Quotes from the Company:
“With an initial open-pit reserve of over 400,000 ounces grading 3.7 g/t gold and further resources and prospects in the vicinity, Erdene is positioned to emerge as a profitable new producer,” said
“Finally, we completed a Q4 2019 exploration and technical study field program to continue to build on our exploration success in the district and provide the necessary geotechnical information for the BFS,” concluded
Bankable Feasibility Study and Front-End Engineering and Design Study
In late
These studies are being completed by Canadian and Australasian firms with Mongolian experience:
- Roma Group Ltd. (“Roma”), a leading regional provider of engineering, business and asset valuations, risk advisory, corporate and M&A advisory services will manage preparation of the NI 43-101 BFS Technical Report as well as the hydrology-hydrogeological and geotechnical studies, cost estimation and financial modelling workstreams. Roma is listed on the
Hong Kong Stock Exchange and has significant experience leading technical studies and valuation projects for major regional and Mongolian mining and financial firms. - Several Mongolian companies are providing in-country services and support for the BFS and FEED Study, including:
Soil Trade LLC (“Soil Trade”), a geotechnical engineering firm,LOBO Erdene LLC (“LOBO”), an engineering and construction firm,Project Mining LLC (“Project Mining”), a mining engineering consulting firm; andEco Trade LLC (“Eco Trade”), an environmental consulting firm. Erdene works closely with local specialists to ensure compliance with Mongolian regulations. O2 Mining Ltd. (“O2”) will assist with the BFS mine design and planning (including closure) and co-lead the FEED Study for non-process infrastructure and Mongolian construction permitting workstreams. O2 is aHong Kong -based engineering firm with significant experience in mine development inAustralasia , including the commissioning and operation of three gold and coal mines inMongolia .Auralia Mining Consulting (“Auralia ”), have been engaged to confirm final mineral reserve modelling and mine design optimization.Auralia are aPerth, Australia -based consulting firm with expertise in mine engineering and resource modelling and extensive experience with gold projects with companies such as Barrick and Gold Road Resources.- 360-
Global Inc. (“360-Global”) will carry out process plant design and engineering for the BFS and FEED Studies. 360-Global is a consulting firm with offices inthe Philippines andAustralia , specialized in full cycle design services and experienced with gold processing infrastructure globally. ATC Williams Pty Ltd , (“ATCW”) will undertake mineral waste and tailings facility design and management and mine closure planning. ATCW is based inMelbourne, Australia and has extensive experience in mineral waste and tailings transport, storage, closure and water management, including at the Oyu Tolgoi project inMongolia .Blue Coast Research Ltd (“BCR”) will continue to provide metallurgical testing support for theKhundii Gold Project . BCR have extensive experience with gold deposits and have carried out all of the Bayan Khundii andAltan Nar metallurgical test work to date.- Sustainability
East Asia , Ramboll, andEco Trade LLC will continue to work together to deliver the Environmental and Social Impact Assessment and the Mongolian Detailed Environmental Impact Assessment for the Project.
Technical Studies Projects
Roma, with support from Soil Trade, completed drilling for a geotechnical program including field based packer and load testing for rock strength testing and laboratory strength and shear strength analysis. This data will be incorporated into mine planning in Q1 for use in the slope optimization for the proposed Bayan Khundii open pit.
A metallurgical program, managed by BCR, is currently underway to optimize Cyanidation, dewatering , comminution circuit and provide data for final design and equipment sizing. Completion is expected in mid-Q1 following which the final results can be incorporated into the process plant design work being undertaken by 360 Global.
In late Q4 Soil Trade carried out an extensive soil engineering geotechnical drilling program. Data from the test work will be used to design foundations for process and non-process infrastructure for the Bayan Khundii mine site. As well, a detailed topographical survey was completed to aid in the site development and Mongolian permitting work.
Permitting
In Q4 2019, the Company made significant progress on key permitting related activities:
- Bayan Khundii Technical and Economic Assessment (“Mongolian Feasibility Study” or “MFS”): The Company received conditional approval of its statutory MFS by the
Mineral Resources Professional Council of theMineral Resource and Petroleum Authority (“MRPAM”) ofMongolia . The MFS is the base case assessment required for construction-related permits to begin earthworks at theKhundii Gold Project - Water Reserve Registration:
The Mongolian Ministry of Environment and Tourism approved a water reserve and flow rate to be utilized for the planned processing plant and infrastructure of theKhundii Gold Project . - Land Arrangement Plan: The Shinejinst Civil Representative Committee approved a land arrangement plan granting Erdene access to a 100 hectare area required to construct the Bayan Khundii open-pit and associated surface infrastructure.
Exploration
During Q4 2019 the Company completed diamond drilling on its Ulaan and
Altan Nar (Gold, Silver, Lead and Zinc): A significant exploration and technical evaluation program is being designed for 2020 for the Altan Nar project. This will be partially shaped by the recently completed drilling of five holes in the area of theDiscovery Zone deposit. The objective was to determine the extent and consistency of the high-grade core and test for expansion of mineralization along strike.Khar Mori (Gold): Detailed surface exploration which includes tightly spaced geochemical sampling (soil and rock) and geological mapping was completed in the vicinity of the new 32.9 g/t goldKhar Mori discovery and adjacentAltan Arrow prospects.Khar Mori is also scheduled to be the target of increased exploration in 2020.- Ulaan (Copper-Gold): Extended UDH-02 (drilled in Q3 2018) to 638 metres depth to test for porphyry related mineralization beneath the main phyllic alteration zone. Additionally, two scout holes were completed peripheral to the main phyllic alteration zone with targets that included a sericite-quartz-tourmaline breccia body suggestive of an intrusion or porphyry related environment.
Results from these three programs are expected by mid Q1-2020.
About Erdene
Erdene’s deposits are located in the Edren Terrane, within the Central Asian Orogenic Belt, host to some of the world’s largest gold and copper-gold deposits. The Company has been the leader in exploration in southwest
In October of 2019, Erdene announced the results of an independent Technical Report for the
The Altan Nar PEA is by nature, a preliminary economic study, based in part on Inferred Resources. Inferred Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves which is required for a prefeasibility or feasibility study. Mineral resources that are not mineral reserves do not have demonstrated economic viability and there is no certainty that the PEA will be realized.
Qualified Person and Sample Protocol
Erdene’s drill core sampling protocol consisted of collection of samples over 1 or 2 m intervals (depending on the lithology and style of mineralization) over the entire length of the drill hole, excluding minor post-mineral lithologies and un-mineralized granitoids. Sample intervals were based on meterage, not geological controls or mineralization. All drill core was cut in half with a diamond saw, with half of the core placed in sample bags and the remaining half securely retained in core boxes at Erdene’s Bayan Khundii exploration camp. All samples were organized into batches of 30 including a commercially prepared standard, blank and either a field duplicate, consisting of two quarter-core intervals, or a laboratory duplicate. Sample batches were periodically shipped directly to SGS in Ulaanbaatar via Erdene’s logistical contractor,
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include the ability to obtain required third party approvals, market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
Erdene Contact Information | |
Phone: | (902) 423-6419 |
Email: | info@erdene.com |
Twitter: | https://twitter.com/ErdeneRes |
Facebook: | https://www.facebook.com/ErdeneResource |
LinkedIn: | https://www.linkedin.com/company/erdene-resource-development-corp-/ |
YouTube: | https://www.youtube.com/channel/UCILs5s9j3SLmya9vo2-KXoA |
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