Erdene starts resource drilling at Altan Nar project in Mongolia

16 November 2014 (Last Updated November 16th, 2014 18:30)

Erdene Resource Development has begun resource definition drilling programme at its wholly owned Altan Nar gold-polymetallic project in the Tien Shan Gold Belt of south-west Mongolia.

Erdene Resource Development has begun resource definition drilling programme at its wholly owned Altan Nar gold-polymetallic project in the Tien Shan Gold Belt of south-west Mongolia.

The drill programme aims to establish a near-surface, National Instrument (NI) 43-101-compliant resource estimate at the two most advanced target areas within the 5.6km Altan Nar trend.

RungePincockMinarco will carry out the mineral resource estimate, including an initial review of existing data and current drill programme.

A total of $778,239 had been raised by the company in November by closing its non-brokered private placement and from the exercise of warrants.

"The discovery at Altan Nar, with its high-grade zones, size potential and location, provides an opportunity with the flexibility to move rapidly towards a small-scale start-up." 

Erdene president and CEO Peter Akerley said: "We believe the discovery at Altan Nar, with its high-grade zones, size potential and location, provides an opportunity with the flexibility to move rapidly towards a small-scale start-up and ultimately towards a very large gold, silver, zinc and lead development on the border with China.

"The current drilling and independent resource estimate is serving both of these routes, initially by establishing a high confidence open pitable resource which we can build development plans around, but also being demonstrative of the greater potential as it represents only a small portion of the project area.

"We are looking forward to a steady flow of drill results throughout the winter months as we advance this project towards its maiden resource estimate."

The resource drilling programme will target two heavily mineralised zones, Discovery Zone and Union North, which are expected to hold high-grade and near-surface mineralised systems.

Erdene plans to complete approximately 1,700m of drilling by mid-December, focusing on extending the high-grade, near-surface mineralised zones, and to provide sufficient data to calculate a NI 43-101-compliant mineral resource at both target areas that is amenable to open pit mining.