Erdene Resource Development Corp reports high-grade gold intersections from the recently completed, maiden drill program at its wholly-owned Bayan Khundii Gold Project in southwest Mongolia.
A highlight of results from the first six of 15 drill holes was 7 metres @ 27.5 grams/tonne gold, including 1 metre @ 187 grams/tonne.
There were five zones of high-grade gold mineralization intersected within broad, low-grade zones with visible gold observed in multiple intervals. Five of the six holes returned greater than 7 grams/tonne gold over 1 to 2 metre intervals.
Seven, sub-parallel mineralized zones were intersected within 30 metres of the surface. Mineralized zones remain open along strike and at depth.
Erdene says that visible gold was observed in step-out holes at Gold Hill and Striker Zones with assays still pending.
The maiden drill program commenced on November 8, 2015 and consisted of 15, angled diamond drill holes, totalling 695 metres. Drill hole depth ranged from 34 metres to 70 metres with maximum vertical depth tested of approximately 50 metres.
The program was targeting the southwest portion of the Bayan Khundii trend, a 550 metre by 300 metre area, where previous exploration work completed by Erdene in the September quarter returned highly anomalous gold values from surface sampling and from initial trenching, including 30 metres @ 2.7 grams/tonne in one trench and 1 metre @ 55.6 grams/tonne in another.
The company completed a geophysical program over the Bayan Khundii prospect that indicates the mineralization is at the apex of broad chargeability and resistivity high anomalies.
“With high-grade gold, in multiple structures, identified at surface and now confirmed through drill intersections at shallow depths, Bayan Khundii continues to emerge as a very promising new gold discovery,” said Erdene’s president and CEO Peter Akerley. “Pending drill results will provide initial indications of continuity from the two most prominent prospects, Gold Hill and Striker.”
Additional exploration of this high-grade gold discovery is in the planning stage and is expected to include a second phase of diamond drilling in addition to metallurgical testing during the first half of 2016.
Meantime, ASX-listed Tian Poh Resources has elected not to exercise its option to acquire an interest in Erdene’s Zuun Mod mining licence in southwest Mongolia after completing a due diligence program. Under the terms of an agreement, the US$200,000 convertible debenture purchased by Tian Poh will be converted into shares of Erdene at Can$0.14 per share. Erdene says that it looks forward to continuing to investigate opportunities to work together with Tian Poh in Mongolia.