Erdene Resource Development Corp. has entered into an agreement to acquire a 51% interest in the Ulaan exploration license.
This new project is situated adjacent to the Company’s high-grade Bayan Khundii gold project, with the option to acquire up to 100%.
“Our Company is pleased to be able to provide our shareholders with additional exposure to prospective areas in the vicinity of our Bayan Khundii gold project,” said Peter Akerley, Erdene’s President and CEO. “Over the long-term we believe this area will become a significant gold mining district, and will continue to provide new precious and base metal opportunities. As such, we will continue seeking opportunities to further expand our land position in this very prospective area.
The Ulaan license not only provides immediate discovery potential for both high-grade gold and porphyry copper, but it also provides important strategic advantages as the district emerges into a producing gold camp. Exploration programs for the Ulaan license are now being formulated, with work to commence on this new property in Q4-2017.”
The Ulaan exploration license covers an area of approximately 1 780 ha, and is located immediately west of the Erdene’s Khundii license, which hosts the Bayan Khundii and Altan Arrow gold projects. The most prominent feature of Ulaan is a very large and intense alteration zone measuring approximately 3 km in diameter. This alteration zone has had only minimal mapping and sampling and a recently completed geophysical survey, but no history of below surface exploration, trenching or drilling. The license area is underlain by a variety of intrusive and extrusive igneous rocks of variable composition, including andesite, andesite porphyry, dacite, diorite and syenite. There are common intrusive dykes and plugs cross-cutting the volcanic units, and quartz veins have been observed locally within the Ulaan license.
The Company’s adjacent Bayan Khundii low-sulfidation gold system was overprinted on an earlier high-temperature alteration zone with alteration mineralogy and texture consistent with high temperature porphyry-style alteration. It is possible the silicic and advanced argillic alteration on the Company’s Khundii license may be related to the Ulaan hydrothermal system. In addition to the large alteration zone, the Property is also host to areas of Devonian tuffaceous volcanic rocks with geophysical signatures similar to those observed within the Bayan Khundii gold project. Exploration programs are being formulated with work to commence in late 2017.
Read the article online at: https://www.globalminingreview.com/finance-business/06092017/erdene-resource-sign-agreement-to-acquire-promising-ulaan-exploration-license/