Erdene Resource Development Corporation press release
Erdene Updates Mongolian Exploration Programs
TSX - Toronto Stock Exchange · Gold · Silver · Lead · Zinc · Molybdenum · Antimony · Copper · Canada
Drilling Under Way or Planned on Three Porphyry Copper-Gold and Molybdenum-Copper Targets
HALIFAX, June 9 /CNW/ - Erdene Gold Inc. (TSXV:ERD) today provided an update on three of its current exploration programs in Mongolia focused on porphyry copper-gold and porphyry molybdenum-copper targets.
Temuujin Porphyry Copper Gold Project
In early June, a 'TITAN-24 Deep Earth Imaging System' survey was completed over the Temuujin II porphyry copper-gold prospect. Titan is a state- of-the-art geophysical system developed and operated by Quantec Geosciences Inc. of Canada. This system offers the potential to identify mineral anomalies at depths ranging from near surface to greater than 1,000 metres below the earth's surface. The survey was successful in identifying an Induced Polarization (IP) anomaly that distinctly intensifies below the two holes drilled at Temuujin II. This has been interpreted as confirmation of an increase in the intensity of mineralization with depth. According to Quantec's geophysicist, the extent and amplitude of the interpreted IP zones are significant in terms of exploration for a deep porphyry copper target, based on similar results which have been obtained over existing porphyry copper deposits in Mongolia. Given these encouraging results, Erdene has committed to test this anomaly with deep drilling when a drill rig capable of drilling to the targeted depths becomes available. Erdene's 2004 drilling program confirmed a porphyry-related deposit environment, particularly at Temuujin II. Two holes were drilled 600 metres apart at Temuujin II, both of which intersected porphyry-related alteration and mineralization, including anomalous copper, gold, silver and zinc values. Alteration increased in the system at depth accompanied by increased copper- gold values, particularly in drill hole TDD-02 drilled to a depth of 540 meters. The alteration and mineralization encountered is typical of the upper portion of a zoned porphyry system. The Temuujin project is situated within the inferred northeast continuation of the island-arc environment which hosts significant copper-gold porphyry mineral deposits, including the world-class Hugo deposit at Oyu Tolgoi. Erdene's exploration to date has focused on the 20 kilometre by 8 kilometre Temuujin district in the northeast part of the 95 kilometre long Virgin claim block.
Zuun Mod Porphyry Molybdenum-Copper Project
A recently completed Phase I diamond drilling program at the Zuun Mod porphyry molybdenum-copper project included nine holes totaling 2,672.8 metres. Final assay results are pending receipt of additional reports from SGS Laboratories and a final report on the Quality Control and Analysis program. However, visual results have confirmed the presence of moderate molybdenum mineralization in drill core from the southeast portion of the property where previous drilling (hole KKMD-03) had encountered significant molybdenum mineralization. Based on the Phase I program, drilling will resume at Zuun Mod, in July 2005 with closer spaced drilling to further delineate the molybdenum targets in the southeast and to define the shape of the main mineralized micro-granodiorite body at depth. Previous exploration of the Zuun Mod prospect outlined potentially ore grade molybdenum-copper-rhenium mineralization in the southeast portion of the property. Drill hole KKMD-03 returned high (greater than 0.08%) molybdenum grades over a thickness of 90 metres included within a much broader zone of moderate grade (0.04% to 0.08%) molybdenum mineralization tolling 236 metres. Moderate molybdenum grades were also reported in two widely spaced holes in the area with zones range from 32 metres to 114 metres. This area is a portion of a much larger 20 square kilometer hydrothermal alteration and mineralization system with distinct molybdenum-copper zones surrounded by large areas of 2% to 5% disseminated and veinlet pyrite. The Zuun Mod property is located less than 200 kilometres from the Chinese border in southwestern Mongolia, where rail and high voltage power generation facilities are being constructed to service the Jiaguan Iron and Steel complex located in China's Gansu Province. The facilities are being built to source raw materials from Mongolia's Gobi desert region.
Ikh Tal - Erdenet West Porphyry Copper Molybdenum Project
Drilling commenced today on the Ikh Tal - Erdenet West prospect with an initial three-hole drilling program totaling approximately 1,000 metres. The drilling program is targeting near-surface coincident IP chargeability and resistivity anomalies, approximately 1.5 kilometres long by 0.5 kilometres wide, along an east-west trend in an area where previous satellite imagery and surface geochemistry returned anomalous values. The target area has been further strengthened by an IP dipole-dipole survey that has outlined coincident chargeability and resistivity anomalies, which indicate the surface geophysical signatures extend to depth. The drilling program will test these anomalies and is expected to take several weeks As announced on June 7, Erdene has entered into an exploration agreement with Erdenet Mining Corporation (EMC) to explore for porphyry copper- molybdenum deposits adjacent to their existing mine with a view to negotiating a formal joint venture agreement within the next 90 days. Erdene controls a significant land position immediately surrounding the EMC deposit, the second- largest porphyry copper deposit in Central Asia and one of the world's largest producing copper mines.
Qualified Person
This press release has been prepared under the supervision of Michael Corey, P.Geo., who serves as the qualified person under National Instrument 43- 101. All samples are assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to SGS Laboratory internal checks, Erdene Gold incorporates a QA/QC sample protocol utilizing prepared standards, sample splits and duplicates.
About Erdene Gold Inc.
Erdene Gold Inc. is a mineral exploration company focused on Mongolia with over 20 precious and base metal projects that include 47 licences covering in excess of 840,000 hectares, as well as 19 uranium licences and applications covering more than 1.3 million hectares. Erdene is well funded with a current working capital position of approximately $6.6 million. Erdene has 26,232,135 common shares issued and outstanding and a fully diluted share position of 30,928,910 common shares. Erdene Gold Inc. trades on the TSX Venture Exchange under the symbol ERD.
Forward-Looking Statements
Certain information regarding the Company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date. Erdene disclaims any intention to update or revise this statement of forward-looking information, whether as a result of new information, future events or otherwise.
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