In Q3 2017, Erdene announced that it had acquired a 51% interest in the Ulaan exploration license, located immediately west of Erdene’s Bayan Khundii gold project license, with the option to acquire up to 100%.
Ulaan covers an area of approximately 1,780 hectares and is host to a very large, 3-kilometre diameter, intense alteration zone with characteristics thought to be related to a porphyry copper and epithermal gold system. Although Ulaan has no history of drilling or trenching, rock chip and stream sediment geochemical sampling has identified anomalous concentrations of gold, copper and molybdenum in the surrounding area, and recently completed geophysical surveys have produced a number of follow-up targets.
Under the terms of the Agreement, Erdene has acquired 51% of the outstanding shares of Leader Exploration LLC (“Leader”), a private Mongolian company that currently owns the Property, from Erdenechuluun.Z and Erdenekhuyag.Z for US$750,000. Provided Erdene spends a minimum of US$600,000 on work expenditures on the Property over the next three years, it has the right to acquire the remaining 49% of the shares of Leader from Erdenechuluun.Z or, at Erdene’s option, a portion of the Property, for the then fair market value of the Property or the portion to be acquired. Erdene may extend the option beyond three years by spending a minimum of US$100,000 per annum on work expenditures.
No technical report available at time. See Erdene’s latest MDA disclosure for technical description of the project (click here)