Results from Erdene Resource Development Corp's Zuun Mod Molybdenum/Copper Project in southwest Mongolia continue to enhance the project's potential and will be used to update the resource estimate.
Erdene's president and CEO Peter Akerley says, “The recent drilling program at Zuun Mod has been a tremendous success. We have accomplished our main goal of expanding the higher-grade zones within this very large molybdenum-copper deposit and have discovered a significant new zone of porphyry copper mineralization more than 2km from the main deposit.
“As a result, we are now planning an expanded drilling program to further define these exciting new results.”
The 2010 drilling program consisted of 16 holes including eight deepened holes and eight new holes for a total of 4802 metres. Thirteen of these holes, eight deepened holes and five new holes, were drilled within the area of the deposit to a depth of 500 metres. The remaining three new holes were drilled to test identified geophysical targets well outside the existing resource area but within the large Zuun Mod porphyry complex.
One of the goals of the program was to test the deposit at depths between 350 and 500 metres as several previously drilled deep-holes demonstrated that the molybdenum and copper mineralization at Zuun Mod continues at depth. The 13 holes drilled within the deposit area all contained mineralized zones with grades of molybdenum and copper consistent with or superior to the deposit average.
Included in these mineralized zones was a newly identified high-grade zone. This hole intersected 118 metres from 362 metres @ 0.106% molybdenum and 0.098% copper. This zone can be correlated with higher-grade zones in surrounding new and previously drilled holes.
These results continue to demonstrate good potential to discover additional high-grade zones within the Zuun Mod deposit. This will be one of the goals of an expanded drilling program expected to start early in the second quarter at Zuun Mod.
These results will now be incorporated in a new resource estimate. It is anticipated the new data will result in an increased level of confidence in resource classification at depths between 350 and 500 metres. Resources at these depths are, for the most part, currently classified as inferred. In addition, the new zone of higher grade molybdenum and copper identified at depth in the South Racetrack in the vicinity of the above hole has the potential to have an impact on the overall deposit grade and ultimate pit design.
The recently completed drill program within the resource area further defined the mineralization in key areas expected to be initially developed for mining. The data from this program is now being used to define a more extensive pre-feasibility level drill program designed to upgrade inferred resources to measured and indicated categories.
The Zuun Mod currently contains an NI 43-101 compliant resource of 215 million pounds of molybdenum in the measured and indicated category grading 0.054% molybdenum and a further 208 million pounds in the inferred category grading 0.051% with slightly higher copper grades in all categories, making it one of the largest undeveloped molybdenum-copper deposits in Asia.
The significant new copper zone, Khuvyn Khar, 2.2km northwest of the main Racetrack deposits, was identified through a drill hole which intersected 34 metres of 1.3% copper from 308 metres testing a geophysical target. This hole is within a 2sqkm area that exhibits intense alteration and copper geochemical anomalies on surface and in previous intersections from limited drilling in the vicinity.
In addition, there are a number of similar targets in the vicinity of this hole. This area will be tested through additional exploration drilling expected to start early in the second quarter.
Erdene controls the Zuun Mod property through a single exploration licence totalling 30,650 hectares in Bayankhongor Province, about 950km southwest of Ulaanbaatar and 215km from a railhead on the Mongolia-China border at Ceke.
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