Erdene Resource Development Corp intends to issue, by way of a non-brokered private placement, up to 11.5 million units for gross proceeds of up to $1.61 million.
Net proceeds of the private placement will be used for exploration, including a resource drilling program, on the company’s 100%-owned Altan Nar gold-polymetallic project, expected to commence shortly. The private placement is expected to close on or before October 31.
Drilling carried out in the second quarter of 2014 returned high-grade, near-surface intersections from both the Discovery Zone and Union North, the two most advanced target areas within the 5.5km trend at Altan Nar, now host to 18 target areas.
At the Discovery Zone, multiple, thick gold-polymetallic intersections returned results ranging up to 17.7 grams/tonne gold over 5 metres, within 19 metres of 5.8 grams/tonne gold, 37 grams/tonne silver and 2.6% combined lead and zinc, within 60 metres of surface.
At Union North, 1.3km northwest of the Discovery Zone, multiple, near-surface gold-polymetallic zones have been intersected, including 14 metres of 3.9 grams/tonne gold equivalent, and 40 metres south of that hole, 12 metres of 5.3 grams/tonne gold equivalent. Drilling within these two target areas has established both vertical and lateral continuity of mineralization.
The primary objective of the fourth quarter program is to carry out delineation drilling designed to establish an initial, independently verified, near-surface, open pit mineable resource at both the Discovery Zone and Union North. Approximately 900 metres of drilling is planned for the Discovery Zone and 800 metres for Union North.
The secondary objective is to increase confidence in the remaining 16 priority target areas within the Altan Nar trend with approximately 1300 metres of drilling.