Erdene Resource Development Corporation · TSX:ERD
Erdene Resource Development — Investor Presentation (November 2008)
33 slides from Erdene Resource Development's investor presentation, Nov 5, 2008
Slide 1: Advancing the Zuun Mod Molybdenum Project
Advancing the Zuun Mod Molybdenum Project Presented Presented by by PETER PETER AKERLEY, AKERLEY, President President and and CEO CEO 1
Slide 2: Forward-looking Statements
Forward-looking Statements Certain information regarding Erdene ("the Company") 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, guidan
Slide 3: Overview
OVERVIEW Mongolia Mongolia Canada Canada U.S. U.S. Aggregate Aggregate Coal Coal Coal Coal Molybdenum Molybdenum DIVERSE MID-TIER RESOURCE EXPLORATION & DEVELOPMENT COMPANY 33
Slide 4: Zuun Mod Molybdenum Project
ZUUN MOD MOLYBDENUM PROJECT Project Status: 272M lbs (124,000 tonnes) of Mo; average 0.052% Mo; wholly owned; resource expansion underway, advanced assessment stage; ~200km from China border and rail Market: Asia-Pacific is the fastest growing molybdenum consumer currently at ~35% of total world con
Slide 5: Zuun Mod Resource (43-101) and Comparable
Zuun Mod Resource (43-101) and Comparable Deposit Confidence Tonnes Mo % Mo lbs Endako (Canada’s Largest Proven and Mo Mine) Probable 276,000,000 0.051% 310 Mlbs Measured And Zuun Mod Indicated 237,000,000 0.052% 272 Mlbs 5
Slide 6: Zuun Mod Project – Tectonic Setting
Zuun Mod Project – Tectonic Setting Zuun Mod Oyu Tolgoi Terrane map of Mongolia (from Badarch et al, 2002) 6
Slide 7: South Gobi Cu-Mo-Au Porphyry District
South Gobi Cu-Mo-Au Porphyry District New Kazakh Mongol Arc(Kazakh Mongol Arc): highest ranking magmatic arc in Mongolia and in the top quartile for global porphyry copper prospectivity Zuun Mod Mo-Cu Porphyry Deposit Oyu Tolgoi Cu – Au Porphyry Deposit 7
Slide 8: South Mongolia – RTP Magnetics
South Mongolia – RTP Magnetics • Structural dilation zone • Crustal weakness infilled by ZM magmatic complex 8
Slide 9: Zuun Mod Structural Dilation Zone
Zuun Mod Structural Dilation Zone Zuun Mod -Structural dilation zone -Crustal weakness infilled by ZM magmatic complex 9
Slide 10: Tectonic setting of Zuun Mod Project
Tectonic setting of Zuun Mod Project Ulaan Nuur Bu lga n Aj b ogd Sevrei Zuun Mod Project Gobi Tien Shan Trans-Altai Island Arc Terrane Mid-Late Paleozoic Volcanic, Sediment, Intrusive Mesozoic Volcanic and Sedimentary Cover 1:200,000 Geology, Mongolian Government 10
Slide 11: Zuun Mod Project Area on Landsat
Zuun Mod Project Area on Landsat ZM Mo South Corridor 49,538 Ha 11
Slide 12: Zuun Mod (Quickbird 2008) Colour Enhanced Alteration
Zuun Mod (Quickbird 2008) Colour Enhanced Alteration Zuun Mod Alteration ? Envelope ? Racetrack Mo-Cu Deposits 5 km 12
Slide 13: Mineralization and intrusive history dating
8km 246.8 Ma ± 6.9 Unaltered alkalai granite 226.2 Ma ± 5.9 Sericitized andesite 287.5 Ma ± 7.5 QSP altered granodiorite K – Ar date Re - Os date • Mineralization: Carboniferous – Permian • Intrusive history: Carboniferous - Triassic Extends ~100M years 283 Ma • Supported by presence of multiple Mol
Slide 14: Zuun Mod Ground RTP Magnetics
Zuun Mod Ground RTP Magnetics Zuun Mod Ring Dykes, Dacite Porphyry Dykes, Eroded Quartz Copulas 14
Slide 15: Zuun Mod – Contoured Mo in Rock
Zuun Mod – Contoured Mo in Rock 2m veins: >20g/t Ag; 0.1% Zn; 0.1% Pb 140m of 0.16% Cu >20m of 0.2% Cu TD 220m: Ag/Pb Ag/Pb/Zn /Zn 10m of veins: TD 0.03% Mo 74m of and 0.05% 2.2g/t Ag Cu Surface Au anomaly; up to 4g/t Au 90m of 0.09% Mo Red Contour Zone > 30ppm Mo Max >1000ppm Mo 15
Slide 16: Zuun Mod Complex (Quickbird Image)
Zuun Mod Complex (Quickbird Image) Drill Holes and 0.04% Mo Isosurface 16
Slide 17: Molybdenum 0.04% Isosurface (looking N)
Molybdenun 0.04% Isosurface (looking N) 17
Slide 18: Long Section
NOOO0Z8r NoOS698P F- 516500 Long Section
Slide 19: Zuun Mod May 2008 Resources / September 2008 Results
ZUUN MOD May 2008 Resources / September 2008 Results September 2008 Drill Results Cut-off Grade 0.04% Mo% 410m of 0.057% Mo (98m 0.091%) Measured Resource & Category Inferred 399m of Indicated 0.055% Mo (36m 0.088%) Resources Mt 237.1 49.7 428m of 0.060% Mo (66m 0.101%) Cu% 0.068 0.063 373m of Mo% 0
Slide 20: Molybdenum Fundamentals
MOLYBDENUM FUNDAMENTALS Uses Led by Steel Casting 4% Tool & High Speed Steel 5% Moly Metal 7% Chemical 7% Low Alloy Steel 30% Stainless Steel 36% Super Alloys 5% Others 2% 20
Slide 21: Need for New Producers
NEED FOR NEW PRODUCERS Molybdenum Supply by Source Need for new sources Zuun Mod – Erdene Consumption Molybdenum Supply (Mlb Mo) Improved recoveries New supply needed 600 China expansions Recycling Existing mines Consumption trend 500 Zuun Mod - Erdene 400 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 22: China's Molybdenum Imports
CHINA’S MOLYBDENUM IMPORTS Mongolia 19% Peru 36% Chile 18% 2007 Imports: Russia Iran 12000 tonnes 13% 14% CMMR 2008 22
Slide 23: Regional Molybdenum & Steel Production
ZUUN MOD Regional Molybdenum & Steel Production World’s Largest Steel Producing Region China’s Largest Molybdenum Producing Regions 23
Slide 24: Established Infrastructure
ZUUN MOD Established Infrastructure 24
Slide 25: Zuun Mod - Transportation Options
Zuun Mod - Transportation Options 25
Slide 26: Zuun Mod: Phased Production
Zuun Mod: Phased Production Phase I: Target <100m higher grade zones for start-up 14m of 0.23% 38m of 0.10% Focus on areas which provide for future ease of access to highest priority bulk tonnage targets 200m to 400m of 0.06% Mo 26
Slide 27: Zuun Mod – Development Strategy
Zuun Mod – Development Strategy 27
Slide 28: Minarco Preliminary Pit Design
ZUUN MOD Minarco Preliminary Pit Design 28
Slide 29: Zuun Mod Process Flow Sheet
Zuun Mod Process Flow Sheet 29
Slide 30: Where to develop the next molybdenum mine?
Where to develop the next molybdenum mine? Policy Potential Index Mongolia British Columbia Region - Deposit (Ruby Creek/Kitsault) Mexico (El Creston) Western Australia (Spinifex Ridge) Nevada (Mount Hope) 0 20 40 60 80 100 Score 2007 Policy Potential Index is a composite index that measures effects
Slide 31: Zuun Mod Timeline
ZUUN MOD Timeline 2008 2009 2010 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Resource Definition Preliminary Assessment Study Mining License Application Prefeasibility Strategic Partner Evaluation Feasibility Development Start-up 31
Slide 32: Zuun Mod Summary
ZUUN MOD SUMMARY One of the largest molybdenum deposits in Asia On the doorstep of the world’s largest steel producing region Established 272 Mlbs of molybdenum resource at 0.052% May 2008 Successful 2008 Drilling Updated resource estimate Q4 2008/Q1 2009 Preliminary assessment study Q1/Q2 2009 32
Slide 33: Zuun Mod
ZUUN MOD E25)
Erdene Resource Development — Investor Presentation (November 2008) on 6ix