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Be the first with the news that moves the market- Erdene Resource Development (TSX:ERD) has confirmed the presence of new near-surface gold zones at its Bayan Khundii Gold Project in Mongolia
- The company’s current drill program identified the continuity of a gold zone southeast of the project’s primary Midefield orebody
- This suggests the potential for isolated intersections adjacent to existing reserves which may be expanded
- Drill samples have been sent to SGS Laboratory in Ulaanbaatar with results expected in July
- Erdene Resource Development (ERD) is up 1.67 per cent and is traing at C$0.30 per share
Erdene Resource Development (TSX:ERD) has confirmed the presence of new near-surface gold zones at its Bayan Khundii Gold Project in Mongolia.
Located in the southwest of the country within the Khundii Gold District, the Bayan Khundii Gold Project covers 2,309 hectares and sits roughly 16 kilometres south of the company’s Altan Nar deposit.
Erdene’s current drill program at the project has been designed to test mineralisation in zones considered to be low-grade stockpile material, but which may also have the potential to add significant value during the early stages of mining.
The first of these areas to be tested lies southeast of the project’s primary Midfield orebody, where historic drilling identified a high-grade intersection that returned 52.9 grams per tonne of gold over three metres. This intersection sits at the northern corner of the current 18-hole drill program, which covers an area of roughly 50 metres by 50 metres.
Drilling in the region has so far intersected two parallel veins originating within five metres from the surface and continuing to a vertical depth of approximately 30 metres. Several of these holes have shown visible gold within quartz adularia veins, fault-related breccia and the iron oxide cements of these breccias.
The visible gold has now been identified to follow the contour of a Jurassic-age conformity, which can be traced the largely un-tested near-surface areas to the south and along the eastern margin of the Striker orebody.
Peter Akerley, President and CEO of Erdene Resource Development, noted that the newly discovered gold zones suggest the potential for existing mineral resources to be expanded.
“The current drill program has confirmed continuity of a new near-surface gold zone, southeast of the main Midfield orebody, with multiple intersections containing visible gold.
“The success of this drilling program demonstrates the potential for isolated gold intersections adjacent to the existing reserves to be expanded, which could add very-high grade resources in the near-surface,” he said.
The drill samples have now been sent to SGS Laboratories in Ulaanbaatar, the results of which are expected in July and will inform future drill programs.
Meanwhile, drilling activities have shifted to a near-surface target at the southwest corner of the Striker orebody zone.
Erdene Resource Development (ERD) is up 1.67 per cent and is trading at C$0.30 per share at 12:02pm EDT.
