Erdene Resource Development is out with results from 6 of 15 holes recently drilled as part of a maiden 695-metre program at the Bayan Khundii gold discovery in southwest Mongolia, and they look good.
The program identified five zones of near-surface high-grade gold mineralization that are open along strike and at depth. Five of the six holes returned intervals of greater than 7 g/t Au over 1 to 2-metre intervals.
The best hole was BKD-01, which hit 1 metre of 187 g/t Au within a 7m intercept of 27.5 g/t within 16 metres of surface. Other significant intervals included 14 metres at 1.1 g/t Au, 15 metres at 2.0 g/t Au and 17 metres at 1.2 g/t. Each of these intercepts occurred within 25 metres of surface.
“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,” stated Peter Akerley, Erdene’s president and CEO. “Pending drill results will provide initial indications of continuity from the two most prominent prospects, Gold Hill and Striker.”
The program consisted of 15 angled diamond drill holes to a vertical depth of about 50 metres in a 550 by 300-metre area where soil sampling and trenching returned highly anomolous gold values.
The company is planning an additional exploration program, including a second phase of drilling and metallurgical work, for the first half of 2016.
Bayan Khundii is about 20 km south of Erdene’s flagship Altan Nar gold project.
Disclosure: Author owns Erdene shares (purchased in the public market) and Erdene is a CEO.CA sponsor, which makes us biased. Article is presented for informational purposes only and should not be considered investment advice. Please consult a licensed investment advisor and do your own due diligence.