Erdene drills 3.47 g/t gold over 27 metres at Ulaan Southeast, Mongolia

Erdene Resource Development Corp. [ERD-TSX; ERDCF-OTC] reported final results from the second quarter 2022 drill program at Ulaan Southeast, located 300 metres west of the construction-ready 100%-owned Bayan Khundii gold project in southwest Mongolia. This program expanded known mineralization at the Ulaan Southeast discovery to the west and at depth, and intersected an interpreted high-grade, gold-bearing feeder structure. Follow-up exploration at Ulaan Southeast is currently under way.

Highlights include drill hole UDH-53 that returned high-grade mineralization within a projected feeder zone, including two metres of 24.9 g/t gold within 27 metres of 3.47 g/t gold. UDH-52, located 60 metres south-southeast of UDH-53, intersected a wide zone of mineralization – 189 metres averaging 0.8 g/t gold.

Mineralization at Ulaan Southeast has been traced over a 200-metre strike, to a depth of 450 metres, that remains open to the west and at depth. Highlights of Q2 drilling include UDH-35 that included the highest-average-grade intersection to date at Ulaan Southeast and intersected 23 metres of 13.7 g/t gold within 41 metres of 8.1 g/t gold, beginning 187 metres down hole.

UDH-21, including the hole extension, returned one of the thickest gold zones in the Khundii district, including 335 metres of 1.1 g/t gold, beginning 115 metres down hole, ending in mineralization, including 27 metres of 8.7 g/t gold within 77 metres of 3.2 g/t gold.

UDH-36 intersected 179 metres of 1.2 g/t gold, beginning 72 metres down hole that included several one-metre, high-grade intersections, ranging from 10 g/t to 33 g/t gold, and ending in mineralization at 350 metres.

“Ulaan drilling has returned very high-grade zones in the feeder structure as well as exceptionally thick zones of mineralization, exceeding 300 metres, which remain open, in the core of the discovery,” said Peter Akerley, president and CEO. “This newest Khundii district discovery is interpreted as the western extension of the Bayan Khundii deposit, demonstrating the resource expansion potential from deeper exploration in the district.

“In the past week, we launched a follow-up exploration program. The outcome of this program, as well as the results from the recently completed regional reverse circulation program, will focus our exploration work for the balance of 2022. We are confident that we are well on our way to achieving our two-million-ounce gold equivalent resource target by the end of the year.”

The primary objectives of the Q2 2022 Ulaan Southeast drilling program were to test interpreted high-grade feeder zones along bounding or intersecting structures in the northern portion of the Ulaan Southeast discovery, and to test mineralization at depth.

Six new holes, as well as five hole extensions, totalling 2,463.7 metres, were completed as part of the Q2 2022 Ulaan Southeast drilling program. Results are summarized in an attached table. Results for the final two holes in the program, UDH-52 and UDH-53, are newly reported; all other results were reported on June 6, 2022.

The Q2 2022 program at Ulaan Southeast confirmed a zone of high-grade mineralization interpreted to be associated with intersecting or bounding structures and possibly a feeder zone. Drill hole UDH-35 returned the highest-average-grade intersection to date at Ulaan Southeast, with 41 metres of 8.1 g/t gold starting 187 metres down hole. Drill hole UDH-36 extended high-grade mineralization farther west from the discovery area, intersecting one of the broadest zones of mineralization to date in Erdene’s Khundii gold district. Hole UDH-53 was drilled to confirm an extension of the feeder zone at depth and intersected 27 metres of 3.47 g/t gold, including three one-metre intervals greater than 10 g/t gold (up to 35.5 g/t gold), and ended in mineralization.

Step-out drill holes and hole extensions continue to expand the area of known mineralization, which remains open to the west and at depth. Hole extensions (an additional 100 metres to 200 metres, to total depths of 350 metres to 450 metres) demonstrated that gold mineralization extends over 400 metres vertically. Mineralization remains open at depth, with two of the holes extended to 450 metres and ending in mineralization.

The results to date demonstrate a broad and thick zone of mineralization over a vertical depth in excess of 400 metres, which remains open at depth and to the west.