www.marketwatch.com Oct 07, 2013
Erdene Resource Development Corp.CA:ERD -6.25% (“Erdene” or “Company”), is pleased to announce that it has commenced an exploration program at its wholly owned Altan Nar gold-polymetallic project in southwest Mongolia to further define the near-surface mineralization identified to date and prioritize new areas for the next phase of resource drilling. The Company is also pleased to report that on October 3rd the Mongolian Parliament approved a new Investment Law that will provide much greater stability in the taxation and legal regulatory system of Mongolia.
“The discoveries by our Company over the past two years in the Altan Nar area have established a new epithermal gold district in southwestern Mongolia. The objective now is to establish initial targets for open pit development at Altan Nar while continuing to explore this large area at surface and at depth where high-grade, gold-polymetallic shoots have been identified,” said Peter Akerley, President and CEO. “The passing of the new Investment Law brings welcomed stability to the regulatory framework of Mongolia and confidence to more rapidly develop this exciting new project.”
Altan Nar Gold – Polymetallic Project
The Altan Nar prospect is an extensively mineralized epithermal system consisting of steeply-dipping, gold-polymetallic breccias and veins across a 5.5 by 1.5 kilometre mineralized corridor. To date, field mapping, geochemical and geophysical surveys, 8,207 metres of drilling, metallurgical studies, and the evaluation of conceptual early development scenarios have been completed since discovery by Erdene in late 2011. The areas tested by drilling represent a small portion of the total target areas as defined by mapping, geochemical and geophysical surveys. The objective of this exploration program is to further define the near-surface mineralization, an important step in establishing the initial resource, and prioritizing new areas for the next phase of resource drilling. These targets, as outlined in the Company’s corporate presentation, will be the focus of approximately 1,200 metres of trenching and stripping. In addition, mapping of alteration zone mineralogy in exposed areas and drill core will be completed using the TerraSpec Mineral Analyzer.
The exploration data generated by this program will also be used to develop conceptual plans for initial open pit development. The program will test a minimum of ten targets on the Altan Nar licence. The highest priority targets currently include the Discovery Zone (“DZ”) North prospect where multiple drill holes have intersected a zone of mineralization that extends to surface and the newest drilling discovery, Union North, which returned multiple gold mineralized zones within 50 metres of surface, including 9 metres averaging 4.4 g/t gold. Union North is located over one kilometre northwest of DZ North.