Erdene drills 68.2 g/t gold over 3.0 metres at Ulaan Southeast, Mongolia

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Erdene Resource Development Corp. [ERD-TSX; ERDCF-OTC, Mongolia] reported initial results from the first phase of its 2022 drill program at Ulaan Southeast, located 300 metres west of the Bayan Khundii gold deposit in southwest Mongolia. The objective of this phase of the program has been met with the confirmation of continuity of an interpreted high-grade gold bearing “feeder” structure at the northern end of the Ulaan Southeast discovery, and expansion of the discovery to the west and at depth.

Testing of the conceptual “feeder” structure in the northern portion of Ulaan Southeast returned the highest average grade intersection to date at Ulaan, including 3 metres of 68.3 g/t gold within 41 metres of 8.1 g/t gold (UDH-35), along with the highest silver grades encountered at Ulaan, up to 133g/t over 1 metre.

A pending hole (UDH-53), down plunge to the west, returned visible gold in an intense zone of alteration and quartz veining and breccia. This potential “feeder” zone remains open to the west and at depth. South of the interpreted “feeder” zone, UDH-36 confirmed continuity of the thick gold mineralized zones established in multiple holes within the Ulaan Southeast discovery and returned 179 metres of 1.2 g/t gold, ending in mineralization, including 1 metre intervals of 33.4, 15.5, 14.4 and 10.8 g/t gold, in quartz adularia veins and stockworks.

UDH-28, 150 metres west of UDH-35, was extended to test the down-dip projection of the favoured tuffaceous host that returned thick intervals of lower grade gold mineralization confirming the westward extension of the mineralized zone and remains open to the west.

The depth potential of Ulaan Southeast was tested with the extension of UDH-21 that originally returned 77 metres of 3.2 g/t gold, including 27 metres of 8.7 g/t gold, ending in mineralization. It returned further 108 metres of 0.5 g/t gold, ending in 33 metres of 0.9 g/t gold.

Two holes tested the southern and southwestern extent of mineralization (UDH-37 and UDH-38) confirming continuity of gold mineralization in this area. Bayan Khundii Reverse Circulation (RC) drill program is currently underway. The program is targeting near-surface zones of high-grade oxide mineralization, similar to those encountered at Dark Horse Mane (including 5 metres 123.5 g/t gold in AAD-178. A total of 179 shallow holes (1,314 metres) were completed with results expected in mid-Q3 2022.

“Today’s results, including the highest average grade intersection on the Ulaan license to date, as well as the expansion of the deposit to the west and at depth, demonstrate the scale potential of this recent discovery,” said Peter Akerley, President and CEO. “Mineralization has now been extended over a strike of almost 200 metres, to a depth of 400 metres, and remaining open to the west and down dip.”

The primary objective of the Ulaan Southeast drill program was to test interpreted high-grade “feeder” zones along intersecting structures in the northern portion of the Ulaan Southeast discovery. In addition, extensions to the south, west and at depth were included in the initial phase to test expansion potential of the discovery.

Scout drilling was also conducted on high-priority greenfield targets in the southern and western portions of the Ulaan license, west of the Ulaan Southeast gold discovery. Results are pending for 13 scout holes and one hole-extension, totaling 1,441.6 metres.

The continued success at Ulaan Southeast supports an increased effort to continue to define and expand this gold-bearing system. A significant program will be undertaken to extend both the interpreted “feeder zone” and the broader Ulaan area to the west. This program is under development and will be informed by the pending results. In addition to a follow up Ulaan drill program, additional drilling is planned for Dark Horse, Altan Arrow and Altan Nar in the coming months. Details on this program will follow in Q3 2022.

The previously announced 3,000-metre reverse circulation drilling program is underway with approximately 180 holes completed to date. The goal of the RC program is to test for shallow, oxide related supergene gold zones, similar to those encountered at Dark Horse Mane in 2021 (intercepted up to 195 g/t gold over 1 metre), in areas masked by younger cover sediments.

Erdene Resource has interests in three mining licenses and two exploration licenses in Southwest Mongolia, where exploration success has led to the discovery and definition of the Khundii Gold District.

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