Erdene Commences 18,000 Metre Drill Program at the Khundii Gold District - Seite 2

“We are very excited to initiate a major drill program in the Khundii Gold District, following up on the outstanding near-surface, high-grade gold intersections reported earlier in Q3,” said Peter Akerley, Erdene’s President and CEO. “Our recent financing, led by Eric Sprott, provides us with the resources to advance our Bayan Khundii Gold Project towards development and to aggressively explore the broader Khundii Gold District, which offers tremendous discovery potential as demonstrated by our high-grade gold discoveries to date.”

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¹ Previous results in this release are stating apparent thicknesses

“An 18,000 metre drill program is planned to be completed before year-end, with drilling now underway at Bayan Khundii and a second drill rig scheduled to arrive at Dark Horse next week,” continued Mr. Akerley. “The program is designed to test new areas in the district, add additional resources adjacent to current deposits and increase confidence in current resource areas, potentially adding to existing reserves at Bayan Khundii.”

Drilling Highlights & Plans

[See plan view maps below]

The Khundii Gold District provides a multitude of exploration and development opportunities beyond the initial proposed open-pit development at Bayan Khundii. These opportunities include recent near-surface drilling successes and expansion opportunities within the Bayan Khundii deposit area, the new Dark Horse gold discovery and the identification of very high-grade gold in the Discovery Zone at Altan Nar, reported earlier in 2020. A brief overview of the main target areas and planned program is outlined below.

Bayan Khundii Deposit Area

Midfield SE and Striker SW:  Drilling in Q2 2020 discovered very high grade, near-surface gold zones in both Midfield SE and Striker SW. Midfield SE intersections included 5.5 metres of 125.9 g/t gold, including 1 metre of 581.6 g/t gold in BKD-288, beginning 11.5 metres downhole, and 15 metres of 25.6 g/t gold including 1 metre of 338 g/t gold beginning at 14.9 metres downhole in BKD-274, located 40 metres north of BKD-288. In total, 16 of 18 holes drilled at Midfield SE in Q2 2020 intersected anomalous gold (≥0.2 g/t) mineralization within 25 metres of surface. This discovery is interpreted as the intersection of the stacked NW trending quartz adularia veins, with a N-S trending conceptual feeder structure. The Midfield SE structure has been traced over a strike length of at least 200 metres with Q2 drill testing only the northern 50 metres. The Phase I drill program will target this conceptual feeder structure’s southeast continuation which remains largely untested. As this area was classified as waste or low-grade stockpile material in the current resource, it has the potential to have a significant impact early in the project mine life. The possibility of parallel en-echelon features is demonstrated by another outlier of high-grade gold in BKD-118 which intersected 1 metre of 159 g/t gold located 200 metres east of Midfield SE and outside of the proposed pit.