In June 2011, Erdene released an updated National Instrument 43-101 compliant resource estimate for the Company’s Zuun Mod Molybdenum Project in Mongolia. The Zuun Mod molybdenum deposit has a measured and indicated resource of 218 million metric tonnes (“Mt”) at an average grade of 0.057% molybdenum (“Mo”) and 0.069% copper (“Cu”), at a 0.04% Mo cut off grade. This equates to 273.5 million pounds of contained Mo metal and 330.7 million pounds of contained Cu metal. In addition, Zuun Mod has an Inferred Resource of 168 Mt averaging 0.052% molybdenum and 0.065% copper. This makes Zuun Mod one of the largest undeveloped molybdenum-copper deposits in the Asia region and shows that the Zuun Mod deposit is comparable to other porphyry molybdenum projects currently in production or under development world-wide.
With the completion of the new Zuun Mod resource estimate, the Company’s independent technical consultants, Minarco-MineConsult of Australia, are now conducting pit optimization and scheduling studies to combine with the previously completed work under a preliminary assessment level study initiated in 2008. Following completion of this work, it is anticipated that the information will be used to create a financial model on which to base decisions regarding the advancement of the project to the pre-feasibility stage.
In 2010, the Zuun Mod molybdenum-copper deposit was officially registered by the Mongolian Minerals Resource Council, a prerequisite for applying for a mining license. In March 2011, the Corporation applied for two Mining Licenses for Zuun Mod property. In May, 2011, the larger of the two Mining Licenses was granted by the Mongolian Government. The Zuun Mod Mining License covers an area of 6,041 hectares and contains the South Racetrack and North Racetrack deposits, which hosts all of the Measured and Indicated resources at Zuun Mod. The Mining License is valid for an initial 30-year term with provision to renew the license for two additional 20-year terms.
Located within 200 kilometres of China’s border in Mongolia’s Bayankhongor Province, the Zuun Mod porphyry complex measures 12 kilometres in circumference and hosts broad zones of molybdenum mineralization. In a three-kilometre long portion of the system, referred to as the South Corridor, Erdene identified three mineralized zones known as the Racetrack North (“RTN”), Racetrack South (“RTS”) and the Stockwork zones. Initial drilling of these zones intersected thick intervals of significant mineralization proximal to surface and open at depth.
In June 2011, Erdene received an updated National Instrument 43-101 compliant resource for the project from Minarco MineConsult of Sydney Australia. The June 2011 Zuun Mod resource report can be viewed by clicking here.
Zuun Mod Resource Table
Cut-off Grade Mo% |
Resource Category |
Resources Mt |
Mo% |
Contained Mo Metal Mlbs |
Cu% |
Contained
Cu Metal
Mlbs |
||
0.03% |
Measured |
55 |
0.050 |
61.1 |
0.060 |
73 |
||
Indicated |
260 |
0.050 |
287 |
0.065 |
373.6 |
|||
M&I |
315 |
0.050 |
348.1 |
0.064 |
446.6 |
|||
Inferred |
335 |
0.043 |
318.8 |
0.061 |
454.6 |
|||
0.04% |
Measured |
40 |
0.056 |
49.5 |
0.064 |
57 |
||
Indicated |
178 |
0.057 |
224 |
0.070 |
273.7 |
|||
M&I |
218 |
0.057 |
273.5 |
0.069 |
330.7 |
|||
Inferred |
168 |
0.052 |
191.8 |
0.065 |
240.5 |
|||
0.05% |
Measured |
25 |
0.063 |
34.5 |
0.068 |
37.5 |
||
Indicated |
105 |
0.066 |
152.5 |
0.074 |
171 |
|||
M&I |
130 |
0.065 |
187 |
0.073 |
208.5 |
|||
Inferred |
78 |
0.060 |
103.4 |
0.067 |
115.5 |
|||
Minarco MineConsult Resources Estimate Notes:
Effective Date: May 2011.
tonne = 2204.64 lbs.
Mineral resource estimates are not precise calculations.
Estimates are rounded to appropriate significant figures.
M&I means the sum of Measured and Indicated Resources.
Contained Metal for Ore Reserves will be less due to application of modifying factors.
Grade modeling using ordinary kriging methodology within resource wireframes based on geology and veining intensity as well as variable cut off grades.
The Mineral Resource estimate was prepared under the supervision and based on information compiled by Philippe Baudry, who is an employee of Minarco-MineConsult. Philippe Baudry is a Qualified Person within the meaning of such term under NI 43-101.
Zuun Mod sits on the doorstep of China, a country predicted to be responsible for half of the world’s steel production by 2025. This will require a significant increase in the importation of several commodities, including molybdenum. With prices and demand strengthening and with Chinese companies seeking molybdenum resources globally, we are very optimistic that our Zuun Mod project will command the attention of those interested in a long term supply of molybdenum for the region.
