Erdene Resource Development Corporation · TSX:ERD
Erdene Resource Development — Metals Investors Forum 2018
27 slides from Erdene Resource Development's conference presentation, Mar 3, 2018
Slide 1: Developing a New High-Grade Gold District
DEVELOPING A NEW HIGH- GRADE GOLD DISTRICT METALS INVESTORS FORUM | MARCH 3, 2018
Slide 2: Forward Looking Statements
Forwarding Looking Statements Certain information regarding Erdene ("the Company") mineralized zone has an interpreted dip of 45 degrees Person for the purpose of National Instrument 43-101. contained herein may constitute forward-looking therefore true width is close to reported drill hole statemen
Slide 3: Erdene at a Glance
Erdene at a Glance High-Grade, District-Scale, Experienced Team High-grade, near-surface, 100%-owned gold projects within an expanding mining region within an emerging mining region. The new Khundii Gold District provides exceptional discovery potential beyond our core projects. We are the longest-s
Slide 4: Emerging Gold District in Southwest Mongolia
Emerging Gold District in Southwest Mongolia New Mining District Near Chinese Border A Decade of Methodical, Regional Exploration The Khundii Gold District in the Edren Terrane for Epithermal Multiple Near-Surface Discoveries Gold/Porphyry Copper in Unexplored Area Since 2010 TSX:ERD | www.erdene.co
Slide 5: Bayan Khundii: Looking Northeast Through Striker Zone
Bayan Mongolian word for Rich | Khundii Mongolian word for Valley Looking Northeast Through Striker Zone (2 kilometres)
Slide 6: Bayan Khundii Snapshot: 234 Holes
Bayan Khundii Gold Project Snapshot: 234 Holes with >18% Intersecting >30g/t Au Discovered: 2015 Total Drilling: 38,070 m No. of Holes: 234 Section Line Avg. Depth: 162 m (60° dip) (see next slide) System Size: 1.5 x 0.4 km Holes with 18% > 1 oz / t Au: Met Recovery: 92 - 99% TSX:ERD | www.erdene.co
Slide 7: Multiple High-Grade Zones With Lower Grade Halo
Bayan Khundii Gold Project Multiple High-Grade Zones With Lower Grade Halo NE Zone North Midfield 1.4 km Midfield Striker Controlling Structures West 3-D grade model underlying geology; Striker multitude of NW striking-SW dipping high grade low sulfidation epithermal quartz-adularia zones surrounded
Slide 8: Structural Targeting of Ultra High-Grade Feeder Zones
Bayan Khundii Gold Project Structural Targeting of Ultra High-Grade Feeder Zones • 4DGeo Q3-Q4 Structural Location of Study and Interpretation Breach North Midfield, 2200 g/t Au Major Fault Major(Potential Fault- Feeder potenZone) Hanging Wall tial feede Relay ramp geometry and kinematics r zone Sou
Slide 9: Striker Zone Cross Section – Continuous High Grade Core
Bayan Khundii Gold Project Striker Zone Cross Section – Continuous High Grade Core Striker Zone continues down dip >250m High-grade core of Striker exposed at surface; metres and open; adjacent Gold Hill near continues down dip >100 metres; highlights of surface; 0.3g/t Au shell 1m assays within 1 g
Slide 10: Midfield Zone - Hanging Wall Cross-Section
Bayan Khundii Gold Project Midfield Zone - Hanging Wall Cross-Section Midfield Zone, 230 metres in length; 0.3g/t High-grade zones begin 50 m below surface, shell with >10g/t core quartz adularia within 1g/t Au shell; projected 100m down dip; zones, zone comes within 20m of surface limited drilling
Slide 11: North Midfield Zone - Hanging Wall Cross-Section
Bayan Khundii Gold Project North Midfield Zone - Hanging Wall Cross-Section Midfield North Zone, within 50 metres of Limited drilling in high-grade zone, 95 surface; 150m extent down dip; 0.3g/t shell metres from surface within 1g/t Au shell; with >10g/t core quartz adularia zones projected 100m zon
Slide 12: New 2017 Extensions to the North and at Depth
Bayan Khundii Gold Project New 2017 Extensions to the North and at Depth High-grade zones, up to 1m @ 2,200 g/t gold within broad mineralized zones, up to 131m @ 3.9 g/t gold TSX:ERD | www.erdene.com | 12
Slide 13: 2018 Definition & Expansion Drilling
Bayan Khundii Gold Project - Exploration Potential 2018 Definition & Expansion Drilling • 5400 metres (~ 30 holes) in Testing N and NE Extension Potential Q2-2018 • Defining high-grade areas for Testing Ulaan to Testing NW Structure Interpreted as Potential continuity and extension the West for Feed
Slide 14: Khundii Regional Gold Exploration
KHUNDII REGIONAL GOLD EXPLORATION SEVERAL UNTESTED & NEWLY DISCOVERED TARGETS
Slide 15: Bayan Khundii Regional Gold Prospects
Regional Exploration Potential Bayan Khundii Regional Gold Prospects • Expanding region of gold mineralization over 6 km x 3 km area • Multiple parallel structures Q4/17 Shallow Drilling intersects 70g/t/2m & identified hosting anomalous 39g/t/1m Au gold with similar alteration and geology to Bayan
Slide 16: Altan Nar Gold-Polymetallic Project
ALTAN NAR GOLD-POLYMETALLIC PROJECT 5.6 KM LONG, HIGH-GRADE, AND NEAR-SURFACE
Slide 17: Altan Nar Snapshot
Altan Nar Gold-Polymetallic Project Snapshot Discovered: 2011 Total Drilling: 18,987 m No. of Holes: 122 10 km Avg. Depth: 157 m (45° dip) System Size: 5.6 x 1.5 km Mineralized 18 Target Areas TSX:ERD | www.erdene.com | 17
Slide 18: 5.6 km Trend, High-Grade Au-Ag-Pb-Zn System
Altan Nar Gold-Polymetallic Project 5.6 km Trend, High-Grade Au-Ag-Pb-Zn System • Significant exploration potential within 5.6 km Union North mineralized trend (UN) • Detailed exploration completed on only two of 18 targets Discovery • Intermediate sulfidation, Zone (DZ) carbonate base metal deposit
Slide 19: Q3-2017 Drilling of New High-Grade Zone
Altan Nar Gold-Polymetallic Project - Discovery Zone Q3-2017 Drilling of New High-Grade Zone Long-Section Through Discovery Zone (Looking Northwest) See Forward Looking Statements on slide 2 for cautionary statements regarding Gold Equivalent calculations TSX:ERD | www.erdene.com | 19
Slide 20: Path Forward
PATH FORWARD A BALANCE BETWEEN GROWTH & DEVELOPMENT TSX:ERD | www.erdene.com | 20
Slide 21: 2018 Technical Program
Path Forward 2018 Technical Program Q1 > 3-D Modelling, Interpretation and Planning (Terrane Geoscience, 4-D Geo) > Revision of Altan Nar NI 43-101 Resource Estimate (RungePincockMinarco) Q2 > Drill testing of ultra-high grade targets at Bayan Khundii (4-5000 metres) > Follow-up drilling of new high
Slide 22: Processing, Permitting, and Infrastructure
Path Forward Processing, Permitting, and Infrastructure Mining/Processing Studies > Bayan Khundii is free milling, with master composites averaging 0.7g/t to 25g/t providing 91% to 99% recovery using conventional gravity and leach at ~80% passing 60 to 150 micron > RPM engaged on pre-scoping studies
Slide 23: Developing Mongolia's Capital Markets
Path Forward Developing Mongolia’s Capital Markets Erdene is preparing a cross-listing of shares on the Mongolia Stock Exchange • Provide Mongolians with greater access to Erdene shares in local currency • Would be first of its kind transaction in Mongolia • Increase Mongolian shareholders at time o
Slide 24: Highly Experienced Board of Directors
Highly Experienced Board of Directors Pioneers in Mongolia’s Post-Socialist Exploration Peter Akerley, President & CEO John Byrne Mining executive/geologist with 25+ years Finance industry professional with 30+ experience in mineral exploration, corporate years experience in Canadian banking finance
Slide 25: Corporate Snapshot (as of Feb 13, 2018)
Corporate Snapshot (as of Feb 13, 2018) Share & Capital Structure (TSX:ERD) Shareholder Summary CAD USD Share Price $0.48 $0.39 25% 52-Wk Range $0.47-$1.40 $0.38-$1.13 55% Market Cap $70 mln $57 mln 11% 9% Shares O/S 146 mln - Retail Shares F/D 156.6 mln - Institutional (incl. 10 institutions; Cash
Slide 26: Erdene's 2018 Milestones
Path Forward Erdene’s 2018 Milestones Drill Results from Bayan Q2 Khundii, High-Grade Zones Targeting Mongolia Stock Q2 Exchange Listing Q3 Resource Estimates Regional Exploration Drill Q3 Results Launching Economic Studies Q4 and Permitting Process Q4 Drilling Continues TSX:ERD | www.erdene.com | 2
Slide 27: For More Information
FOR MORE INFORMATION: TEL: 902-423-6419 EMAIL: INFO@ERDENE.COM WWW.ERDENE.COM @ERDENERES
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