Erdene Resource Development Corporation (TSX: ERD) has announced a “significant” new gold discovery from maiden drilling at its Ulaan exploration license, 300m west of the Bayan Khundii Gold Deposit in Mongolia, with multiple holes encountering mineralisation.
Key results include:
- Hole UDH-10: 258m @ 0.98 g/t Au from 92 metres; including
- 40m @ 3.77 g/t Au from 92m; including
- 1m @ 39.6 g/t Au from 103m
- 1m @ 58.4 g/t Au from 123m
- 40m @ 3.77 g/t Au from 92m; including
- Hole UDH-07 (50 metres south of UDH-10): 100m @ 0.63 g/t Au, from 85m
Hole UDH-10 ended in gold mineralisation at 350m, with the deepest 20m averaging 0.48 g/t Au. Mineralisation remains open along strike and at depth.
The results add a third development prospect for Erdene within the Khundii-Ulaan alteration system in addition to Bayan Khundii Dark Horse.
“These exceptional results confirm a significant new gold discovery just 300 metres west of the Bayan Khundii gold deposit”
Ulaan maiden drill program
The Ulaan maiden gold drilling program was created to assess the southern part of the licence for similar styles of mineralisation as the Bayan Khundii deposit.
The program comprised seven drill holes totalling 1,543m, with holes spaced between 50 to 450 metres apart, testing targets on an area of approximately 2km² to a maximum depth of 350m.
About the Ulaan exploration license
Erdene owns a 100% interest in the Ulaan license after purchasing an initial 51% stake in 2017 following the discovery of the Bayan Khundii gold deposit, and the remaining 49% in December 2020.
Ulaan is located within Mongolia’s Edren Terrane region, which is home to some of the world’s largest gold and copper-gold deposits, It sits at the southwestern tip of a major alteration zone that stretches for more than 10km. The southern area of the 1,780-hectare Ulaan License is located 350m west of the Bayan Khundii gold deposit.
Management comments
Erdene President and CEO Peter Akerley said: “These exceptional results confirm a significant new gold discovery just 300 metres west of the Bayan Khundii gold deposit. This new discovery at Ulaan, combined with recent high-grade, near-surface, oxide gold intercepts at Dark Horse and the high-grade Bayan Khundii gold deposit demonstrates the existence of a very large gold-bearing hydrothermal alteration system underlying the Khundii and Ulaan licenses.”
Images: Erdene Resource Development Corporation