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Overview
In Q4 2020, Erdene announced that it exercised its option to acquire 100% of the Ulaan exploration license (Press release), located immediately west of Erdene’s Bayan Khundii gold project mining license. The Company has carried out limited exploration on the license since acquiring a 51% of the license in 2017, however, the property has demonstrated significant geological potential.
The Ulaan license covers approximately 1,780 hectares and hosts a large and intense phyllic style quartz-sericite-pyrite (QSP) alteration zone (about 3 kilometres in diameter) with characteristics of a porphyry copper and epithermal gold system. Ulaan lies at the southeast end of a major alteration zone, extending for over 10 kilometres to the northeast. This alteration trend has a central zone of intense secondary silica with a peripheral halo of sericite alteration and an outer zone of white mica and sericite, which hosts the Bayan Khundii gold deposit. This northeast-trending alteration area, which incorporates the Ulaan, Bayan Khundii and other mineralized targets in the area (including Erdene’s Dark Horse and Altan Arrow prospects), is associated with a regional structural dilational jog and associated major volcano-plutonic centre, along a northeast-trending transform fault. The various alteration and mineralization styles within the Ulaan target and the adjacent zone of alteration are consistent with a fertile magmatic island arc, with evidence for possible arc migration, and overlapping or telescoped mineralization along major structures.
In 2018, three wide-spaced holes were drilled, totalling 1,050 metres over a 1.3-kilometre area in the central portion of the license. These holes intersected volcanic to sub-volcanic rocks exhibiting propylitic to phyllic (quartz-sericite-pyrite or QSP) alteration with varying pyrite concentrations and locally low-level copper mineralization (100 to 300 ppm over 60 metres). A 700-metre, three-hole drilling program was completed in 2019. One hole intersected a broad zone of intense tourmaline-silica-sericite alteration that hosts localized gold-bearing quartz tourmaline breccia and breccia veins from 140 to 202 metres (end of hole). Anomalous gold-bearing intervals include 2 metres of 1.3 g/t gold, 4 metres of 0.29 g/t gold, 2 metres of 0.5 g/t gold, and 2 metres of 0.23 g/t gold.
The exploration license is in its seventh year of a maximum 12-year term. It can be converted to a mining license at any time before the end of the twelfth year by meeting the requirements prescribed under the Mineral Law of Mongolia.
In 2018, three wide-spaced holes were drilled, totalling 1,050 metres over a 1.3-kilometre area in the central portion of the license. These holes intersected volcanic to sub-volcanic rocks exhibiting propylitic to phyllic quartz-sericite-pyrite (QSP) alteration with varying pyrite concentrations and locally low-level copper mineralization (100 to 300 ppm over 60 metres). A 700-metre, three-hole drilling program was completed in 2019. One hole intersected a broad zone of intense tourmaline-silica-sericite alteration that hosts localized gold-bearing quartz tourmaline breccia and breccia veins from 140 to 202 metres (end of hole). Anomalous gold-bearing intervals include 2 metres of 1.3 g/t gold, 4 metres of 0.29 g/t gold, 2 metres of 0.5 g/t gold, and 2 metres of 0.23 g/t gold.
Peter Dalton, P.Geo. (Nova Scotia), Senior Geologist, Erdene Resource Development Corporation, is a Qualified Person within the meaning of National Instrument 43-101 and has reviewed and approved the scientific and technical information contained herein.
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Reports
No technical report available at time. See Erdene’s latest MDA disclosure for technical description of the project (click here)
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Illustrations
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Maps
