Initial Drill Results Confirm Copper-Gold Sulfide Zone at Erdene's Nomin Project
HALIFAX, NOVA SCOTIA -- (Marketwire) -- 07/06/11 -- Erdene Resource Development Corp. ('Erdene') (TSX: ERD), is pleased to announce initial drilling results from its wholly owned Nomin copper-gold project in southwestern Mongolia.The second hole of the program (TND-02) intersected a zone of massive sulphide mineralization at a vertical depth of approximately 60 metres. An8 metre interval from 82 to 90 metres returned 1.8% Cu and 0.71g/t Au, including 2 metres of 6.04% Cu and 2.4 g/t Au.
As part of Erdene's 2010 regional exploration program, several small-scale relic mineral workings were discovered within the Nomin exploration license, located approximately 35 km west of Erdene's Zuun Mod license. These workings are characterized by shallow hand dug pits with associated waste rock debris. Samples collected during the 2010 field season by Erdene geologists returned highly anomalous copper and gold values. Drilling commenced on June 13, 2011 targeting geochemical and geophysical (magnetic and IP chargeability) anomalies related to this zone of mineralization.
Initial drill results for the first two holes in the vicinity of the relic pits has confirmed copper and gold mineralization at shallow depths. The first hole of the program (TND-01) intersected 10 metres of 0.1% copper from 76 to 86 metres within propylitically altered granodiorite. The second hole of the program (TND-02) intersected a zone of massive sulphide mineralization at a vertical depth of approximately 60 metres. An 8 metre interval from 82 to 90 metres returned 1.8% Cu and 0.71g/t Au,including 2 metres of 6.04% Cu and 2.4 g/t Au.TND-01 was drilled vertically while TND-02 was drilled from the same collar location using a 50 degree angle, successfully transecting the interpreted subsurface continuation of the mineralized pits. Initial interpretation suggests two or more steeply dippingmineralized zones. Threeadditional shallow holes have been drilled along trend of the pits which extend over a strike length of 250 metres.Assay results for these additional holes are pending. Future drilling will test the new zones along strike and at depth.
Qualified Person
J.C. (Chris) Cowan, P.Eng. (Ontario) is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release. All samples have been assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the company incorporates a QA/QC sample protocol utilizing prepared standards, blanks and duplicates.
About Erdene
Erdene Resource Development Corp. is a diversified resource company with multiple projects in Mongolia, Canada, and the USA, at various stages of development, from exploration to production; all projects are focused on high-growth commodities. In Mongolia, Erdene's principals have over 14 years of experience in the country's resource sector. A dedicated technical and management team have assembled a strong portfolio of molybdenum-copper, copper-gold, and coal projects throughout the country. These projects, and our in-country experience, provide the Company with a unique opportunity to participate in this period of unprecedented economic growth in Mongolia. This growth is fuelled by the discovery and development of a number of World-class mineral projects that are transforming the country into one of Asia's natural resource capitals.
Erdene has a current working capital position of approximately $5.2 million, including that of its controlled subsidiary Advanced Primary Minerals Corp., with 90,323,377 common shares issued and outstanding and a fully diluted position of 97,841,377 common shares.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date.The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
Contacts:
Erdene Resource Development Corp.
Peter C. Akerley, President and CEO
Ken W. MacDonald, Vice President Business Strategy and CFO
(902) 423-6419
info@erdene.com
www.erdene.com
Renmark Financial Communications Inc.
Barbara Komorowski: bkomorowski@renmarkfinancial.com
Dustin Buenaventura: dbuenaventura@renmarkfinancial.com
(514) 939-3989 or (416) 644-2020
www.renmarkfinancial.com