Overview

Altan Nar is located 16 km north of the Company’s Bayan Khundii gold deposit.  Bayan Khundii is currently progressing through the Bankable Feasibility Study and permitting. Altan Nar is an intermediate sulphidation, carbonate-base metal gold (“CBMG”) deposit, that remains open at depth and along the known 5.6 km mineralized trend of the system. This deposit type includes prolific gold deposits such as Barrick Gold’s Porgera mine (Papua New Guinea), Rio Tinto’s formerly producing Kelian mine (Indonesia), Lundin’s Fruta Del Norte deposit, and Continental Gold’s Buritica project (Colombia). CBMG deposits generally occur above porphyry intrusions in arc settings and may extend for more than 500 metres vertically.

Only a small portion of the Altan Nar licence has been drill tested and 90% of the NI 43-101 Mineral Resource prepared by RPM Global in 2018 is within 150 metres from surface and largely contained within 2 of the 18 targets with all zones remaining open along strike and at depth.

 

The current resource* based on data collected until May 7, 2018 includes:

 

Indicated Mineral Resource

Quantity

Mt

Au

(g/t)

Ag

(g/t)

Za

(%)

Pb

(%)

AuEq

(g/t)

Au

Koz

Ag

Koz

Zn

Kt

Pb

Kt

AuEq

Koz

5.0

2.0

14.8

0.6

0.6

2.8

317.7

2,349.7

31.6

29.0

453.0

Inferred Mineral Resource

Quantity

Mt

Au

(g/t)

Ag

(g/t)

Za

(%)

Pb

(%)

AuEq

(g/t)

Au

Koz

Ag

Koz

Zn

Kt

Pb

Kt

AuEq3

Koz

3.4

1.7

7.9

0.7

0.7

2.5

185.7

865.8

23.7

22.3

277.1

Notes:

1. The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr. Jeremy Clark who is a full-time employee of RPM and a Member of the Australian Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity that he has undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure.

2. All Mineral Resources figures reported in the table above represent estimates based on drilling completed up to 7th May 2018. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies.

3. *Au Equivalent (AuEq) calculated using long term 2023 - 2027 “Energy & Metals Consensus Forecasts” March 19, 2018 average of US$1,310/oz for Au, US$17.91/oz for Ag, US$1.07/pound for Pb and US$1.42/pound for Zn. Adjustment has been made for metallurgical recovery and is based company’s preliminary testwork results which used flotation to separate concentrates including a pyrite concentrate with credits only for Au and Ag. Based on grades and contained metal for Au, Ag, Pb and Zn, it is assumed that all commodities have reasonable potential to be economically extractable.

a. The formula used for Au equivalent grade is: AuEq g/t = Au g/t + Ag g/t*0.0124+Pb%*0.509+Zn%*0.578 with metallurgical recovery of 88.8% Au, 80.6% Ag, 80.4% Pb and 69.1% Zn.

b. Au equivalent ounces are calculated by multiplying Mineral Resource tonnage by Au equivalent grade and converting for ounces. The formula used for Au equivalent ounces is: AuEq Oz = [Tonnage x AuEq grade (g/t)]/31.1035.

4. Mineral Resources are reported on a dry in-situ basis.

5. Reported at a 0.7 g/t AuEq cut-off above pit shelland 1.4g/t AuEq below the pit shell. Cut-off parameters were selected based on an RPM internal cut-off calculator, which indicated that a break-even cut-off grade of 0.7g/t Au Equivalent above pit and 1.4g/t AuEq below pit, assuming a gold price of US$1310 per ounce, an open mining cost of US$6 per tonne and a processing cost of US$20 per tonne milled and processing recovery of 88.8% Au, 80.6% Ag, 80.4% Pb and 69.1% Zn.

6. Mineral Resources referred to above, have not been subject to detailed economic analysis and therefore, have not been demonstrated to have actual economic viability.

 

*Altan Nar Gold Project Bayankhongor Aimag, Southwest Mongolia NI 43-101 Technical Report.

 

June 21, 2018 Altan Nar has received limited exploration over the past years as the Company’s resources were focused on the Bayan Khundii discovery. The most recent program successfully tested a structural intersection which returned the highest grade intersection at Altan Nar. The structural intersections or zones of dilation provide the setting for the emplacement of broader zones of mineralization along the main NNE trending structural corridor. However recent interpretation shows that the highest grades were hosted in a preferred, near horizontal zone, now believed to represent an epithermal boiling event. It is this combination of factors that creates the optimum conditions for the deposition of these high grades as witnessed in the results of the late-2019 drilling and which will help guide future exploration in this deposit and throughout the 5.6 km trend.

 

Highlights from Q4-2019 exploration results:

 

- Drilling expanded high-grade core of the Discovery Zone (“DZ”):

  • 45.7 g/t gold, 93.4 g/t silver, 1.54% lead and 3.40% zinc over 7 metres beginning at ~ 70 metres of vertical depth, within 23 metres grading 17 g/t gold (TND-135)
  • 12.2 g/t gold over 10 metres (TND-134) including 2 metres of 52.9 g/t gold confirming high-grade gold mineralization south of the “Gap Zone”
  • 10 metres of 4.68 g/t (TND-138) confirming high-grade gold mineralization north of the “Gap Zone”

 

- TND-136 confirms continuity of mineralization now open to the south

 

Many of the Q4-2019 high-grade intersections are locally outside or in areas of previously low grade resource blocks and therefore expands the DZ high-grade core indicating consistency in high-grade mineralization within the identified ore horizon, and are expected to positively impact the resource of Altan Nar and opening the way for further expansion along strike and elsewhere in the district. The program also demonstrated continuity of anomalous gold and base metals along the structural corridor to the south of the DZ, which will be tested further in upcoming programs.

 

For further details, please refer to the Company’s February 4, 2020 news release.

 

 


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