Erdene Adds Second Rig and Commences Drilling Ulaan Gold Target Adjacent Bayan Khundii Gold Deposit

HALIFAX, Nova Scotia, June 17, 2021 (GLOBE NEWSWIRE) -- Erdene Resource Development Corporation (TSX: ERD | MSE: ERDN) (“Erdene” or the “Company”) is pleased to report the commencement of drilling on the Ulaan Gold Target, located 350 metres west of the Bayan Khundii Gold deposit. 

Quotes from the Company:

“We are excited to test the potential of the southern portion of the Ulaan license area following the acquisition of 100% of the property in late 2020,” said Peter Akerley, Erdene’s President and CEO. “This license, adjacent our Bayan Khundii Project, is part of the broader Ulaan-Khundii alteration system. Based on the trend of mineralization from the Bayan Khundii gold deposit, supporting surface alteration and anomalous geochemical survey test results, we believe there is a high probability that the mineralization defined at Bayan Khundii continues onto the Ulaan License. We expect to report initial drill results from the Ulaan exploration drilling in mid Q3 2021.”

Ulaan Target Overview and Drill Program Plans

Following the discovery of the Company’s 100%-owned Bayan Khundii gold deposit in 2015, the Company initiated a land consolidation effort leading to the acquisition of a 51% interest in the adjacent Ulaan license in 2017. The remaining 49% interest in the Ulaan license was acquired in December 2020.

The northern portion of the 1,780 hectare Ulaan license is situated along the western boundary of Erdene’s Khundii license. The southern area of the Ulaan license is approximately 350 metres west of the Bayan Khundii gold deposit, separated by the Khuren Tsav license held by the Mongolian government-owned gold company, Erdenes Alt LLC (EA). (See appendices).

Based on Erdene’s drilling near the western Khundii license boundary, satellite imagery, geophysical analysis and surface alteration, the hydrothermal system that hosts the Bayan Khundii gold deposit is expected to extend W-SW of the Bayan Khundii deposit across the Khuren Tsav license and along the southern boundary of the Ulaan license. Drilling results along the western boundary of Khundii license intersected thick sequences of gold mineralization, locally beginning at surface, with highest grades at 100 to 160 metres depth. Highlight intersections from drilling near the border include 7 metres of 18 g/t gold in BKD-220; 5 metres of 25 g/t gold in BKD-265; and 28 metres of 2.4 g/t gold in BKD-334, the latter of which is located to the north of and outside the reported resource at Bayan Khundii.