Erdene poised to drill new Mongolia gold target www.resourceworld.com
Erdene Resource Development Corp. [ERD-TSX; ERDI-MSE] said Friday June 18 it has commenced drilling on the Ulaan target located 350 metres west of the company’s Bayan-Khundii gold deposit in Mongolia.
“We are excited to test the potential of the southern portion of the Ulaan license area following the acquisition of 100% of the property in late 2020,” said Erden President and CEO Peter Akerley.
Erdene shares advanced on the news, rising 2.8% or $0.01 to 37 cents. The shares are currently trading in a 52-week range of 71 cents and 28.5 cents.
The Bayan Khundii mining license covers 2,309 hectares and includes the Bayan Khundii and Altan Nar deposits which are located 16 kilometres apart. Together these deposits comprise the Khundii Gold Project.
An independent feasibility study for the Bayan Khundii Gold project envisions a high-grade open pit mine, producing 63,500 ounces per year at an average grade of 3.71 g/t gold over seven years, using a carbon in pulp processing plant. Production is expected to begin in early 2022.
Erdene holds a 100% interest in the Ulaan license. The northern portion is situated along the western boundary of the Khundii license, while the southern area is approximately 350 metres west of the Bayan Khundi gold deposit, separated by the Khuren Tsav license held by the Mongolian government-owned gold company Erdenes Alt LLC.
Based on Erdene’s drilling near the western Khundii license boundary, satellite imagery, geophysical analysis and surface alteration, the hydrothermal system that hosts the Bayan Khundii gold deposit is expected to extend west, southwest of the Bayan Khundii deposit across the Khuren Tsav license and along the southern boundary of the Ulaan license.
Drilling results along the western boundary of the Khundii license intersected thick sequences of gold mineralization, locally beginning at surface, with the highest grades at 100 to 160 metres depth. Highlight intersections from drilling near the border include 7.0 metres of 18 g/t gold in BKD-220; 5.0 metres of 25 g/t gold in BKD-265, and 28 metres of 2.4 g/t gold in BKD-334. The latter is located to the north and outside the reported resource at Bayan Khundii.
Erdene said it has established a series of drill targets in the southern portion of the Ulaan license. It said initial drilling will be wide spaced, testing targets over an approximately 2.0-kilometre strike length to a maximum depth of 350 metres.
The target area is underlain by the same lithologic units associated with the Bayan Khundii gold deposit.
The Bayan Khundii gold resource includes 521,000 ounces of 3.16 g/t gold in the measured and indicated category and 103,000 ounces of inferred resources at 3.68 g/t gold. Within the measured and indicated resource is a proven and probable open pit reserve of 409,000 ounces at 3.7 g/t gold.
Published Date:2021-06-20