27 slides from Erdene Resource Development's conference presentation, October 2016
Slide 1: Developing a New Gold District in Southwest Mongolia
Erdene Resource Development TSX:ERD OCTOBER 2016 DEVELOPING A NEW GOLD DISTRICT IN SOUTHWEST MONGOLIA SUBSCRIBER INVESTMENT SUMMIT
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, guida
Slide 3: Company Highlights
Company Highlights Discovering and Developing a New Gold District in the Tian Shan Mineral Belt High-Grade Gold Discovery in 2015 at Bayan Khundii Project (100% Owned) Advancing the High-Grade Altan Nar Gold-Polymetallic Project (100% Owned) Q2 2016 Financing and Royalty Transaction with Sandstorm G
Slide 4: Experienced Board and Executive
Experienced Board and Executive Board of Directors Board of Directors Chris Cowan, Chairman Dr. Anna Biolik Mining executive/engineer with 40+ years in senior industry positions, One of the foremost Canadian experts on Central including 28 years with Falconbridge Ltd. Asian business and diplomacy. F
Slide 5: Corporate Snapshot
Corporate Snapshot Stock Symbol ERD (TSX) Shareholder Summary Share Price (Oct 6th) $0.36 12.3% 52-Week Range $0.11 - $0.55 10.5% Market Capitalization $45 M Shares Outstanding 121 M 4.1% Shares Fully Diluted 134 M 62% Cash and Securities $2.0 M 11.3% Debt nil 5.9 M Warrants; Avg. Value: $1.1 M $0.1
Slide 6: Regional Gold Production/Development
Regional Gold Production/Development TSX Companies Producing 2.3 Million Ounces Per Year Centerra Gold’s Polymetal buys Bayan Airag: First Centerra Gold Kinross’s Kupol mine Kumtor produces Bakyrchik Gold gold production in advances 1.6 Moz produces 758,000 oz 520 Koz in 2015 Projects: US$618M Q2-20
Slide 7: Southern Mongolia Infrastructure
Southern Mongolia Infrastructure Mining Activity & Regional Build-Up Major Infrastructure Development With Access to Equipment & Manufacturing 7
Slide 8: Erdene's Emerging Gold District
Erdene’s Emerging Gold District Multiple Discoveries over 20 km Trend; 100% Erdene Altan Nar Gold-Polymetallic Project – 18 targets along 5.6 km mineralized trend; 2 deposits at Discovery Zone and Union North Bayan Khundii Gold Project – Late 2015 high-grade gold discovery; Q2-2016 Drill Highlight -
Slide 9: Altan Nar Gold Project - Highlights
Altan Nar Gold Project - Highlights Extent of Initial 1Q15 Resource Ownership - 100% Erdene Union North (UN) Multiple Targets - 18 targets over 5.6 km trend Shallow - Average drilling depth of 105 metres Discovery Zone (DZ) Resource - Only 2 of 18 targets included High-Grade - 2015 drilling: 19 m of
Slide 10: Altan Nar Initial Resource Estimate
Altan Nar Initial Resource Estimate Carbonate Base Metal Gold System Significant Vertical Extent Potential; Only Shallow Drilling Completed at Altan Nar 10
Slide 11: Altan Nar Initial Resource Estimate
Altan Nar Initial Resource Estimate High-Grade, Near-Surface, Steeply Dipping Zones, Open at Depth Discovery Zone Plan Map § Shallow resource established for initial starter N 100m @ 1.1 g/t AuEq pits on first 2 of 18 priority targets 19m @ 7.8 g/t AuEq § 90% of mineral resource is <150 m of Union N
Slide 12: Bayan Khundii Gold Project
Bayan Khundii Gold Project Q3 2015 - Multi-Ounce Gold Surface Samples Initial Surface Sampling - up to 4,380 g/t Gold 12
Slide 13: Bayan Khundii Gold Project
Bayan Khundii Gold Project Drill Hole Plan Map see next slide 13
Slide 14: Bayan Khundii Gold Project
Bayan Khundii Gold Project Gold Histogram Plan Map of Striker Zone 14
Slide 15: Bayan Khundii Gold Project
Bayan Khundii Gold Project Drill Hole Plan Map 15
Slide 16: Bayan Khundii Gold Project
Bayan Khundii Gold Project Line 1 (Gold Hill & Striker Zone): High-Grade Gold Over 500m BKD-09; 1m samples from 33 to 59m (g/t) 0.21 79.40 18.50 0.03 0.11 0.08 0.28 0.08 0.06 0.24 0.18 0.77 38.90 0.30 5.21 4.56 0.25 1.04 0.60 1.37 0.67 1.09 0.19 0.22 0.43 0.33 16
Slide 17: Bayan Khundii Gold Project
Bayan Khundii Gold Project Line 2: Long Section Through Striker Zone BKD-51 1m samples 74 to 114 metres (Gold g/t) 0.23 1.44 2.01 4.26 0.18 0.14 0.37 1.26 3.84 0.75 0.98 1.33 0.52 0.78 0.49 2.10 2.29 0.58 1.14 0.87 0.70 0.31 0.34 0.54 0.90 11.80 6.39 41.20 3.49 1.04 4.90 0.10 17
Slide 18: Bayan Khundii Gold Project
Bayan Khundii Gold Project Looking Northeast from Westridge 18
Slide 19: Bayan Khundii Gold Project
Bayan Khundii Gold Project Low Sulphidation Epithermal Model 500m Silica Cap Silica Cap Striker (silicification) Gold Zone (silicification) Stockwork Hill Zone Source: Adapted from Buchanan (1990); Hollister (1995); Beger & Eimson (1990) 19
Slide 20: Bayan Khundii Gold Project
Bayan Khundii Gold Project Low Sulphidation Epithermal System Significant Depth Potential; Average Drilling Depth of 75 Metres 20
Slide 21: Bayan Khundii Gold Project
Bayan Khundii Gold Project Target Area - 2 Kilometres by 700 Metres § Up to 6.9 g/t gold at northeast extent of target area § Shallow drilling in Northeast Zone returned strongly altered volcanics with up to 1.7 g/t gold § Geophysics (resistivity) suggests Cross silicified/altered volcanics under Se
Slide 22: Bayan Khundii Gold Project
Bayan Khundii Gold Project Cross-Section of Striker Zone Heading North Under Cover 22
Slide 23: Bayan Khundii Gold Project
Bayan Khundii Gold Project Excellent Initial Metallurgy § Gold is free milling and amenable to conventional processing techniques § Gravity concentration and cyanidation of the gravity tails yielded: - 99% recovery from high- grade composite (24.9 g/t Au) and - 92% from low-grade composite (0.7 g/t
Slide 24: Bayan Khundii and Altan Nar Projects
Bayan Khundii and Altan Nar Projects Regional Infrastructure Shinejinst Soum § Road Tsahildag Khudag Basin - 175 km to rail head / mining center (Ceke Port of Entry on China border) Geophysical Survey & § Water Drill Holes - Hydrogeological study completed in Tsahildag Khudag Basin (cost $460,000);
Slide 25: Bayan Khundii and Altan Nar Projects
Bayan Khundii and Altan Nar Projects Exploration Programs § Q3-Q4 2016 - Completion of multiple, independent expert studies in Q3 - Drilling resumed at Bayan Khundii on September 5th - Drilling at Altan Nar and Altan Arrow to follow Bayan Khundii drill program - Results to continue throughout Q4 - T
Slide 26: Why Invest in ERD?
Why Invest in ERD? Early-In Opportunity Development Stage of a Successful Mining Company ‒ Developing a new gold district through greenfield discovery ‒ Early in exploration to development value curve Value / ~Market Cap Ownership ‒ 100% interest in Projects Growth Potential Bayan Khundii / ‒ Limite
Slide 27: Erdene
Erdene Resource Development TSX:ERD OCTOBER 2016 DEVELOPING A NEW GOLD DISTRICT IN SOUTHWEST MONGOLIA Peter C. Akerley President & CEO, Director Tel: 902-423-6419 Email: info@erdene.com Website: www.erdene.com Twitter: @ErdeneRes