Drilling Commences at Erdene's Zuun Mod Molybdenum Project, Program to Include Drilling of Khuvyn Khar Porphyry Copper Target
HALIFAX, NOVA SCOTIA -- (Marketwire) -- 11/02/10 -- Erdene Resource Development Corp. ('Erdene' or 'Company') (TSX: ERD) today announced that a 4000-metre drilling program will commence this week on molybdenum and copper targets on the Khuvyn Khar Licence, which will include extension and confirmation drilling of Erdene's 100% owned Zuun Mod molybdenum-copper deposit and drilling of untested porphyry copper geophysical targets.
Zuun Mod Drilling
The Zuun Mod drill program is designed to more fully outline the molybdenum-copper resource in areas expected to be initially developed for mining and to expand resources in the higher grade zones in the North Racetrack deposit area. The information derived from this program will be used to define a more extensive prefeasibility drill program designed to upgrade the inferred resources to measured and indicated resource categories. The Zuun Mod deposit currently contains a National Instrument 43-101 compliant resource of 215 million pounds ('Mlbs') of molybdenum in the Measured and Indicated ('M&I') category, grading 0.054% Mo, and a further 208Mlbs in the Inferred category grading 0.051% Mo, making it one of the largest undeveloped molybdenum-copper deposits in the Asia region. Within this envelope of 0.05% Mo mineralization, are higher grade zones averaging approximately 0.07% Mo totalling 69Mlbs of molybdenum in the M&I category and 44Mlbs of molybdenum in the Inferred category with similar copper grades.
In the south-eastern portion of the North Racetrack Deposit, drilling will test areas adjacent to a target that previously returned 412 metres averaging 0.061% Mo and 0.067% Cu beginning at 38 metres. This hole remains open at depth and to the southeast and is untested for approximately 300 metres to the west. Two high-grade zones within this hole include a 66 metre intercept grading 0.10% Mo and 0.10% Cu beginning at 212 metres and a second 58 metre intercept starting at 338 metres that returned 0.12% Mo and 0.08% Cu. These two zones are within a 244 metre intercept from 206 to 450 metres (end of hole) that averaged 0.079% Mo and 0.076% Cu.
In addition to the drilling program, other Zuun Mod projects are underway including engineering studies, hyrdro-geologic drilling to identify the source for process water and a CSAMT (Controlled Source Audio-frequency Magnetotelluric) geophysical survey designed to test for resistive bodies under pediment in the Zuun Mod area. The Company's independent technical consultant, Minarco Mineconsult (Runge), is currently completing Stage II of a pit optimization study to assess various mine scheduling scenarios for a range of production profiles and molybdenum revenue rates. This study is expected to be completed in mid-December and will provide high level production scheduling, a review of operating and capital costs, and economic modelling.
Khuvyn Khar Copper Prospect Drilling (at Zuun Mod)
In 2003, two priority targets were identified on the Khuvyn Khar / Zuun Mod exploration license, one of which evolved into the Zuun Mod molybdenum-copper deposit as a result of exploration by Erdene in the period 2006 to 2009. The second area, the Khuvyn Khar copper target, is located 2.5 kilometres northwest of the Zuun Mod deposit in the northern portion of a 12 kilometre annular feature defined by alteration and geochemical anomalies and referred to as the Zuun Mod porphyry complex. This prospect has received only limited exploration to date. A recently completed study by Wave Geophysics of Colorado has identified several prospective areas that will be tested by drilling in the 4th quarter of 2010.
The Khuvyn Khar copper target measures approximately two kilometres in diameter and is defined by coincident geophysical and copper geochemical anomalies within a zone of moderate to intense porphyry copper-molybdenum related alteration. Previous drilling along the periphery of the newly defined chargeability anomalies has identified significant copper mineralization. Three of the four holes in the area intercepted low-grade copper values (0.1% to 0.2% Cu) associated with intense potassic alteration over intervals of 20 to 172 metres. One drill hole intersected a 12 metre interval that returned 0.30% Cu, 0.02% Mo and 2.2g/t Ag, coincident with the edge of the targeted chargeability anomaly. The Khuvyn Khar prospect remains untested below 250 metres depth and for over one kilometre north of this hole and approximately two kilometres to the southwest where the chargeability anomaly intensifies.
Qualified Person
J.C. (Chris) Cowan, P.Eng. (Ontario) is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release. All samples have been assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared standards, blanks and duplicates.
About Erdene
Erdene Resource Development Corp. is a diversified resource company with multiple projects at various stages of development from exploration to production, all focused on high-growth commodities. Erdene has a current working capital position of approximately $9.8 million, including that of its controlled subsidiary Advanced Primary Minerals Corporation, with 89,230,877 common shares issued and outstanding and a fully diluted position of 93,734,877 common shares.
Forward-Looking Statements
Certain information regarding Erdene 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 Erdene 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. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene 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. Discussion of the various factors that may affect future results is contained in Erdene's Annual Information Form dated March 29, 2010, which is available at www.sedar.com. The 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 and Erdene does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
Contacts:
Erdene Resource Development Corp.
Peter C. Akerley
President and CEO
Erdene Resource Development Corp.
Ken W. MacDonald
Vice President Business Strategy and CFO
902-423-6419
info@erdene.com
www.erdene.com