Mongolia gold play Erdene Resource Development Corp. has announced the discovery of bonanza-grade gold in rock chip and grab samples south of its flagship Altan Nar project.
Highlights at the new discovery, Bayan Khundii (Rich Valley), include:
- Multiple high-grade rock chip samples (4 to 4,380 g/t gold) collected from multiple mineralized zones over a 1.4 km area;
- Visible gold observed in numerous locations with no significant sulfide material present;
- Trenching confirmed lower-grade gold mineralization (0.1 g/t to 1.0 g/t Au) in host rocks, over significant widths (up to 30 m), hosting the significantly higher-grade vein material;
- Trenching identified four separate zones, 10 to 30 m wide, averaging 2.3 to 2.9 g/t gold over a 300 m strike area;
- Trenching returned values up to 55 g/t gold over 1 m.
“We are very excited by our new discovery in this emerging gold district in southwest Mongolia. What sets this discovery apart from our other projects in the area is the bonanza gold grades, the multiple broad mineralized zones, and the free-gold, low sulphide nature of the mineralization, all of which enhance the potential economics of the project,” said Peter Akerley, Erdene’s President and CEO. “We are now developing plans for accelerated exploration of this exciting new discovery as part of our southwest Mongolia gold development program led by our Altan Nar gold-polymetallic project.”
Erdene shares were riding the positive results, last up about 30% (4 cents) to 15.5 cents.
Erdene’s flagship project, Altan Nar, is a 5.6-kilometre mineralized trend located about 15 km north of Bayan Khundii in southwestern Mongolia.
In Q1 Erdene published an initial resource estimate on the near-surface portions of two of 18 targets at Altan Nar. That resource consists of 147,000 ounces Indicated at 2.5 g/t AuEq and 102,000 oz Inferred at 2.1 g/t AuEq at a 1 g/t AuEq cut-off.
Erdene president and CEO Peter Akerley will be presenting at 11:30 a.m. Thursday at the Subscriber Investment Summit at the Pan Pacific in downtown Vancouver. Here’s the full agenda.
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