Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) said its recently completed 12-hole drill program at its 100% owned Zuun Mod molybdenum-copper porphyry project in Mongolia confirms the continuity of the high-grade deposit core and demonstrates the potential for large-scale expansion of mineralization.
Five holes, totaling 2,476 metres (m), were drilled to confirm continuity of higher-grade mineralization in the central part of the deposit and to expand the continuity of indicated resources at the periphery of the deposit. Another seven holes, totaling 1,619m, tested targets across the greater Zuun Mod porphyry complex.
Hole ZMD-131 intersected a very wide zone of mineralization, returning 374m averaging 0.053% Mo and 0.072% Cu, with multiple zones averaging greater than 0.080% Mo, including a 28m interval averaging 0.140% Mo and 0.121% Cu. The company is studying the potential of higher-density drill spacing to refine the block modelling of higher-grade zones.
“Recent exploration at the Zuun Mod project, one of Asia’s largest undeveloped molybdenum-copper deposits, demonstrates the potential to significantly increase the scale of resources,” Peter Akerley, Erdene’s president and CEO, said in a statement.
“Results from multiple drill holes along the current resource boundary expanded mineralization and intersections within the core of the deposit exceeded the average block grades in the vicinity. Additionally, the discovery of resource-grade mineralization in an exploration hole 1.7 kilometres north of the deposit further demonstrates the upside to this large molybdenum-copper complex, which remains open in all directions.
“Mongolia’s location, next to the largest molybdenum consumer, as well as its rapidly improving infrastructure, support the development potential of Zuun Mod. Additionally, the importance of molybdenum and copper as critical minerals supporting the green transition adds further impetus for development,” added Akerley.
All four holes on the periphery of Zuun Mod’s indicated resources intersected resource-grade mineralization ranging in thickness from 40 to 187 metres. Additionally, an exploration hole, ZMD-139, located 1.7 kilometres north of the main molybdenum orebody intersected a significant interval of molybdenum mineralization, hosted by porphyritic granodiorite, typical of the Zuun Mod porphyry complex. No drilling has been carried out between the Zuun Mod deposit and this hole, opening up a large area of potential expansion.
The Zuun Mod molybdenum-copper project is located in Bayankhongor Province, Mongolia, 180 kilometres northwest of a major mining district and the border with China, the world’s largest copper and molybdenum consumer and steel producer.
Erdene is a Canada-based resource company focused on the acquisition, exploration, and development of precious and base metals in underexplored and highly prospective Mongolia.
Contact the author at jon.hopkins@proactiveinvestors.com