Erdene intersects more Mongolian high-grade gold

Erdene Resource Development Corp. [ERD-TSX; ERDCF-OTC] has released the drilling results from its recent high-grade discovery at its 100%-owned Bayan Khundii gold project in southwest Mongolia. The latest results continue to expand the near-surface, high-grade gold zones recently identified at Bayan Khundii.

“Our second quarter exploration program has been a tremendous success, following up on our initial high-grade drill results announced in late 2015,” said Peter Akerley, President and CEO of Erdene. “We have confirmed continuity of the very high-grade Striker zone, identified broad zones of gold mineralization at depth, and under post-mineralization cover, and identified high-priority targets through reconnaissance drilling and trenching. Following a period of review and interpretation, we are planning to return to drilling in the third quarter.”

The latest results include the final five drill holes and six trenches from the second quarter exploration program designed to test areas around the periphery of the Bayan Khundii Main zone and in the Northeast Zone 700 metres to the northeast. Highlights include:

• 2 g/t gold over 8.3 metres in BKD-44;
• 4 g/t gold over 70 metres to the end of the hole in BKD-44;

Drilling continues to confirm extensions of mineralization under post-mineral cover;

Northeast Zone trenching and drilling confirms gold mineralization 700 metres northeast of Striker Zone.

Previously reported drill and trench results from the 2016 second quarter Bayan Khundii exploration program include:

• 3 g/t gold over 63 metres and 2.3 g/t gold over 12 metres in BKD-17;
• 4 g/t gold over 3.0 metres and 26.8 g/t gold over 5.0 metres included in BKD-17;
• 9 g/t gold over 3.0 metres in BKD-19;
• 7 g/t gold over 7.0 metres in BKT-17;
• 1 g/t gold over 13 metres and 2.0 g/t gold over 14 metres (including 6.5 g/t gold over 4.0 metres) in BKD-21;
• 9 g/t gold over 27 metres, including 5.7 g/t gold over 8.0 metres, in BKD-22;
• 1 g/t gold over 70 metres (including 23 metres of 2.0 g/t gold) and 1.1 g/t over 18.2 metres in BKD-28;
• 0 g/t gold over 66 metres (including 2.0 g/t gold over 26 metres) in BKD-34;
• 3 g/t gold over 2.0 metres in BKD-40 (under younger post-mineralization cover).

Previously reported drill results from the 2015 fourth quarter Bayan Khundii exploration program include:

• 5 g/t gold over 7.0 metres in BKD-01;
• 4 g/t gold over 3.0 metres in BKD-03;
• 9 g/t gold over 26.4 metres (including 9.9 g/t over 15 metres) in BKD-09;
• 7 g/t gold over 35 metres (including 16.2 g/t over 12 metres) in BKD-10.

Holes BKD-44 and BKD-45 tested the near-surface extension of the high-grade Striker Zone and extended drilling farther north under post-mineralization cover to test for an extension of gold mineralization. The Striker Zone was intersected at the top of BKD-44 with 8.3 metres of 14.3 g/t gold; additionally, a broad zone of gold mineralization was intersected under cover, deeper in the hole from 39 metres to 109 metres (70-metre interval) averaging 0.4 g/t gold with values ranging up to 3.9 g/t gold over 1.0 metre and ending in mineralization. BKD-44 had moderate to intense, multistage silica-sericite alteration with abundant quartz veins and thin hematite veinlet stockwork throughout. A second hole, BKD-45, collared farther northeast, also returned highly anomalous intervals with 42 metres averaging 0.2 gram per tonne gold.

The licence has a 2% net smelter return royalty in favour of Sandstorm Gold with a buyback option to reduce the royalty to 1%. Refer to company press release for more information.