Bayan Khundii Gold Project
In Q2-2015, Erdene conducted an initial exploration program on the southern portion of the Company’s 100%-owned Khundii exploration license in southwest Mongolia, including an initial rock-chip sampling program which revealed multiple very high-grade surface quartz veins that returned up to 4,380 g/t gold.
Since that time, drilling has revealed the presence of very high gold grades, with up to 2,200 g/t gold (70.7 oz/t) over 1-metre intervals, within broad mineralized zones, with up to 131 metres of 3.9 g/t gold, including 80 metres of 6.0 g/t gold. Since the first drill hole in Q4-2015, the Company has completed 234 diamond drill holes, totaling 38,072 metres.
In addition to drilling, the Company has completed a comprehensive exploration program at Bayan Khundii that has included: geological mapping; soil geochemical surveys; additional surface rock chip sampling; a ground magnetic survey; gradient array and dipole-dipole induced polarization surveys. In addition to this work, a series of detailed follow-up studies have also been completed, predominantly on drill core and surface outcrop, including: petrographic and mineralogical analyses; a fluid inclusion study; SEM gold composition analysis; Short-Wave Infra-Red Analysis (SWIR); structural analysis; and overall petrogenetic analysis. Detailed studies indicate the mineralized zones can be characterized as low-sulphidation epithermal, quartz-illite-adularia type mineralization.
In Q1-2016 and Q3-2017, the Company completed metallurgical test work on Bayan Khundii master composites that indicated gravity concentration and cyanidation of the gravity tails yield very good overall gold recoveries, with 91% to 99% gold recovery on a range of gold grades from 0.7 g/t to 25.9 g/t gold.
The Bayan Khundii license has a 2.0% net smelter returns royalty (“NSR Royalty”) in favour of Sandstorm Gold Ltd. with a buy-back option to reduce the NSR Royalty to 1.0%.
Technical ReportsMar 26, 2018Bayan Khundii NI 43-101 Technical Report
Mar 23, 2017Bayan Khundii NI 43-101 Technical Report, Q1-2017