Overview
Ulaan Gold Project – The Ulaan project is characterized by a vertically extensive high grade gold discovery located ~300 metres west of the Khundii license boundary. The Ulaan exploration license area geology is characterized by a large (over 4 kilometers in diameter) hydrothermal alteration zone which is interpreted to represent the upper levels of alteration associated with deeper intrusive/ porphyry event. The epithermal gold deposits and prospects are situated adjacent to this alteration zone and extend easterly across the Khundii mining license, hosting Ulaan, Bayan Khundii and Dark Horse Mane gold deposits as well as the Greater Dark Horse gold prospects.
In June 2021, the Company completed the maiden gold exploration program in the southern portion of the Ulaan license, reporting a significant new gold discovery just 300 meters west of the Bayan Khundii Deposit. Results to date, including follow-up drilling in Q2 2022, have confirmed a significant gold discovery at Ulaan SE.
Multiple drill holes have returned hundreds of meters (up to 354 meters) of gold mineralization, often ending in mineralization, over an area 200 meters by 250 meters. Gold mineralization begins approximately 80 meters from surface with anomalous gold intersected as shallow as 4 meters depth (UDH-18) and remains open along strike to the west/northwest and at depth.
Gold grades up to 156 g/t are related to intense quartz ± hematite veins and stockwork zones enveloped by the same gold bearing silicified, white mica altered lapilli tuff sequence which hosts Erdene’s Bayan Khundii epithermal gold deposit, located just east on the Khundii mining license. Structural controls are also similar with northwest striking, southwest dipping veins hosting the gold and intensifying adjacent to bounding structures and/or feeder conduits typically oriented northeast or north. Gold mineralization, particularly the low-grade envelope, also appears to be partially controlled by lithology with low permeability silicified ash tuffs focusing fluid flow and coarser lapilli tuffs acting as a preferred host to mineralization, stratigraphically dipping to the northwest.
Highlight interceptions at Ulaan SE since the initial discovery include:
- UDH-10: 40 meters of 3.8 g/t gold within 184 meters of 1.3 g/t gold
- UDH-14: 216.6 meters of 1.1 g/t gold, including 5 meters of 19.6 g/t gold within 34 meters of 5.4 g/t gold
- UDH-21: 77 meters of 3.2 g/t gold, including 27 meters of 8.7 g/t gold, including 1 meter of 156.5 g/t gold within 335 meters of 1.1 g/t gold
- UDH-22: 65 meters of 3.1 g/t gold within 152 meters of 1.7 g/t gold
- UDH-35: 41 meters of 8.1 g/t gold, including 3 meters of 68.2 g/t gold
Together with the Bayan Khundii and Dark Horse Mane gold deposits, results from drilling at Ulaan SE demonstrate the potential scale of mineralization within the nearly 4,000-hectare Khundii-Ulaan Hydrothermal system, which extends from Ulaan over 10 kilometers to the northeast onto the Khundii license.
Furthermore, the central and northern portion of the Ulaan license hosts a porphyry copper prospect primarily based on a broad (5km by 4km) zone of phyllic (quartz-sericite-pyrite) alteration at surface, with characteristics thought to be related to a porphyry intrusion at depth. Rock chip and stream sediment geochemical sampling identified anomalous concentrations of gold, copper and molybdenum in the surrounding area, and geophysical surveys have produced a number of follow-up targets for deeper drilling.