Erdene Resource Development Corp. [ERD-TSX; ERDCF-OTC; Mongolia] reported assay results from four holes in the South Ulaan gold discovery expansion drill program in Mongolia. Today’s results confirm thick sequences of high-grade gold mineralization continue west of the initial discovery.
Drilling expands mineralization at South Ulaan to the west, with multiple thick gold mineralized zones with high-grade intersections.
Drill hole UDH-21 returned 77 metres of 3.2 g/t gold and 71 metres of 0.8 g/t gold, including 27 metres of 8.7 g/t gold, including one metre of 156.5 g/t gold.
UDH-22 returned 65 metres of 3.1 g/t gold within 152 metres of 1.7 g/t gold, including 7 metres of 18.5 g/t gold, including one metre of 119.8 g/t gold.
UDH-19 returned 190 metres of 0.7 g/t gold, including 5 metres of 12.5 g/t gold, including one metre of 60.6 g/t gold.
Together with the Bayan Khundii deposit, Dark Horse and Altan Arrow Prospects, these results demonstrate the potential scale of mineralization within the Khundii-Ulaan Hydrothermal system. Results from drilling at the Dark Horse Zone, consisting of 36 holes totaling 2,286 metres, will be reported by mid-Q4. Exploration plans are being developed to test high-priority geochemical and geophysical targets throughout the large Khundii-Ulaan system
â€œToday’s results confirm the significance of the Ulaan gold discovery and are a testament to the potential for discovery across the wider area,â€ said Peter Akerley, President and CEO. â€œThis new discovery is producing the thickest intervals of gold mineralization intercepted in the District to date, including exceptionally high-grade zones, and remains open at depth and to the west.â€
â€œUlaan is part of a very large gold-bearing hydrothermal alteration system underlying our Khundii and Ulaan licenses that show the potential to host a multimillion-ounce gold deposit,” continued Akerley. â€œExploration continues across this system with results from additional drilling at our Dark Horse prospect anticipated by mid-Q4.â€
The recently completed Ulaan drill program was designed to test the extent of mineralization around the discovery drill holes reported on August 11, 2021. The program consisted of nine holes totaling 3,204 metres. Drill holes were spaced 25 to 50 metres apart and to a maximum depth of 461 metres, testing targets over an area of approximately 1.2 km2.
The Ulaan exploration license and adjoining Khundii mining license cover nearly 4,000 hectares of the Khundii-Ulaan hydrothermal alteration zone, which extends from Ulaan over 10 km to the northeast.
Exploration results to date suggest the greater Khundii-Ulaan alteration zone and known gold occurrences are part of the same, large, gold-bearing hydrothermal system which remains largely under-explored.
The company has been the leader in exploration in southwest Mongolia over the past decade and is responsible for the discovery of the Khundii Gold District comprised of multiple high-grade gold and gold/base metal prospects, one of which is currently being developed, the 100%-owned Bayan Khundii Gold Project, and another which is being considered for development, the 100%-owned Altan Nar Project. Together, these deposits comprise the Khundii Gold Project.
The Bayan Khundii Gold Resource includes 585,100 ounces of 2.19 g/t gold Measured and Indicated (M&I) and 35,900 ounces of Inferred resources at 2.18 g/t gold. Within the M&I resource, a Proven and Probable open-pit reserve totals 409,000 ounces at 3.7 g/t gold, providing significant potential for reserves growth with the development of the remaining M&I and Inferred resources.