Erdene Announces Private Placement; Drilling to Commence on the
Altan Nar Gold Project
HALIFAX, NOVA SCOTIA--(Marketwired - Apr 21, 2014) - Erdene
Resource Development Corp. (TSX:ERD) ("Erdene" or "Company"), is
pleased to announce it intends to issue, by way of a non-brokered
private placement, up to 4,062,500 units at a price of $0.16 per
unit for gross proceeds of up to $650,000 ("Private Placement").
Each unit will consist of one common share of the Company and
one-half of one common share purchase warrant, with each whole
common share purchase warrant ("Warrant") entitling the holder to
purchase one common share of the Company at a price of $0.24 for a
24 month period from the closing date. If the closing price of the
Company's common shares trading on the Toronto Stock Exchange
("TSX") is $0.36 or higher for 30 consecutive trading days, the
Company may, in its sole discretion, accelerate the expiry period
of the Warrants by providing written notice of such acceleration by
way of a news release ("Acceleration Notice"), such that the
exercise period of the Warrants will expire on that day which is 30
days from the date of the Company's Acceleration Notice.
Net proceeds of the Private Placement will be used for
exploration of the Company's metal projects in Mongolia, including
drilling at the Company's 100% owned Altan Nar gold-polymetallic
project, to commence in late April. The Private Placement is
expected to close on or before May 2nd, 2014, and is subject to
certain conditions, including, but not limited to, the receipt of
all necessary approvals including the approval and acceptance by
the TSX. All securities to be issued pursuant to the Private
Placement will be subject to a four month hold period from the
closing date. Finder's fees may be payable on a portion of the
financing.
Altan Nar Gold Project - Drill Program
Altan Nar exploration results, announced on January 22nd, 2014
included multiple, high grade gold, silver and base metals zones
(click here for Erdene's news release). Follow-up drilling is
expected to commence in late-April and will include 10 drill holes
totaling approximately 1,000 m. The drill program will test
continuity of these high priority targets, some of which have yet
to be drill tested. Erdene field crews were mobilized to site the
first week of April. Detailed surface work is underway, including
higher density geochemical sampling, mapping, and a an expanded
induced polarization survey. This work will provide a greater
understanding of the extent of the multiple mineralized structures
identified to date and provide a stronger base for designing a more
extensive follow-up resource delineation drill program.
Targets included in the drill program will be the Discovery
Zone, Union North, Union South, Maggie, Northbow and Southbow. The
following section and enclosed maps provide additional details on
each target.
Discovery
Zone
Drilling and trenching over the Discovery Zone has demonstrated
vertical and lateral continuity of gold-polymetallic mineralization
along a 400 m strike length and to a maximum depth of 230 m. In the
fourth quarter of 2013, three continuous trenches over a 250 m
strike length returned 44 to 50 m of greater than 1 g/t gold. The
prospect is characterized by near-surface, sub-vertical zones of
gold and silver mineralization up to 50 m in width with high grade
zones that include intervals up to 29 m averaging 4.3 g/t gold and
24.1 g/t silver. This prospect has received the majority of the
drilling to date albeit at shallow levels with the deepest hole
ending in 5 m of 4.7 g/t gold at 230 m depth.
Union North
Located 1.3 km northwest of the Discovery Zone, Union North has
been tested by a series of four, east-west oriented trenches and a
single drill hole. An intensely mineralized system has been
outlined within a 150 m by 150 m area that is open along strike and
at depth. The target is centered on high grade mineralized
quartz-sulfide breccia shoots with trenches returning up to 19 m of
8.9 g/t gold, 66 g/t silver, 7.7% lead and 2.5% zinc, including 7 m
of 20.2 g/t gold, 138 g/t silver, 17.3% lead and 5.3% zinc. The
single drill hole returned 47 m of 1.3 g/t gold, including 9 m of
4.3 g/t gold, 12 g/t silver, and 1.7% combined lead-zinc.
Union South
The Union South prospect is located approximately 550 m south of
Union North. A trench intersected a high grade zone that returned
10 m of 4.5 g/t gold, 8.9 g/t silver and 2.2% lead. This trench is
located 120 m north of a drill hole which returned 10 m of 1.7 g/t
gold including 4 m of 3.7 g/t gold and a second zone of 11 m of 0.8
g/t gold.
Maggie
The Maggie prospect is located approximately 1 km north of the
Discovery Zone and 700 m east of the Union North prospect. A single
trench uncovered a well mineralized zone, 38 m wide and hosted by
an altered andesite cut by two, barren, post-mineralization dykes
(7 m and 2 m wide). Excluding the 9 m of post-mineralization dyke,
the central mineralized zone returned 17 m of 3.4 g/t gold, 4.9 g/t
silver and 1.4% combined lead-zinc. The target is open along
strike, and has not been drill tested.
Northbow and
Southbow
The Northbow prospect, located 600 m to the west of Union North,
is defined by a north-south trending, strong gradient-IP
chargeability anomaly. This feature extends 800 m south where it
widens and intensifies into the sediment covered Southbow prospect.
Recent trenching on the northern edge of sediment cover returned 9
m of 1.3 g/t gold, 6.6 g/t silver and 1.3% combined lead-zinc.
Results from Northbow are significant in that they are the first
confirmation that gold mineralization is associated with the
Southbow geophysical anomaly, the largest and most intense anomaly
identified to date on the Altan Nar property. The Northbow and
Southbow targets have not been drill tested.
Qualified Person
J.C. (Chris) Cowan, P.Eng. (Ontario), VP Asia for Erdene, 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.
About Erdene
Erdene Resource Development Corp. is a Canada-based resource
company focused on the acquisition, exploration, and development of
base and precious metals in underexplored and highly prospective
Mongolia. For further information on the Company, please visit
www.erdene.com. Erdene has 70,672,112 issued and outstanding common
shares and, a fully diluted position of 82,111,301 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
To view the maps accompanying this press release please click on
the following link:
http://media3.marketwire.com/docs/ERD0421.pdf
Erdene Resource Development Corp.Peter C. Akerley, President and
CEOErdene Resource Development Corp.Ken W. MacDonald, Vice
President Business Strategy and CFO(902)
423-6419info@erdene.comwww.erdene.comTwitter:
https://twitter.com/ErdeneRes
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