In Q2-2015, Erdene conducted an initial exploration program on the southern portion of the Company’s 100%-owned Khundii exploration license in southwest Mongolia, including an initial rock-chip sampling program which revealed multiple very high-grade surface quartz veins that returned up to 4,380 g/t gold.
Since that time, drilling has revealed the presence of very high gold grades, with up to 2,200 g/t gold (70.7 oz/t) over 1-metre intervals, within broad mineralized zones, with up to 131 metres of 3.9 g/t gold, including 80 metres of 6.0 g/t gold. Since the first drill hole in Q4-2015, the Company has completed 255 diamond drill holes, totaling 42,656 metres at Bayan Khundii.
In addition to drilling, the Company has completed a comprehensive exploration program at Bayan Khundii that has included: geological mapping; soil geochemical surveys; additional surface rock chip sampling; a ground magnetic survey; gradient array and dipole-dipole induced polarization surveys. In addition to this work, a series of detailed follow-up studies have also been completed, predominantly on drill core and surface outcrop, including: petrographic and mineralogical analyses; a fluid inclusion study; SEM gold composition analysis; Short-Wave Infra-Red Analysis (SWIR); structural analysis; and overall petrogenetic analysis. Detailed studies indicate the mineralized zones can be characterized as low-sulphidation epithermal, quartz-illite-adularia type mineralization.
In Q3-2018, the Company announced a maiden Mineral Resource estimate for the Bayan Khundii deposit that incorporated the significant increase in the NI 43-101 Mineral Resource for the Company’s neighbouring Altan Nar project reported by the Company in May 2018, collectively referred to as the Khundii Gold Project.
Khundii Gold Project total Mineral Resource:
- 751,000 ounces gold at an average grade of 2.3 g/t gold, Measured and Indicated; and,
- 291,000 ounces gold at an average grade of 1.8 g/t gold, Inferred.
At a higher cut-off grade of 1.4 g/t gold, the Khundii Gold Project contains:
- 642,000 ounces gold at an average grade of 3.7 g/t gold, Measured and Indicated, including, 357,000 ounces gold at an average grade of 5.2 g/t gold at the Bayan Khundii deposit.
For further details on the Mineral Resource estimate, please refer to the Company’s September 18, 2018 news release by clicking here.
In Q1-2016 and Q3-2017, the Company completed metallurgical test work on Bayan Khundii master composites that indicated gravity concentration and cyanidation of the gravity tails yield very good overall gold recoveries, with 91% to 99% gold recovery on a range of gold grades from 0.7 g/t to 25.9 g/t gold.
The Bayan Khundii license has a 2.0% net smelter returns royalty (“NSR Royalty”) in favour of Sandstorm Gold Ltd. with a buy-back option to reduce the NSR Royalty to 1.0%.
Technical ReportsFeb 4, 2019N1 43-101 Technical Report for the Preliminary Economic Assessment of the Khundii Gold Project
Nov 1, 2018National Instrument 43-101 Mineral Resource Technical Report
Mar 26, 2018Bayan Khundii NI 43-101 Technical Report
Mar 23, 2017Bayan Khundii NI 43-101 Technical Report, Q1-2017