Erdene gets deeper high-grade gold in expanding epithermal system
Erdene Resource Development outlines new drilling results from its Altan Nar project in Mongolia suggesting higher gold grades at depth.
Posted: Wednesday , 18 Jan 2012
HALIFAX, NS -
For Erdene Resource Development (TSX: ERD) more gold-polymetallic drill intercepts add to the intrigue of its Altan Nar project in Mongolia.
Erdene, intent on investigating an extensive gold-polymetallic anomaly at surface, reported on a handful of additional drillholes from Altan Nar on Wednesday.
Two drillholes stood out in particular. In one, drillhole 19, Erdene hit its broadest high-grade gold intercept yet, cutting 29 metres @ 4.3 g/t gold and 24.1 g/t silver, along with other base metals.
Drillhole 19 was targeted on mineralization about 50 metres below an earlier intercept that had returned 55 metres @ 1.02 g/t Au, including 8 metres @ 3.9 g/t Au fairly near surface. In hitting higher grades with drillhole 19, Erdene now hints at the prospect of an epithermal system with gold-silver grades kicking up at depth.
Ken MacDonald, Erdene chief financial officer and vice-president of business startegy, said drilling confirmed deeper and "increasing gold values" while showing that "the system could in fact be larger than earlier indicated or envisioned."
Adding to hints of a larger gold-bearing system, Erdene also hit a long gold-polymetallic intercept in drillhole 18 that was collared about 300 metres northeast of drillholes 9 and 19. Drillhole 18 returned 125 metres @ 0.35 g/t Au, 3.8 g/t Ag, 0.34 percent lead and 0.34 percent zinc in drillhole 18.
Importantly, the gold mineralization in drillhole 18 looks to be hosted by the same epithermal breccia that Erdene hit in drillholes 19 and 9 to the southwest.
"We think it's part of the exact same system," said Erdene geologist Peter Dalton, basing Erdene's hypothesis on geophysical exploration results, especially magnetics, which are reportedly fairly accurate at Altan Nar.
With the limited number of holes so far drilled on the property, however, Erdene has yet to test for breccia in the 300 metre gulf between, leaving open the question of gold-mineralized continuity therein. Likewise, there is also the question of whether grades continue - or pick up - below drillhole 18.
Dalton would not comment on whether drillholes collared near drillhole 18 had cut breccia based on visual inspection.
MacDonald said Erdene would start to make plans for more drilling once all drill results from an initial 20-hole program at Altan Nar had rolled-in.