Erdene Resource Development (TSX:ERD) announced on Wednesday a new gold discovery 3.5 km north of its Bayan Khundii project in Mongolia.
According to the company, drilling highlights include hole AAD-58 that returned 45 metres of 5.97 g/t gold beginning at 10 metres down-hole, including 1 metre of 82.5 g/t gold within 8 metres of 27.1 g/t gold.
The Bayan Khundii gold resource includes 521,000 ounces of 3.16 g/t gold measured and indicated and 103,000 ounces of inferred resources at 3.68 g/t gold.
A significant exploration program is planned for Q1 2021, Erdene said in a press release.
“The Dark Horse prospect has been established as the most significant zone of gold mineralization since our discovery of the Bayan Khundii gold deposit,” said Peter Akerley, Erdene’s President and CEO.
The phase II Dark Horse drill program was completed in early December 2020 with an additional 3,085 metres drilled in 14 holes. In total, Erdene drilled 4,660 metres in 25 holes in 2020.
Bayan Khundii deposit is located in southwestern Mongolia, within the Khundii Gold District, approximately 16 kilometres south of the Altan Nar deposit. A Pre-Feasibility Study (PFS) for the deposit suggests an average annual gold production of 61,000 ounces, and 45,300 ounces of gold and 205,000
ounces of silver.
Midday Wednesday, Erdene’s stock was up 8% on the TSE. The company has a C$124 million market capitalization.