erd subscribers summit oct 2015

Download ERD Subscribers Summit Oct 2015

Post on 06-Dec-2015

214 views

Category:

Documents

1 download

Embed Size (px)

DESCRIPTION

ERD Subscribers Summit Oct 2015

TRANSCRIPT

  • Erdene Resource Development Corp.

    Developing a New Gold District in Southwest Mongolia

  • Certain information regarding Erdene ("the Company") 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 the

    Company 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. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company 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. All Mineral Resources for Altan Nar reported in this presentation represent estimates as at 19th February, 2015. RungePincockMinarco (RPM) have considered the costs,

    recoveries and dilutions expected by comparing with other similar deposits in the region and adjusted these by considering the location of the Project and the deposit characteristics. Mineral Resource grades are reported in accordance with the CIM Standards.

    Mineral Resource Estimates for Altan Nar are reported on a dry in-situ basis. Gold equivalent (AuEq) values are used in an effort to express the combined value of gold, silver, lead and zinc as a percentage of gold, and are provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually

    result. Calculations use metal prices of US $1,200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc.

    The Mineral Resource estimates for Altan Nar has been compiled under the supervision of Mr. Jeremy Clark who is a full-time employee of RPM and a Member of the Australian Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has

    undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure.

    Please refer to the NI 43-101 compliant mineral resource report for Altan Nar, dated March 24, 2015, entitled Altan Nar Gold Project, National Instrument 43-101 Mineral Resource Technical Report, available on the Companys profile at www.sedar.com, as well as the Companys news release dated March 31, 2015, for further details on the Altan Nar mineral

    resource estimate. Reported drill hole intervals at Altan Nar represent drill intersection widths with most holes drilled at a 45 degree angle. For the Discovery Zone, the orientation of the

    mineralization is near vertical and therefore true width is interpreted to be approximately 70% of the reported intervals. For Union North the mineralized zone has an interpreted dip of 45 degrees therefore true width is close to reported drill hole intervals. All holes in Union North were drilled perpendicular to the trend of mineralization.

    All other technical/geologic information contained herein has been reviewed and approved by Michael MacDonald, P.Geo. (Nova Scotia), Director of Exploration for Erdene, who is the Qualified Person as that term is defined in National Instrument 43-101. 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.

    The Company's 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 subject to change after that date.

    Unless otherwise indicated, all dollar values herein are in C$.

    Forward Looking Statements

    2

  • 3

    Prolific Tian Shan Gold Belt Includes some of the largest economic gold accumulations in the world Second only to Witwatersrand in South Africa for known gold resources

    Major Porphyry-Epithermal Gold Terranes and Deposits

  • 4

    Tian Shan Gold Belt 2014-15 Gold Production Highlights

    Polymetal buys Bakyrchik Gold

    Projects: US$618M

    Bayan Airag: First gold production in

    Q2-2014

    Centerra Gold advances 1.6 Moz Gatsuurt gold

    deposit

    Polymetal, 130,000 oz Au in concentrate (Mayskoye)

    refined in China

    China Gold production increases

    22% to 180,674 oz Au

    Eldorados three China gold mines produced >

    360,000 oz Au

    Kinrosss Kupol, 37% increase in production to

    ~750,000 oz Au

    Turquoise Hill (Rio Tinto), 589,000 oz Au

    produced

  • 5

    Southern Mongolia Mining Activity & Regional Infrastructure Build-Up

    Major Infrastructure Development With Access to Equipment & Manufacturing

  • 6

    4 Million Hectare Exploration Program Deep Seated Regional Structures

    Altan Nar

    Extensive Geochemical Soil Anomaly Discovery - Ancient Pit

    200 km 20 km

    2 km

    Lead Gold

    Southwest Epithermal Gold District Erdene Grassroots Discovery (100% Owned)

    2km

  • 7

    Erdene Projects - Emerging Gold District

  • 8

    Initial 43-101 Resource in 1Q15 Near-Surface Portion for First 2 of 18 Targets

    High-Grade System 1Q15 Drilling Includes 19 m @ 7.8 g/t Gold Equiv.

    Near-Surface 90% of Resources Within 150 m of Surface

    100% Ownership in Project No Related Royalties or Burdens

    Significant Exploration Upside Limited Drilling on Remaining 16 Targets Along 5.6 km Trend

    Carbonate Gold, Base Metal System Analogous to Some of Asias Largest Gold Deposits

    Altan Nar Gold Project Highlights Discovered 2011

  • 9

    Discovery Zone

    Highlights

    Union North

    500m

    Altan Nar Gold Project Initial Resource Estimate on First 2 of 18 Targets

    Extent of Initial 1Q15 Resource

    18 targets along 5.6 km trend Average vertical drilling depth: 105 metres Initial 1Q15 NI 43-101 Resource Estimate: 62% of total drilling confined to DZ and

    UN

    Resource open in all directions 88% drilling success rate intersecting

    target mineralized zones

    Exploration license in 6th of 12th year

  • 10

    7 m @ 7.1 g/t AuEq

    21 m @ 3.0 g/t AuEq

    16 m @ 7.1 g/t AuEq

    19 m @ 7.8 g/t AuEq

    16 m @ 8.7 g/t AuEq

    8 m @ 6.0 g/t AuEq

    94 m @ 1.0 g/t AuEq

    11 m @ 2.6 g/t AuEq

    15 m @ 3.7 g/t AuEq (T)

    Altan Nar Gold Project - Discovery Zone Intensely Mineralized, Near Surface, Open to North & at Depth

    Cross-section on following slide

  • Altan Nar Gold Project - Discovery Zone Cross Section

    11

    Continuous, High-Grade Mineralization From Surface and Open at Depth

    11 m @ 4.6 g/t AuEq

    16 m @ 8.7 g/t AuEq

    19 m @ 7.8 g/t AuEq OPEN

  • 12

    Altan Nar Gold Project - Union North Multiple Mineralized Structures Open in All Directions

    19 m @ 15.2 g/t AuEq (T)

    28 m @ 2.5 g/t AuEq (T)

    9 m @ 6.2 g/t AuEq

    5 m @ 7.7 g/t AuEq

    12 m @ 5.3 g/t AuEq

    9 m @ 7.6 g/t AuEq (T)

    12 m @ 5.4 g/t AuEq

    9 m @ 5.4 g/t AuEq

    6 m @ 6.7 g/t AuEq (T)

    11 m @ 6.7 g/t AuEq (T)

    30 m @ 1.4 g/t AuEq

    10 m @ 4.1 g/t AuEq

    3Q-2015 Drill/Trench Result

    Previous Drill/Trench Result

  • 13

    High-Grade, Near-Surface Resource Estimate on First 2 of 18 Priority Targets (open in all directions)

    500m

    Initial Resource Areas

    Note: See Forward Looking Statements on slide 2 for cautionary statements as related to the above mineral resource estimates

    Altan Nar Gold Project 1Q-2015 Initial Resource Estimate (First Two Deposits)

    Cut-Off Resource Tonnes Au Ag Pb Zn AuEq

    AuEq, g/t Category Mln g/t g/t % % g/t oz

    0.4 Indicated 4.55 0.80 8.2 0.40 0.51 1.39 203,800

    Inferred 4.23 0.65 8.3 0.31 0.45 1.17 158,800

    0.6 Indicated 3.37 1.03 9.4 0.47 0.57 1.71 184,900

    Inferred 3.02 0.85 9.4 0.35 0.51 1.43 139,300

    0.8 Indicated 2.50 1.33 10.4 0.51 0.60 2.06 165,300

    Inferred 2.00 1.19 10.1 0.38 0.54 1.81 116,500

    1.0 Indicated 1.85 1.71 11.1 0.54 0.61 2.47 146,800

    Inferred 1.50 1.49 10.4 0.39 0.54 2.12 102,100

    1.2 Indicated 1.50 2.03 11.5 0.56 0.60 2.80 134,400

    Inferred 1.17 1.77 10.7 0.39 0.53 2.41 90,600

    2.0 Indicated 0.82 2.99 13.5 0.63 0.63 3.83 100,900

    Inferred 0.61 2.47 11.8 0.45 0.58 3.18 62,500

  • 14

    Altan Nar Strategic Option Analysis Metallurgy, Process Options, Infrastructure

    Source: Blue Coast Research Ltd. Altan Nar Metallurgical Study, 3Q-2015

    Processing Flowsheet

    Assay Recovery Mass Au Ag Pb Zn Au

    (%) Ag (%)

    Pb (%)

    Zn (%) (%) (g/t) (g/t) (%) (%)

    Head Grade 100 2.5 16.1 0.81 0.67 - - - -

    Flotation

    Lead Concentrate 0.97 229.1 1,029 61.87 5.53 74.7 64 74.4 7.8

    Zinc Concentrate 0.84 20.2 242 5.78 50.28 5.7 13 6.0 61.3

    Sulphide Concentrate 4.01 6.2 14 0.82 0.52 8.4 3.5 4.1 3.1

    Combined 5.82 - - - - 88.8 81 84.5 72.2

    Cyanidation (48 hour) 100 - - - - 87.8 64 - -

    Strategic Option Analysis being completed by RPM(RungePincockMinaraco) Me