Bayan Khundii (“Rich Valley”) is located within the Tian Shan Copper-Gold Belt in southwest Mongolia and was discovered in 2015 when a rock-chip sampling program revealed multiple quartz veins that returned high-grade gold values. Erdene followed up the initial work with a comprehensive exploration program that has included geological mapping, soil geochemical surveys, surface rock chip sampling, a ground magnetic survey, induced polarization surveys, and the completion of more than 38,000 metres of diamond drilling.
The Bayan Khundii gold mineralization is associated with quartz adularia veins and breccias and is disseminated within the altered host rocks. Visible gold has been identified in several drill holes as irregularshaped grains, but the gold is generally fine grained. Drilling has intersected high gold grades (with up to 306.0 g/t gold over 1.0 metre intervals) within broad mineralized zones containing up to 131.0 metres of 3.9 g/t gold (including 80.0 metres of 6.0 g/t gold).
A maiden resource estimate was published in September 2018 which outlined Measured and Indicated Resources of 17.8 Mt grading 1.0 g/t gold for 579 kozs of gold (0.2 g/t cut-off). The Inferred Resource estimate is 12.7 Mt at 0.6 g/t gold for 225 kozs (0.2 g/t cut-off). Initial metallurgical test work has been positive with 91% to 99% gold recovery using gravity concentration and cyanidation methods.
The resource and metallurgical results were included in a Preliminary Economic Assessment for the Khundii Gold Project comprised of its Bayan Khundii and Altan Nar deposits.
Erdene closed a non-brokered private placement for gross proceeds of C$2.0 million. Proceeds will be used towards the completion of the Pre-Feasibility Study, mining license applications and third quarter exploration.
Erdene announced the start of a Pre-Feasibility Study and drilling program, results from which will be incorporated into an updated mineral resource estimate.