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Erdene discovered Bayan Khundii during a regional reconnaissance program in Q3-2015, where 20% of the initial rock chip/grab samples returned values in excess of 3.0 g/t gold (up to 4380 g/t gold). Erdene’s first drill hole in Q4 2015 returned 7 metres of 27 g/t gold at 14 metres depth, with subsequent drilling confirming continuous, high-grade mineralization that remains open in all directions. Since Q4-2015, Erdene has completed 96 diamond drill holes (average vertical depth of 90 metres), with highlights including:
Bayan Khundii has rapidly become Erdene’s highest priority project, based on its very high grades, excellent metallurgy, wide zones extending from surface, and size potential.
The project is located within the Tian Shan Copper-Gold Belt in southwest Mongolia approximately 200 km from the Chinese border city of Ceke, the main rail crossing between Mongolia and China in the region.
Bayan Khundii is a 1.7 km long, low-sulphidation epithermal gold system, hosted within a zone of intensely silicified and sericitized Devonian volcanic units overlain in part by younger Cretaceous and Quaternary units. The host volcanic units contain variable quartz-adularia and stockwork veining, with visible gold identified in several drill holes as irregular-shaped grains up to 2mm, associated with quartz veins and/or hematite within, or along, the boundary of quartz-hematite veins and veinlets.
Strong induced polarization resistivity response at depth beneath the Cretaceous units suggests that Bayan Khundii’s epithermal system may be more widespread than the main exposed areas at surface, where much of the drilling has focused. Recent step-out drilling completed in Oct 2016 (targeting a geophysical anomaly) discovered a new gold zone, under Cretaceous cover, 170 m north of the main mineralized zone, where hole BKD-60 returned 68 m of 2.0 g/t gold from 24 to 92 m depth. Additionally, several rock samples collected up to 1.4 km north of the main zone have returned anomalous gold values, including up to 6.9 g/t gold.
TAn initial metallurgical study in 2016 indicated 99% recovery (gravity followed by cyanide leach of the tails) in a high-grade (24.9 g/t gold) composite, and 92% recovery from a low-grade (0.7 g/t gold) composite.
Moving forward, Erdene’s on-going drill program at Bayan Khundii will continue to focus on expansion and perimeter holes in order to establish potential boundaries to the gold system in advance of a substantial resource drilling program in 2017.
See sidebar for plan maps and cross-sections.
See the Company's press release section and corporate presentation section for the latest updates on drilling and plans at Bayan Khundii.