Khundii Minerals District

Overview

Erdene’s projects are located in the eastern portion of the Central Asian Orogenic belt. This belt hosts several giant gold and gold-copper deposits including, Kumtor (14 million ounces Au), Almalyk (25 million ounces Au), Muruntau (140 million ounces Au) and Oyu Tolgoi (62 million ounces Au). Deposits on this belt, including orogenic, porphyry and epithermal types, are typically associated with the same major metallogenic and tectonic processes related to late Paleozoic arc structural environments. Such deposits often occur in clusters where transform faults are the centres for volcano-plutonic activity, resulting from the offset of regional faults, and potentially associated with a mantle plume developed during the subduction processes. Throughout the belt, NE transform structures play a major role in gold and copper deposit genesis. 

Over the past decade, Erdene has emerged as the premier explorer in southwestern Mongolia with multiple greenfield discoveries. The Company’s exploration strategy is built around research into the controlling features of the major deposits, including those noted above, and evaluation of all Paleozoic Arc terranes in Mongolia. This has resulted in our focus on the 400-kilometer long Trans Altai Terrane (“TAT”) based on the geologic and structural setting and fertility. Exploration work in the eastern part of the ET has identified multiple high priority, proprietary target areas. To date, exploration of the highest priority targets has resulted in establishing three separate gold resources within the area now known as the Khundii Minerals District. These include the greenfield discoveries of:

– Bayan Khundii (“BK”) gold-silver deposit;

– Altan Nar (“AN”) gold-polymetallic deposit;

– Dark Horse (“DH”) gold deposit;

and along with the discovery of numerous Au and Cu prospects and showings (e.g. Altan Arrow, Khuvyn Khar and Oyut Khundii) have also been discovered while a fourth mineral resource was established at the Zuun Mod Mo-Cu porphyry deposit approximately 35 km east of BK. The Khundii Minerals District includes the full spectrum of arc related mineral systems, porphyry copper and copper-molybdenum, intermediate sulfidation, high sulfidation and low sulfidation often associated with the same favorable regional structural trends. 

Based on encouraging results to date, Erdene considers the potential for additional gold and copper discoveries in the Khundii Minerals District to be excellent and continues its systematic evaluation, exploration and development of the newly discovered mineralized district. 

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.