Erdene Begins Trading on the TSX
HALIFAX, Dec. 14 /CNW/ - Erdene Gold Inc. (TSX:ERD) today announced that
it has intersected a 49 metre thick coal seam at the Company's Galshar coal
project located in southeastern Mongolia, 65 kilometres east of a short-line
railway with direct access to the Trans-Mongolian Railway into China. Erdene
has been carrying out a comprehensive evaluation of coal opportunities in
Mongolia utilizing its proprietary mineral occurrence and geographic
information system (G.I.S.) databases.
"We are excited by the early results and look forward to continuing to
define the resource potential at Galshar and expanding our energy base," said
Peter Akerley, President and CEO. "During the past year our company has been
evaluating opportunities in Mongolia that are anticipated to benefit from the
surging power demands of China, including uranium and coal resources. China's
shortage of bulk mineable, open pit coal deposits providing safe, low-cost
thermal coal continues to fuel interest in Mongolian coal opportunities, where
location relative to rail is a key economic consideration."
Erdene's initial drilling of the Galshar coal project intersected a 49
metre coal seam in the central part of an area where previous drilling
intersected coal seams over a three kilometer strike length that is open to
the northeast. Erdene's property covers most of this area and surrounds an
open pit coal mine which supplies coal to local towns. The initial Erdene hole
(CDD-01) was collared approximately 300 metres northwest of the existing mine.
Hole CDD-01 intersected coal mixed with shale and clay beginning at 25
metres with continuous coal from 54 metres through 103 metres. The vertical
hole was terminated at 107 metres in mixed coal and clay-rich sediments.
Visual determinations suggest the quality of the coal varies from black, low
to medium luster coal, to massive brown coal, over intervals ranging from 1
to 14 metres. Historical testing, as well as results from recent Erdene grab
samples taken from the operating mine, indicate an average heating value of
5900 kcal/kg (10,600 BTU/lb). The coal seam is hosted in a northeast trending
basin open to the northeast and bounded to the southwest by a fault which is
interpreted to have shifted the coal seam to a depth greater than 100 metres.
This interpretation is supported by a second hole (CDD-02), collared 550
metres southeast of CDD-01, drilled to 91.3 metres, that failed to intersect
any significant coal. Previous drilling indicates that the coal beds in the
Galshar coal project area are relatively flat lying with coal seam thicknesses
of 5 to 30 metres over a strike length of three kilometres.
Quality analysis and evaluation is now underway to determine the thermal
properties of the Galshar coal and the potential for the project to support
domestic and export coal markets. A compilation map and images of the coal
mine can be viewed on the Erdene website at www.erdene.com.
In addition to the Galshar coal project, Erdene has been carrying out a
regional coal evaluation program throughout 2005 utilizing its extensive
mineral occurrence database that contains geologic information and exploration
data for over 240 coal occurrences. The Company has identified multiple
targets which are now being evaluated for potential acquisition. The Company's
energy related property interests, including its coal and uranium assets, are
held in the Company's wholly-owned energy subsidiary in Mongolia, Erdene
Energy XXK.
TSX Listing
Erdene Gold Inc. today began trading its Common Shares on the Toronto
Stock Exchange ("TSX"). The company's shares will continue to trade under the
symbol "ERD".
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, 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 programs are 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 $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.
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 Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this news release.
Erdene Resource Development Corporation news
Investor announcements, newest first.