Provides Update on Base and Precious Metals Exploration Programs
HALIFAX, Nov. 24 /CNW/ - Erdene Gold Inc. (TSXV:ERD) today announced it
has initiated a definition drill program at Zuun Mod, its molybdenum-copper
project in Mongolia. The Company also provided an update on its precious and
base metal exploration programs in Mongolia.
Zuun Mod Molybdenum-Copper Project
Drilling resumed this week in the Racetrack Zone of the three kilometre
long Southeast Corridor. An independent Consultant recently concluded that the
Zuun Mod molybdenum-copper exploration project merits a resource definition
drilling program to establish the resource potential of previously delineated
molybdenum mineralized areas within the Stockwork and Racetrack Zones.
Previous drilling in the Racetrack Zone included hole ZMD-11, which
intersected 340 metres of 0.08% MoS2 (0.05% molybdenum) within which 52 metres
averaged 0.13% MoS2 (0.08% molybdenum), and KKMD-08, located 255 metres to the
north which returned 160 metres of 0.10% MoS2 (0.06% molybdenum) and ended in
mineralization at 279 metres.
Drilling will then move to the Stockwork (1.5 kilometres southwest of
ZMD-11) and Intersection Zones (one kilometre northeast of ZMD-11). The most
significant hole in the Stockwork Zone, drill hole KKMD-03, intersected
236 metres of 0.10% MoS2 (0.06% molybdenum) beginning at 90 metres depth and
ending in mineralization at 326 metres. Included within this 236 metre
intersection were 28 metres averaging 0.20% MoS2 (0.12% molybdenum). This zone
remains open from KKMD-03 to the south and is bounded to the north by lower
grade mineralization.
The Stockwork (formerly the Southeast Zone) and Racetrack Zones each
cover target areas of approximately 600 metres by 400-600 metres. Drilling is
expected to continue through to mid-December. It is anticipated that a minimum
of 2000 metres can be completed by the end of 2005 with results to be reported
early in 2006. The definition drilling program will resume in 2006. The
objective of the current drill program is to establish lateral continuity from
molybdenum mineralized zones intersected in previous drilling and to test for
shallower mineralization to enhance potential open-pit economics. The
Stockwork and Racetrack Zones have the potential to contain resources of
sufficient tonnage and grade to be of economic significance.
The Intersection Zone is a large, virtually untested area (2.0 kilometres
by 1.0 kilometre) of anomalous molybdenum and copper identified from surface
rock and soil samples, believed by management to offer significant potential
for outlining near-surface mineralization. Only one previous hole (KKMD-7)
tested the northeastern portion of the zone and returned drill results that
included highly anomalous molybdenum and copper up to 0.61% copper and 0.45%
MoS2 (0.27% molybdenum) over two-metre intervals as well as near surface
molybdenum mineralization with 0.08% MoS2 (0.065% molybdenum) over the top 10
metres of the hole.
The Zuun Mod project has been under exploration and evaluation since 2002
with a 20 square kilometre porphyry-related alteration and mineralized system
outlined. The property lies within the South Gobi porphyry belt as defined by
the Oyu Tolgoi copper-gold deposit and other smaller porphyry copper deposits.
Prior to the current drill program, a total of 7520 metres of diamond drilling
has been completed on the property with total exploration expenditures (WMC-
Gallant and Erdene) of approximately US$2.91 million. The project is less then
200 kilometres north of the Chinese border where rail and power is being
developed to provide raw material to the Jiquan Iron and Steel complex in
northern China.
Tsenkher Gol Project
--------------------
A surface exploration program was recently completed at the Tsenkher Gol
gold project confirming the presence of widespread, highly anomalous gold
bearing zones. The work program entailed infill rock-chip sampling, trenching,
and gradient and dipole-dipole induced polarization surveys on the main
targets zones. The results have highlighted three main gold-bearing zones
including Altan Suult, SE Khond Uul, and NW Khond Uul. These zones occupy an
area of 10 square kilometres and are characterized by high-grade quartz veins
(grab samples up to 179 g/t gold) and lower gold values associated with
disseminated sulphides in the host altered granite. All three zones show
evidence indicating strong structural control of gold mineralization.
Structures of importance appear to be NW and EW trending as well as zones of
intersection between these two structural trends.
Gold mineralization is typically contained within shear zones, sheeted
and stockwork quartz veining, breccias, and as disseminations hosted within
quartz-sericite-pyrite altered granitoids. Preliminary results of one-metre
interval chip sampling from trenches indicate wide (10 metres -14 metres)
intersections of low-grade (0.22g - 1.2g) gold mineralization in the SE Khond
Uul Zone and individual quartz vein bearing samples which assay up to 7.33
g/t. Gradient induced polarization survey results indicate large, structurally
oriented resistivity and chargeability anomalies that correlate with each of
the three main gold bearing alteration zones. A dipole-dipole survey across
the Altan Suult and SE Khond Uul alteration zones indicate that the anomalies
extend to depth. Pending receipt of outstanding assays, a review of
exploration data will follow to identify drill targets. The encouraging
results from the surface exploration program that confirmed previous work
performed on the property, combined with supporting geophysical survey
interpretation, place the Tsenkher Gol property as a high priority project for
the 2006 field season.
The Tsenkher Gol Gold project is targeting granite hosted disseminated
gold mineralization in an environment geologically similar to Centerra Gold's
producing Boroo Mine. The property is less than 200 kilometres east of
Ulaanbaatar and is located along a newly paved highway. In addition, active
placer gold mining operations occur in drainages adjacent to the Tsenkher Gol
property.
Temuujin Project - Virgin Property
----------------------------------
Three diamond drill holes (TDD-2A, TDD-20, TDD-21) totaling 1,743 metres
were completed in September 2005. Holes TDD-2A and 20 were collared to
investigate a broad Titan IP high chargeability anomaly centered over the
Temuujin II prospect Central Zone along lines 5800mE and 5400mE. Hole TDD-21
was drilled in the Temuujin II West grid area to test the western extension of
a high chargeability IP anomaly defined in 2004 coincident with the tourmaline
monzogranite dyke.
The two holes testing the Titan anomaly intersected generally intense
propylitic andesite characterized by pervasive to mottled chorite-epidote-
pyrite and rare chalcopyrite. An overprint of intense phyllic alteration
characterized by pyrite-rich, quartz-sericite alteration was also intersected
over widths varying from 1 metre to 10 metres. The propylitic alteration zones
include some minor gold (up to 0.3g/t), copper (up to 0.08%) and zinc (up to
0.5%) enrichment over two-metre wide intervals. Phyllic altered zones also
have significant gold enrichment (up to 1.2g/t) over isolated two-metre
intervals.
Hole TDD-21 was collared 1.3 kilometres west of previous scout drilling
to test a sulphide-bearing tourmaline breccia zone exposed on surface in the
Temuujin II west grid area. The hole intersected an approximate 60 metre wide
zone (21-81 metres) of an argillic (clay)-altered, tourmaline-bearing
intrusive monzonite to intrusive breccia. Disseminated pyrite and arsenopyrite
and rare stringers of arsenopyrite were noted. Assay results are consistent
with previous assays of the monzonite, characterized by enriched arsenic (up
to 0.13% arsenic) and low concentrations of gold and copper.
Previous 2004 scout drilling and the results of the recent three drill
holes identify the Temuujin II prospect as an area of porphyry-related
alteration and mineralization. Alteration occurs over a four kilometre
distance from Temuujin II to the Temuujin II west grid areas coincident with
the strike of a tourmaline monzonite dyke. While the program has been
successful in confirming a well-mineralized and altered porphyry system, the
Company's management and technical team are disappointed that to date, it has
not been successful in identifying potentially economic concentrations of
copper or gold.
Erdenet Copper - Molybdenum Project
-----------------------------------
Erdene's 2005 exploration program identified a number of copper targets
within the Company's claim group surrounding Erdenet Mining Corporation's
("EMC") copper-molybdenum mine, one of the largest copper producing mines in
Central Asia. The highest priority target is the Baglai area immediately east
of the mine. A geophysical (dipole-dipole induced polarization) survey was
carried out in November over a portion of an area of intensely altered granite
with associated sulphides on the Baglai License. The survey outlined a 500
metre by 600 metre zone of high chargeability and resistivity over the
alteration zone and coincident gradient and magnetic anomalies. The dipole
anomaly extends from near surface to an interpreted depth of 300 metres. A
second, smaller 300 metre by 300 metre zone of high chargeability and
resistivity was also outlined over volcanic rocks intruded by Erdenet Complex
granites on the southern portion of the Baglai License. The dipole anomalies
are open to both the east and west. Additional dipole surveys as well as
compilation of previous exploration in the vicinity are required to complete
coverage of the Baglai area to prioritize drill targets for a late
winter/spring drill program.
Khets Uul (Wild Mountain) Gold-Copper Project
---------------------------------------------
A program of surface mapping and rock sampling, and trenching were
completed at Khets Uul in early September. This work confirmed the extent of
surface alteration and secondary copper-bearing zones from 2004 exploration.
Trenching east and west of the Jugants massive sulphide zone (24 metre trench
result of 1.85g/t gold, 11.92g/t silver and 1.54% copper) in the Khets Uul
property identified weak to moderate pyrite alteration up to 100 metres wide
that extends along strike over a distance of approximately 1 kilometre. The
possibility remains that the Jugant massive sulphide zone represents the near
surface exposure of more substantial mineralization occurring down-dip.
Channel samples from the westernmost trench (Trench 2) intersected narrow
zones (1-2 metres) of silicification and rare quartz veining with maximum
assays of 0.18% copper and 5g/t gold. These results effectively confirm the
results from 2004 surface sampling which returned a grab sample of 4.9g/t
gold. The easternmost trench (Trench 1) intersected a zone of pyrite
alteration zone with maximum assays of 0.1% copper and 0.25g/t gold. Several
dipole-dipole IP survey lines were also completed across the alteration zone
along strike. Several narrow moderate high chargeability anomalies were
defined and remain unexplained. The effectiveness of IP surveys is greatly
limited by the rugged topography. Additional exploration will be considered on
final compilation of results in early 2006.
Erdene Gold Exhibiting and Presenting at the San Francisco Gold &
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Precious Metals Conference
--------------------------
Erdene Gold, is exhibiting at the San Francisco Gold & Precious Metals
Conference on November 27-28, 2005 at the San Francisco Marriot. Mr. Peter
Akerley, President and C.E.O. and Mr. Ken MacDonald, Vice President and C.F.O.
will be in attendance. Mr. Akerley will be presenting at the conference,
providing an overview of activities at 4 pm on Monday November 28th.
Qualified Person
----------------
This press release has been prepared under the supervision of Michael
Corey, P.Geo., who serves as the qualified person under National Instrument
43-101. All samples are assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In
addition to SGS Laboratory internal checks, Erdene Gold incorporates a QA/QC
sample protocol utilizing prepared standards, sample splits and duplicates.
About Erdene Gold Inc.
----------------------
Erdene Gold Inc. is a diversified mineral exploration company focused on
Mongolia with over 20 mineral exploration projects that include 71 licenses
and cover approximately four million acres. Significant projects include the
Zuun Mod molybdenum-copper project where resource definition drilling is now
underway, the Central Basin Uranium Projects (International Uranium
Corporation Joint Venture), the Ikh Tal-Erdenet Mine copper exploration
program where high priority targets have been identified adjacent to
Mongolia's largest mining complex, the Tsenkher Gol Gold project targeting a
granite hosted disseminated gold target, the Galshar coal program, where
drilling is underway to determine coal quality and thickness and the Temuujin
copper-gold porphyry project in the South Gobi Mineral Belt. Erdene is well
funded with a working capital position of approximately CDN$5.7 million as of
September 30th, 2005. Erdene has 27,269,635 common shares issued and
outstanding and a fully diluted share position of 32,188,910 common shares.
Erdene Gold Inc. currently trades on the TSX Venture Exchange under the symbol
ERD.
Forward-Looking Statements
--------------------------
Certain information regarding 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, guidance or other statements that are not
statements of fact. Although the Company 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. The Company
cautions that actual performance will be affected by a number of factors, many
of which are beyond the Company's control, and that future events and results
may vary substantially from what the Company currently foresees. Factors that
could cause actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration results,
continued availability of capital and financing and general economic, market
or business conditions. The Company's 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 subject to change after
that date.
For additional information visit Erdene's website at www.erdene.com or
contact the company via email at info(at)erdene.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
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