.
About Erdene
Resource Development Corp.
Erdene Resource Development is a Canadian-based resource company focused on the acquisition, exploration and development of base and precious metals in underexplored and highly prospective Mongolia. The company has four exploration licences and a mining licence in southwest Mongolia. In addition to the Bayan Khundii and Altan Nar projects, other deposits and prospects within these licences include: Khuvyn Khar -- an early-stage, copper-silver porphyry project with multiple drill targets and significant copper intersections; Nomin Tal -- a narrow, high-grade copper-gold discovery; Zuun Mod -- a large molybdenum-copper porphyry deposit; and Altan Arrow -- an early-stage gold-silver project. In addition to the above properties, the company has an alliance with Teck Resources Ltd. on regional copper-gold exploration in the prospective Trans Altai region of southwest Mongolia.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.