HALIFAX, NOVA SCOTIA -- (Marketwired) -- 04/03/13 -- Erdene Resource Development Corp. ("Erdene" or "Company") (TSX: ERD), today provided a review of the 2012 activities on the Company's principal projects in conjunction with the release of its year-end financial results.
2012 Quarterly Highlights
- First Quarter
-- High Grade, Near Surface Gold Discovery at Altan Nar; 29m of 4.3 g/t Gold
-- Granite Hill Quarry Commenced Production
-- Erdene Board Strengthened
- Second Quarter
-- Finalized Sale of Granite Hill Quarry for US$3.35 million
-- Reported Xstrata's Intent to Sell Their Interest in Donkin Coal Project
-- Expanded Size of Altan Nar Gold Discovery Through Drilling
-- Announced Planned Restructuring of Company
- Third Quarter
-- Secured Second Mining License for Zuun Mod-Khuvyn Khar Project
-- Announced Planned CEO and Board for Newco - Morien Resources Corp.
-- Completed Regional Metals and Coal Exploration in Mongolia
- Fourth Quarter
-- Sold Operating Kaolin Assets of Controlled Subsidiary for $923,000
-- Intersected 47m of 1.3 g/t Gold on 1.3km Step-Out Drill Hole at Altan Nar
-- Completed Restructuring with Separation of Mongolian and North American Assets
-- Completed Private Placement, limited to $1 million at $0.17 per share
Altan Nar Gold Project
The Altan Nar gold discovery was made in late 2011 following a large regional exploration program carried out by Erdene's technical team. Initial drill results from Altan Nar included 55 metres of 1.02 g/t gold and 12 g/t silver and follow up drilling intersected 29 metres averaging 4.3 g/t gold and 24.1 g/t silver, including 11 metres of 9.1 g/t gold and 22.7 g/t silver. The 2011 drilling confirmed the presence of near-surface gold-silver mineralization over a strike length of 300 metres, with widths up to 125 metres. This area is referred to as the Discovery Zone ("DZ").
Exploration work in 2012 expanded the DZ to 400 metres in strike length with near-surface holes in the northern portion returning 27 metres of 1.78 g/t gold, including 8 metres of 4.5 g/t gold and 25.4 g/t silver, and high grade gold mineralized zones at depth with 4 metres of 10.5 g/t gold and 55.5 g/t silver. The most northerly hole in the DZ returned 94 metres of 0.45 g/t gold and includes a 4.5 metre interval at the bottom of the hole averaging 2.4 g/t gold, 18.8 g/t silver, 2.80% lead and 0.86% zinc. The potential for higher grade zones at depth within the DZ was further supported by the project's deepest hole to date (approximately 191 metre vertical depth) which ended in 5 metres of 4.77 g/t gold, 6.0 g/t silver 0.52% lead and 0.59% zinc. These results confirm that the gold mineralization within the DZ is open to the north and continues to the depths tested and additional drilling will be required to determine the true vertical extent of the gold mineralization.
Reconnaissance drilling outside the DZ identified multiple new targets over a 3 kilometre strike length, including a substantial new gold-polymetallic zone intersected within 50 metres of surface, located 1.3 kilometres northwest of the DZ. Multiple high grade gold zones separated by post-mineralization dykes which, when included in the overall assay results, yielded an average grade of 1.3 g/t gold over 47 metres, including 4.4 g/t gold over 9 metres.
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