Overview
Altan Nar is a gold-polymetallic project, located 16 km north of the Company’s Bayan Khundii gold deposit. In March 2020, Erdene secured a mining license for Altan Nar from the Mineral Resource and Petroleum Authority of Mongolia (“MRPAM”). The Altan Nar mining license covers 4,669 hectares and, in addition to the Altan Nar gold-polymetallic deposit, includes Erdene’s Oyut Khundi copper prospect and Nomin Tal copper-gold prospect. The mining license is valid for an initial term of 30 years with the ability to extend to 70 years.
Altan Nar is an intermediate sulphidation, carbonate-base metal gold (“CBMG”) deposit that remains open at depth and along the system’s known 5.6 km mineralized trend. This deposit type includes prolific gold deposits such as Barrick Gold’s Porgera mine (Papua New Guinea), Rio Tinto’s formerly producing Kelian mine (Indonesia), Lundin’s Fruta Del Norte mine (Ecuador), and Continental Gold’s Buritica project (Colombia). CBMG deposits generally occur above porphyry intrusions in arc settings and may extend for more than 500 meters vertically.
Only a small portion of the Altan Nar license has been drill tested, and 90% of the NI 43-101 Mineral Resource prepared by RPM Global in 2018 is within 150 meters from the surface and largely contained within 2 of the 18 targets with all zones remaining open along strike and at depth.
To date, Indicated Mineral Resources have only been established for the Discovery Zone and Union North prospects. The remaining 16 early stage targets at Altan Nar appear very prospective and the Company intends to complete further drilling on the license to increase its understanding of the system. RPMGlobal calculated the mineral resource estimate for Altan Nar in May 2018 at an assumed gold price of US$1200/oz, establishing a mineral resource at cut-off of 0.7 g/t AuEq2 (see definition for AuEq2 in note 8 below) above pit and 1.4 g/t AuEq2 below the same pit shell. For further details on the Altan Nar mineral resource estimate, please see the Company’s Altan Nar Gold-Polymetallic Project NI 43-101 Technical Report dated March 29, 2021.
Altan Nar Resources
| Indicated Classification | Quantity
(Mt) | Gold Grade (Au g/t) | Gold (Koz) | Silver Grade
(Ag g/t) | Silver (Koz) | Zinc Grade (%) | Zinc (kt) | Lead Grade (%) | Lead (kt) | AuEQ (g/t) | AuEQ (koz) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oxide | 0.6 | 2.0 | 39.3 | 12.7 | 244.3 | 0.6 | 3.8 | 1.0 | 6.3 | 3.1 | 59.6 |
| Fresh | 4.4 | 2.0 | 278.4 | 15.0 | 2105.4 | 0.6 | 27.8 | 0.5 | 22.7 | 2.8 | 393.4 |
| Total | 5.0 | 2.0 | 317.7 | 14.8 | 2349.7 | 0.6 | 31.6 | 0.6 | 29.0 | 2.8 | 453.0 |
- The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr. Jeremy Clark who is a full-time employee of RPM and a Member of the Australian Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.
- All Mineral Resources figures reported in the table above represent estimates at 100% equity and are rounded to reflect the relative accuracy of the estimate. Figures may not sum due to rounding.
- Continuity of the Au occurrence and the upgraded zones for Ag, Pb, and Zn mineralization has been demonstrated with 17,921m of drilling.
- The Altan Nar resource contains the mineralized zones “Discovery Zone” and “Union North.” The resource is defined to a vertical depth of 150m, and 250m and 420m horizontally. Adjustments have been made for metallurgical recovery based on company’s preliminary testwork results which used flotation to separate Zn concentrates for Au + Ag and Pb. Based on years of testwork: 91% Au, 82% Ag, 86% Pb, and 72% Zn is assumed. It is assumed that all commodities have reasonable potential for economic extraction via open pit mining methods.
- The table above reports resources using a 0.7g/t Au cut-off for Oxide, and 1.4g/t Au cut-off for Fresh rock.
- Reporting at a 0.7 g/t AuEq cut-off and a 1.4 g/t AuEq below this pit shell. Cut-off parameters were selected based on an assumed price of USD $1,200/oz gold.
- Mineral Resources referred to above have not been subject to detailed economic analyses and, therefore, have not been determined to have economic viability.
| Indicated Classification | Quantity
(Mt) | Gold Grade (Au g/t) | Gold (Koz) | Silver Grade
(Ag g/t) | Silver (Koz) | Zinc Grade (%) | Zinc (kt) | Lead Grade (%) | Lead (kt) | AuEQ (g/t) | AuEQ (koz) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oxide | 0.8 | 1.8 | 43.3 | 7.5 | 183.7 | 0.6 | 4.3 | 0.9 | 6.5 | 2.6 | 64.2 |
| Fresh | 2.7 | 1.7 | 142.4 | 8.0 | 682.1 | 0.7 | 19.4 | 0.6 | 15.8 | 2.5 | 212.8 |
| Total | 3.4 | 1.7 | 185.7 | 7.9 | 865.8 | 0.7 | 23.7 | 0.7 | 22.3 | 2.5 | 277.1 |
- The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr. Jeremy Clark who is a full-time employee of RPM and a Member of the Australian Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code.
- All Mineral Resources figures reported in the table above represent estimates at 100% equity and are rounded to reflect the relative accuracy of the estimate. Figures may not sum due to rounding.
- Continuity of the Au occurrence and the upgraded zones for Ag, Pb, and Zn mineralization has been demonstrated with 17,921m of drilling.
- The Altan Nar resource contains the mineralized zones “Discovery Zone” and “Union North.” The resource is defined to a vertical depth of 150m, and 250m and 420m horizontally. Adjustments have been made for metallurgical recovery based on company’s preliminary testwork results which used flotation to separate Zn concentrates for Au + Ag and Pb. Based on years of testwork: 91% Au, 82% Ag, 86% Pb, and 72% Zn is assumed. It is assumed that all commodities have reasonable potential for economic extraction via open pit mining methods.
- The table above reports resources using a 0.7g/t Au cut-off for Oxide, and 1.4g/t Au cut-off for Fresh rock.
- Reporting at a 0.7 g/t AuEq cut-off and a 1.4 g/t AuEq below this pit shell. Cut-off parameters were selected based on an assumed price of USD $1,200/oz gold.
- Mineral Resources referred to above have not been subject to detailed economic analyses and, therefore, have not been determined to have economic viability.
Regional Targets
Multiple gold and copper targets.
- Indicated Resources at Altan Nar are located within Discovery and Union North Zones with Inferred Resources included at other prospects, including UN East, Union South, and Maggie.
- Over 30 high-priority targets outside the Altan Nar resource, including the Nomin Tal and Oyut Khundii gold-copper prospects.
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.
Latest Reports
-
NI 43-101 Technical Report for the Altan Nar Gold-Polymetallic Project
-
NI 43-101 Technical Report for the Preliminary Economic Assessment of the Khundii Gold Project
-
Altan Nar Gold Project – National Instrument 43-101 Mineral Resource Technical Report
-
Altan Nar NI 43-101 Technical Report, Q1-2015