Erdene Resource Development Corp. Reports Earnings Results for the Six Months Ended June 30, 2015; Provides an Update on Principal Metals Projects in Mongolia
Aug 13 15
Erdene Resource Development Corp. reported earnings results for the six months ended June 30, 2015. For the period, the company's net loss was $738,614 or $0.01 per basic and fully diluted share compared to $1,349,341 or $0.02 per share for the same period in 2014. Exploration expenditures, including capitalized costs, totaled $780,465 compared to $981,503 for the same period in 2014.
The company provided an update on the company's principal metals projects in Mongolia, including the company's Altan Nar gold-polymetallic project where a definition and expansion drill program has commenced. On March 31, 2015, Erdene announced an initial NI 43-101 mineral resource estimate for Discovery Zone and Union North, the two most advanced of the 18 target areas identified along the 5.6 km long Altan Nar mineralized corridor. The mineral resource consists of 147,000 ounces gold equivalent averaging 2.5 g/t AuEq in the Indicated category, and 102,000 oz AuEq averaging 2.1 g/t AuEq in the Inferred category, at a 1.0 g/t AuEq cut-off, within 1.8 million tonnes Indicated and 1.5 Mt Inferred, respectively. Gold equivalent calculations assume metal prices of $1,200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc. The mineralized zones are orientated at close to 45 degree dip at UN and range from vertical to sub-vertical at DZ, with little to no overburden cover, and with widths in the range of a few metres up to 50 m, with approximately 90% of the mineral resource identified to date within 150 m of surface. A diamond drilling program commenced at Altan Nar on August 7, 2015. The focus of the drill program will be in-fill drilling at UN and DZ to increase confidence in the high-grade, near-surface zones, as well as testing several new targets outside of the initial resource area to provide future growth potential. UN and the northern portion of DZ are the most advanced targets in regards to initial development with wide zones of high-grade mineralization, well established in trenching and drilling. This drilling program has been designed to provide higher confidence in the initial pit location and design. Trenching at UN has provided some of the high grade mineralization to date including 19 m of 8.9 g/t gold, 66 g/t silver, 7.7% lead and 2.5% zinc. The evaluation of remaining target areas will assist the company in determining the high priority areas for defining additional near-surface resources within the 18 target areas at Altan Nar. Results of the drill program are anticipated between late Third Quarter and Fourth Quarter of 2015. The total drilling is expected to be approximately 1,500 m. Erdene is considering various options for the development of the Altan Nar mineral resource and from a processing perspective, exploring the production and export of precious and base metal rich concentrates and/or Carbon in Leach gold recovery on whole ore or concentrate. The company's focus is on initial development of DZN and/or the UN portions of the mineral resource which have the high volume and highest grades respectively. Representative composites of drill core from each zone have been delivered to Blue Coast Research Ltd. of Parksville, BC, which was selected to complete this initial testwork program, referred to as the "Altan Nar Amenability Metallurgical Testwork Program. Under an amended option agreement with Tian Poh Resources Limited, Tian Poh must complete a minimum of 1,000 m drilling on Erdene's Khuvyn Khar license by October 30, 2015. The drilling program is expected to commence in third quarter 2015, and will focus on the company's Khuvyn Khar copper-silver porphyry prospect. Data collected from Erdene's 2014 exploration program at Khuvyn Khar, which included 1,532 m of trenching, provided further definition and confidence in the modeling of new, partially buried, high priority copper porphyry drill targets. The priority target area is located in the northern portion of an annular feature, 12 km in circumference which hosts, on the western side, the company's 3 km long Zuun Mod molybdenum-copper porphyry deposit. Multiple porphyry centres occur throughout the trend with the drill target characterized by a 1 km x 800 m anomaly including gold, silver and copper anomalism in soil and rock, chargeability high, resistivity and gravity low features, and potassic and phyllic alteration of porphyry intrusives. Previous drilling in the fringe of the target area has returned numerous, wide intercepts of copper mineralization including 278 m of 0.13% copper and high grades zones up to 34 m of 1.3% copper and 9.24 g/t silver.
Erdene Resource Development Corporation to Commence Drilling on Khuvyn Khar Copper Porphyry Project
Jul 21 15
Erdene Resource Development Corporation announced that drilling to commence on Khuvyn Khar Copper Porphyry Project. The Khuvyn Khar copper-silver porphyry project ("Khuvyn Khar") is located on the same mining license that hosts the Company's Zuun Mod deposit, 2.2 km to the southeast. In 2014, work on the Khuvyn Khar project area included rock chip sampling, geophysical modeling, detailed vein and alteration mapping of high priority areas and a 1,532 metre trenching program designed to identify the geology, alteration and mineralization in area of poor outcrop exposure located within high priority target areas. The data collected from this exploration work provided further definition and confidence in the modelling of a potential copper porphyry target at Khuvyn Khar. The 2014 work program culminated in the identification of new, partially buried high priority drill targets in the north-central Khuvyn Khar area as well as a new target in the western portion of the Khuvyn Khar property. Exploration at Khuvyn Khar continues to confirm the potential for copper-rich porphyry style mineralization, a conclusion supported by high-grade copper-silver mineralization intersected by Erdene in previous drilling (34 m of 1.34% copper and 9.24 g/t silver). The Mineral Resource estimate was prepared under the supervision and based on information compiled by Philippe Baudry, who is an employee of Minarco-MineConsult. Philippe Baudry is a Qualified Person within the meaning of such term under NI 43-101.
Erdene Resource Development Corp. Appoints Layton Croft as Non-Executive, Independent Member of the Board
Jul 6 15
Erdene Resource Development Corp. announced the appointment of Layton Croft to the company's Board of Directors. Mr. Croft will serve as a non-executive, independent member of the Erdene board, effective immediately. Most recently he worked in Peabody Energy, as Vice President, External Relations - Asia (Singapore).