HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 27, 2012) -Erdene Resource Development Corp. ("Erdene" or "Company") (TSX:ERD), is pleased to announce it has received final assays from the recently completed drilling program at the Company's 100% owned Altan Nar (Golden Sun) gold-polymetallic project in southwest Mongolia.
Fourth Quarter 2012 Drill Program Highlights
- Gold mineralization trend has been traced through drilling over 3 kilometres and remains open
- Newly defined targets include near surface, high grade zones, up to 9 metres of 4.4 g/t gold within 50 metres of surface
- The Discovery Zone ("DZ") was extended 50 metres northeast to 400 metres in strike length where it remains open
- Northeast extension of DZ includes 94 metres of 0.45 g/t gold and includes a 4.5 metre interval at the bottom of the hole averaging 2.4 g/t gold, 18.8 g/t silver, 2.8% lead and 0.86% zinc
- DZ gold mineralization has been extended to 160 metres depth in the southwest and to 235 metres depth in the northeast ending in 5 metres of 4.77 g/t gold, 6 g/t silver 0.52% lead and 0.59% zinc and is open at depth
"The results from the recent drill program are considered excellent, with multiple new gold targets now firmly established, along with confirmation of the depth continuity and northern lateral extension of the Discovery Zone" said Peter Akerley, President and CEO. "In a relatively short time, drilling has demonstrated Altan Nar to be a very large, gold mineralized epithermal system which includes both high grade precious and base metal zones within broad, low grade zones. We look forward to continuing to expand this exciting project as we move into the New Year."
Discovery Zone Drilling
Six holes were drilled in the DZ, two of which (TND-43 and 50) were 50-metre step-out holes completed at the southwest and northeast ends of the DZ respectively. The four remaining holes (TND-55 to 58) were drilled to test the vertical continuity of the DZ. Results from these holes are presented below in Table 1.
As previously reported in the Company's November 13, 2012 press release, assay results from the 50-metre step-out hole TND-50 confirmed the lateral extension of the DZ to the northeast, with the intersection of a broad zone of gold-polymetallic mineralization over a 94 metre interval. This zone averaged 0.45 g/t gold and was bounded by higher grade gold zones, including a five metre interval averaging 2.7 g/t gold (111 to 116 metres) and a 4.5 metre interval at the bottom of the hole (200 to 204.5 metres) averaging 2.4 g/t gold, 18.8 g/t silver, 2.8% lead and 0.86% zinc.
Holes TND-55 to 58 were drilled to test the depth extension of the DZ approximately 50 metres below previously identified gold mineralization. All four holes intersected mineralization and extended the gold-polymetallic zones to depths between 160 and 235 metres (vertical from surface). A 31 metre interval in hole TND-55 averaged 0.49 g/t gold, and included two metre and four metre intervals averaging 1.73 and 1.69 g/t gold, respectively. Hole TND-58, located at the northeast end of the DZ and the deepest hole drilled to date at Altan Nar, intersected a five metre interval averaging 4.77 g/t gold at the bottom of the hole, thus extending the vertical depth of the DZ to 235 metres.
These results confirm that the gold mineralization within the DZ continues to the depths tested and additional drilling will be required to determine the true vertical extent of the gold mineralization. A map portraying the drill results projected to surface and the location of drill holes can be viewed by clicking the links below this press release. A separate PowerPoint presentation of the Altan Nar 4Q-2012 program has been placed on the Erdene website at www.erdene.com.
|Table 1|| || || || || || || |
| ||From|| ||Interval|| || || || |
|Hole No||(m)||To (m)||(m)||Au g/t||Ag g/t||Pb %||Zn %|
| || ||(EOH*)|| || || || || |
Note: TND holes were drilled at approximately 45 to 60 degree dip and intersected zones are interpreted to be steeply-dipping to vertical. Additional information is required to determine true widths.
*EOH - End of hole
Regional Reconnaissance Targets
Assays results have been received for the 11 shallow reconnaissance holes, with eight of these holes returning intervals (1 to 19 metres) of 0.5 g/t gold or higher (up to 4.4 g/t gold over 9 metres). New assay results have been received for holes TND-53 and 54 since the last update issued on November 13, 2012. Hole TND-54, drilled to test a target located 2.6 kilometres from the original discovery site, intersected multiple zones of epithermal veins and breccia-bearing moderate sulfide mineralization including galena and sphalerite, with one zone containing two metres of 1.2 g/t gold. The hole ended in 15 metres of anomalous gold (>0.1g/t) and was terminated at a depth of 126.5 metres.
As previously reported (October 29, 2012) results for two holes (TND-45 and 46) indicated a substantial new gold-polymetallic zone is located approximately 1.3 kilometres northwest of the DZ. TND-46 contains multiple high grade gold zones separated by post-mineralization dykes which, when included in the overall assay results, yielded an average grade of 1.3 g/t gold over 47 metres.
TND-49 was drilled 100 metres to the west of the DZ and intersected a parallel zone to the main mineralization with multiple gold-bearing intervals ranging from one to four metres in width and from 0.5 to 2.7 g/t gold.
Table 2 presents the results for the 11 reconnaissance holes from the recent drilling program.
|Table 2|| || || || || || || |
| ||From||To||Interval|| || || || |
|Hole No||(m)||(m)||(m)||Au g/t||Ag g/t||Pb %||Zn %|
|TND-47||no interval greater than 0.5g/t Au|| || || |
|TND-52||no interval greater than 0.5g/t Au|| || || |
|TND-53||no interval greater than 0.5g/t Au|| || || |
*Note: TND holes were drilled at approximately 45 to 60 degree dip and intersected zones are interpreted to be steeply-dipping to vertical. Additional information is required to determine true widths.
Multiple targets with geophysical and geochemical signatures similar to the DZ remain untested within the 1.5 kilometre by 5 kilometre Altan Nar prospect. In addition, the most recent round of drilling has identified multiple gold zones that require follow-up drilling.
Altan Nar Background
The recently completed drill program, initiated on October 7, 2012 consisted of 17 holes that totalled 2,465 metres, including 11 wide-spaced reconnaissance holes and six holes to test the lateral and down dip extension of the DZ. The Altan Nar gold discovery was made approximately one year ago following a large regional exploration program carried out by Erdene's technical team. This was followed by initial drilling that returned 11 metres of 9.0 g/t gold within broad zones containing up to 55 metres of over 1.0 g/t gold. The licence covers an area of 4,669 hectares and is about to enter the fourth year of a nine year term following which it can be converted to a mining licence by meeting the requirements defined by the Minerals Law of Mongolia.
J.C. (Chris) Cowan, P.Eng. (Ontario) is a 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 Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the company incorporates a QA/QC sample protocol utilizing prepared standards, blanks and duplicates.
November 9, 2012, was the effective date for a Plan of Arrangement ("Arrangement") between Erdene and Morien Resources Corp. ("Morien"). Pursuant to the Arrangement, all of Erdene's North American property interests, consisting primarily of its 25% interest in the Donkin Coal Project, are now held by Morien which trades on the TSX Venture Exchange under the symbol "MOX". Erdene (TSX:ERD) is now focussed on precious and base metal exploration in Asia, primarily Mongolia. As per the Arrangement, Erdene's common shares were reduced to 47,902,947 issued and outstanding and 50,279,447 fully diluted.
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 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.
To view the maps associated with this release, please click on the following links: http://media3.marketwire.com/docs/Altan_Nar_Gold_Trend.jpg /