Highlights1:
- New high-grade, shallow, gold discovery hosted in a 4 kilometre long structure in the western portion of Dark Horse demonstrates potential for significant gold discoveries near the Bayan Khundii deposit:
° AAD-58 returned 45 metres of 5.97 g/t gold beginning at 10 metres down-hole, including 1 metre of 82.5 g/t gold within 8 metres of 27.1 g/t gold
° AAD-57, located 180 metres north of AAD-58, returned 16 metres of 0.6 g/t gold beginning at 52 metres down-hole, and 48 metres of 1.2 g/t gold beginning at 194 metres down-hole, including 30 metres of 1.7 g/t gold
° AAD-51, collared 1 kilometre north of AAD-57, returned 3 metres of 5.6 g/t gold beginning at 138 metres down-hole and 10 metres of 0.9 g/t gold starting 222 metres downhole
° Results are pending for AAD-61, drilled 500 metres north of AAD-57 along the same mineralized trend and AAD-60 drilled 750 metres to the northeast (NE) along the main NE trending Dark Horse structure - Gold mineralization is associated with a north-south (N-S) structure traced by its magnetic low signature, local exposures of epithermal breccia and stockwork veining, and gold anomalism in soil
° AAD-57 and 58 are located at the intersection of the N-S structure and the NE trending Dark Horse structures with associated large magnetic low and high IP chargeability anomalies, similar to the Bayan Khundii setting
• The Bayan Khundii Gold Resource2 includes 521,000 ounces of 3.16 g/t gold Measured and Indicated (“M&I”)3 and 103,000 ounces of Inferred resources at 3.68 g/t gold - A significant exploration program is planned for Q1 2021 to follow-up on this exciting discovery
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1 Reported intervals in this release are downhole apparent widths. Continued exploration is required to confirm anisotropy of mineralization and true thicknesses
2 For details of the Mineral Resources see Khundii Gold Project NI 43-101 Technical Report, Tetra Tech
3 M&I: 171,000 ounces of 3.77 g/t gold Measured, and 349,700 ounces of 2.93 g/t gold Indicated
Quotes from the Company:
“The Dark Horse prospect has been established as the most significant zone of gold mineralization since our discovery of the Bayan Khundii gold deposit,” said
“I would like to congratulate and thank our exploration team for the continued success. This team has delineated three deposits and discovered multiple prospects, including this new Dark Horse discovery in our
Dark Horse (
The phase II Dark Horse drill program was completed in early
This newest discovery is located within a relatively under-explored area of the Dark Horse prospect. Situated along a north-south (N-S) trending structure traced by a magnetic low signature, local exposures of epithermal breccia and stockwork veining exhibiting gold anomalism in soil over a trend of approximately 4 kilometres. The N-S structural feature targeted by holes AAD-51, AAD-57 and AAD-58 and AAD-61 is located one kilometre west of AAD-48 (see
The new discovery area (AAD-57 and AAD-58) is located proximal to the intersection of the N-S structure and the NE trending Dark Horse structures with associated gold in soil anomalism, pronounced magnetic low and high IP chargeability signatures. Over one kilometre north from AAD-57 and AAD-58, along the N-S structure, hole AAD-51 returned multiple anomalous gold zones including 3 metres of 5.6 g/t gold at 138 metres and 10 metres of 0.9 g/t gold at 222 metres down-hole depth. One additional hole has tested the northern portion of the structure with results pending; AAD-61, located 500 metres north of AAD-57. South of the new discovery area, the N-S structure continues (untested) for 1.3 kilometres to AAD-33 (85-metre hole in
Dark Horse Phase II Drilling Highlights (intervals averaging greater than 0.3 g/t gold)
Hole | From | To | Interval (1) | g/t Au (2) |
AAD-51 | 138 | 141 | 3 | 5.61 |
Incl | 140 | 141 | 1 | 16.22 |
And | 222 | 232 | 10 | 0.92 |
AAD-52 | 42 | 60 | 18 | 0.32 |
And | 83 | 86 | 3 | 1.00 |
AAD-55 | 4 | 6 | 2 | 2.28 |
AAD-57 | 52 | 68 | 16 | 0.58 |
And | 160 | 180 | 20 | 0.45 |
And | 194 | 242 | 48 | 1.18 |
Incl | 202 | 232 | 30 | 1.74 |
AAD-58 | 10 | 55 | 45 | 5.97 |
Incl | 32 | 54 | 22 | 11.98 |
Incl | 36 | 37 | 1 | 21.18 |
Incl (3) | 41 | 49 | 8 | 27.07 |
Incl | 43 | 44 | 1 | 82.53 |
1 Reported intervals are apparent thicknesses (i.e. downhole widths). Insufficient drilling has been completed at Dark Horse to determine orientation of the mineralized zones and therefore true widths cannot be determined at this time. Exploration drill holes are typically oriented normal to (at a right angle to) the trend of potential mineralized targets and holes dips range from 45 to 75 degrees.
2 Reported grades for intervals are weighted averages based on length of sampling intervals, typically 1 to 2 metres. No top cut has been applied; however, intervals greater than 10 g/t gold are reported separately for clarity.
3 Seven of the eight 1-metre samples in this interval returned assays greater than 10 g/t gold, the eighth sample returned an assay of 9.5 g/t gold. The highest grade interval (43-44 metres) is reported separately.
Note: Exploration holes AAD-50, AAD-53, AAD-54, AAD-56 and AAD-59 intersected anomalous gold and/or zones anomalous in pathfinder elements (arsenic, molybdenum and antimony) but no significant intervals greater than 0.3 g/t gold.
The N-S feature is clearly evident on the magnetic survey map (see plan maps below), as are numerous zones of intersection between this structure and northeast trending structural lineations, characteristic of the Dark Horse prospect. Current structural interpretations suggest the N-S trending structural features represent zones of dilation formed during tectonic compression from the South Southwest (Kloppenburg 2017).
At surface, AAD-57 and AAD-58 are located within a porphyritic andesite unit and a series of residual silica quartz bodies (200 to 300 metres wide), possibly indicating a higher level epithermal or lithocap type environment. Holes AAD-57 and AAD-58 are located 180 metres apart and reside within a broad (approximately 100 metres by 500 metres) north-south elongate magnetic low bisected by a northeast structural lineation. This magnetic signature is currently interpreted as a zone of primary magnetite destruction through intense hydrothermal alteration. Induced polarization (IP) geophysics indicates a relatively intense chargeability high signature coincident with the magnetic low signature and soil geochemistry in the prospect area reflecting the high sulfide content of the alteration zone.
AAD-58 was a 200-metre hole drilled at a dip of 45 degrees along a southeast (135 degree) azimuth to test the coincident magnetic low, chargeability high and geochemically (gold-arsenic) anomalous signature associated within the N-S / NE structural intersection. This hole was drilled within an intensely altered fine-grained volcanic sequence exhibiting pervasive quartz-sericite-pyrite style alteration. Gold mineralization in this hole (45 metres of 5.97 g/t gold) is associated with a broad zone (10-55 metres downhole) of intense silicification, white mica (sericite) alteration and oxidization (iron oxide after sulphide) alteration. Veining within this interval occurs as crustiform textured quartz-sulphide (pyrite-limonite) veins, exhibiting both stockwork and sheeted characteristics. The most intense gold mineralization, 8 metres of 27 g/t gold (41-49 metres), is hosted within an intensely oxidized black epithermal breccia zone, geochemically anomalous in gold, arsenic, antimony, molybdenum and copper.
AAD-57 is a 251-metre hole drilled at a dip of 75 degrees along an easterly (90 degree) azimuth. This hole was collared 180 metres north of AAD-58 as a follow up to exploration drill hole AAD-34 completed in 2018, which returned anomalous gold, arsenic, antimony and copper. AAD-57 is located proximal to the N-S / NE structural intersection, and intense magnetic low and chargeability high signatures intersected within AAD-58. AAD-57 was drilled within an intensely white mica (sericite) altered and moderate to intensely silicified tuffaceous and brecciated volcanic sequence. The gold mineralization within AAD-57 is associated with broad zones of intense silicification and white mica (sericite) alteration dominated by quartz-carbonate-sulphide (arsenopyrite ± pyrite) stockwork veins. Like AAD-58, AAD-57 exhibits sulphide (arsenopyrite and pyrite) concentrations and anomalous antimony coincident with the gold mineralization although the intensity of sulphide oxidation in AAD-57 is not as high as in AAD-58, likely due to its increased depth.
Located 1.2 kilometres north of AAD-58, AAD-51 was a 250 metre hole drilled at a dip of 45 degrees along a southeast (135 degree) azimuth, positioned to test the N-S structural feature. This drill hole was completed as a follow-up hole to AAD-18 (2018), which intersected anomalous gold mineralization. AAD-51 intersected multiple anomalous gold-bearing zones, including 3 metres (138-141 metres down-hole) of 5.6 g/t gold including 1 metre of 16.2 g/t gold and 10 metres (222-232 metres down-hole) of 0.92 g/t gold. Gold mineralization is associated within a sequence of intensely white mica (sericite) altered tuffaceous units hosting quartz-limonite stockwork veinlets and epithermal style breccias.
Diamond drill holes AAD-52 and AAD-55 also intersected anomalous gold in other areas of the Dark Horse prospect, including the following highlights: AAD-52: 18 metres of 0.3 g/t gold, from 42 down hole depth and 3 metres of 1.0 g/t gold at 83 metres, and AAD-55: 2 metres of 2.3 g/t gold, beginning 4 metres down hole. These areas will be further evaluated, and the results incorporated into future exploration programs.
Mongolia COVID-19 Update
Since confirmation of the first community transmission of COVID-19 in
The Company extends its appreciation to essential workers for their efforts to safeguard public health and help prevent the spread of COVID-19 in
Erdene’s deposits are located in the Edren Terrane, within the Central Asian Orogenic Belt, host to some of the world’s largest gold and copper-gold deposits. The Company has been the leader in exploration in southwest
The Bayan Khundii Gold Resource1 includes 521,000 ounces of 3.16 g/t gold Measured and Indicated (“M&I”)² and 103,000 ounces of Inferred resources at 3.68 g/t gold. Within the M&I resource, a proven and probable open-pit reserve totals 409,000 ounces at 3.7 g/t (see the full press release here), providing significant potential growth of reserves with the development of the remaining M&I and Inferred resources2.
In
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1 For details of the Mineral Resources see Khundii Gold Project NI 43-101 Technical Report, Tetra Tech
2 M&I: 171,000 ounces of 3.77 g/t gold Measured, and 349,700 ounces of 2.93 g/t gold Indicated
Qualified Person and Sample Protocol
Erdene’s drill core sampling protocol consisted of collection of samples over 1 or 2 metre intervals (depending on the lithology and style of mineralization) over the entire length of the drill hole, excluding minor post-mineral lithologies and un-mineralized granitoids. Sample intervals were based on meterage, 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 including a commercially prepared standard, blank and either a field duplicate, consisting of two quarter-core intervals, or a laboratory duplicate. Sample batches were periodically shipped directly to SGS in Ulaanbaatar via Erdene’s logistical contractor,
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 the ability to obtain required third party approvals, 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
Erdene Contact Information
Phone: | (902) 423-6419 |
Email: | info@erdene.com |
Twitter: | https://twitter.com/ErdeneRes |
Facebook: | https://www.facebook.com/ErdeneResource |
LinkedIn: | https://www.linkedin.com/company/erdene-resource-development-corp-/ |
YouTube: | https://www.youtube.com/channel/UCILs5s9j3SLmya9vo2-KXoA |
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Khundii Gold District
Three deposits, multiple Greenfield discoveries, limited exploration
Dark Horse - Bayan Khundii Plan Map
Structural Relationship
Dark Horse Prospect
Q4 2020 Phase 2 Drilling
Dark Horse Prospect
Section A
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