Erdene Resource Development Corporation press release
Erdene Intersects 49 Metre Coal Seam near Rail to China
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HALIFAX, Dec. 14 /CNW/ - Erdene Gold Inc. (TSX:ERD) today announced that it has intersected a 49 metre thick coal seam at the Company's Galshar coal project located in southeastern Mongolia, 65 kilometres east of a short-line railway with direct access to the Trans-Mongolian Railway into China. Erdene has been carrying out a comprehensive evaluation of coal opportunities in Mongolia utilizing its proprietary mineral occurrence and geographic information system (G.I.S.) databases. "We are excited by the early results and look forward to continuing to define the resource potential at Galshar and expanding our energy base," said Peter Akerley, President and CEO. "During the past year our company has been evaluating opportunities in Mongolia that are anticipated to benefit from the surging power demands of China, including uranium and coal resources. China's shortage of bulk mineable, open pit coal deposits providing safe, low-cost thermal coal continues to fuel interest in Mongolian coal opportunities, where location relative to rail is a key economic consideration." Erdene's initial drilling of the Galshar coal project intersected a 49 metre coal seam in the central part of an area where previous drilling intersected coal seams over a three kilometer strike length that is open to the northeast. Erdene's property covers most of this area and surrounds an open pit coal mine which supplies coal to local towns. The initial Erdene hole (CDD-01) was collared approximately 300 metres northwest of the existing mine. Hole CDD-01 intersected coal mixed with shale and clay beginning at 25 metres with continuous coal from 54 metres through 103 metres. The vertical hole was terminated at 107 metres in mixed coal and clay-rich sediments. Visual determinations suggest the quality of the coal varies from black, low to medium luster coal, to massive brown coal, over intervals ranging from 1 to 14 metres. Historical testing, as well as results from recent Erdene grab samples taken from the operating mine, indicate an average heating value of 5900 kcal/kg (10,600 BTU/lb). The coal seam is hosted in a northeast trending basin open to the northeast and bounded to the southwest by a fault which is interpreted to have shifted the coal seam to a depth greater than 100 metres. This interpretation is supported by a second hole (CDD-02), collared 550 metres southeast of CDD-01, drilled to 91.3 metres, that failed to intersect any significant coal. Previous drilling indicates that the coal beds in the Galshar coal project area are relatively flat lying with coal seam thicknesses of 5 to 30 metres over a strike length of three kilometres. Quality analysis and evaluation is now underway to determine the thermal properties of the Galshar coal and the potential for the project to support domestic and export coal markets. A compilation map and images of the coal mine can be viewed on the Erdene website at www.erdene.com. In addition to the Galshar coal project, Erdene has been carrying out a regional coal evaluation program throughout 2005 utilizing its extensive mineral occurrence database that contains geologic information and exploration data for over 240 coal occurrences. The Company has identified multiple targets which are now being evaluated for potential acquisition. The Company's energy related property interests, including its coal and uranium assets, are held in the Company's wholly-owned energy subsidiary in Mongolia, Erdene Energy XXK.
TSX Listing Erdene Gold Inc. today began trading its Common Shares on the Toronto Stock Exchange ("TSX"). The company's shares will continue to trade under the symbol "ERD".
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 diversified mineral exploration company focused on Mongolia with over 20 mineral exploration projects that include 71 licenses and cover approximately four million acres. Significant projects include the Zuun Mod molybdenum-copper project, the Central Basin Uranium Projects (International Uranium Corporation Joint Venture), the Ikh Tal-Erdenet Mine copper exploration program where high priority targets have been identified adjacent to Mongolia's largest mining complex, the Tsenkher Gol Gold project targeting a granite hosted disseminated gold target, the Galshar coal program, where programs are underway to determine coal quality and thickness and the Temuujin copper-gold porphyry project in the South Gobi Mineral Belt. Erdene is well funded with a working capital position of approximately $5.7 million as of September 30th, 2005. Erdene has 27,269,635 common shares issued and outstanding and a fully diluted share position of 32,188,910 common shares.
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.
For additional information visit Erdene's website at www.erdene.com or contact the company via email at info(at)erdene.com.
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