Stock Exchange Listing: TSX:ERD
Market Cap: C$130 million
Project Status: Explorer
Erdene Resource Development (TSX:ERD) is focused on advancing its current portfolio of 100%-owned gold projects within a newly discovered, 20 km long district in southwest Mongolia. Separate from its gold projects, Erdene is also active through an Alliance with Teck Resources, Canada’s largest diversified mining company, in assessing regional base and precious metal opportunities in southwest Mongolia’s prolific Tian Shan copper-gold belt.
Erdene’s flagship project, Bayan Khundii, was discovered in mid 2015 during a regional exploration program, where 20% of the initial surface rock samples returned values in excess of 3.0 g/t gold (up to 4380 g/t gold). Since the first drill hole in Q4 2015, the project has rapidly become Erdene’s highest priority project, based on its very high grades, excellent metallurgy, wide zones extending from surface, and size potential. Of the 96 holes completed 95 have intersected anomalous gold mineralization, and 30% have ended in mineralization. Drill highlights include 65 m of 6.3 g/t gold starting at 71 m (BKD-77).
Bayan Khundii’s mineralized footprint was greatly expanded in Q4 2016 when the Company discovered a new gold zone in step-out drilling under younger, post-mineralization cover to the northeast of the main mineralized area. The new discovery (Midfield Zone) returned some of the highest grades and the longest mineralized intervals intersected to date, including 72 m of 4.0 g/t gold starting at 108 m (BKD-92). Geophysics suggest an extensive zone of alteration continues at depth to the north and west of Midfield, suggesting the epithermal system could have considerable size potential.
Erdene will re-commence drilling in early Q2 2017, with the dual objective of defining at a higher confidence, gold mineralization within the main gold zones, while drilling expansion and perimeter holes throughout the 1.7 km trend in order to establish potential boundaries to the gold system in advance of a more detailed resource drilling program, and maiden resource estimate.
Plans & Latest Developments:
In Q1 2017, Erdene closed private placement financings for total gross proceeds of $14.3 million, providing the financial capacity to significantly advance the Company’s promising gold projects in southwest Mongolia. 2017 should be a transformative year for the Company, as it proves up the size potential of Bayan Khundii and moves it toward a maiden resource estimate, while continuing to build up the district-scale potential at neighboring gold projects. Drilling is set to re-commence in April 2017, with steady news flow through Q3.
- Peter C. Akerley (President, CEO)
- Dr. Anna G Biolik
- William B. Burton
- John P. Byrne
- J.C. (Chris) Cowan (Chairman)
- T. Layton Croft
- Ken W. MacDonald (CFO)
- David V. Mosher
- Philip L. Webster
- Peter C. Akerley – President and CEO
- Ken W. MacDonald – CFO
- Michael MacDonald – Vice President Exploration
- Michael X. Gillis – Vice President Operations
- Michael A. O’Keefe – Director of Finance
- Dawson C. Brisco – Vice President Corporate Development
- Institutional – 27%
- Erdene management/directors – 11%
- Teck Resources – 9%
- Sandstorm Gold – 3.5%
Why should investors invest in you?
There are several indications that Erdene has a very good, possibly major, new gold discovery in southwest Mongolia, one close to surface, open for expansion, and with very high grades over large widths. Bayan Khundii is one of the industry’s top gold discoveries and in 2017 will be moving toward a maiden resource estimate. The Company recently closed a $13.8 million bought deal financing, and will be directing funds to proving up size potential at Bayan Khundii, in conjunction with further exploration at its neighboring gold projects within the larger district.