Program Expansion At The Ulaan Feeder Zone

HALIFAX - Erdene Resource Development Corporation reported on the drill program at Ulaan Southeast, located 300 meters west of the construction ready Bayan Khundii Gold Project in southwest Mongolia. This program expanded known mineralization at the Ulaan SE discovery to the west and at depth, and intersected an interpreted high-grade, gold bearing “feeder” structure. Follow-up exploration at Ulaan SE is currently underway.

“Ulaan drilling has returned very high grade zones in the feeder structure as well as exceptionally thick zones of mineralization, exceeding 300 meters, which remain open, in the core of the discovery,” said Peter Akerley, President and CEO. “This newest Khundii District discovery is interpreted as the western extension of the Bayan Khundii deposit, demonstrating the resource expansion potential from deeper exploration in the District. We launched a follow-up exploration program. The outcome of this program, as well as the results from the recently completed regional reverse-circulation (“RC”) program, will focus our exploration work for the balance of 2022,” continued Mr. Akerley. “We are confident that we are well on our way to achieving our two million ounce gold equivalent resource target by the end of the year.”

The primary objectives of the Q2 2022 Ulaan SE drilling program were to test interpreted high-grade feeder zones along bounding or intersecting structures in the northern portion of the Ulaan SE discovery, and to test mineralization at depth. Six new holes, as well as five hole-extensions, totaling 2,463.7 meters, were completed as part of the Q2 2022 Ulaan SE drilling program.

The Q2 2022 program at Ulaan SE confirmed a zone of high-grade mineralization interpreted to be associated with intersecting or bounding structures and possibly a feeder zone. Drill hole UDH-35 returned the highest average grade interval intersection to date at Ulaan SE, with 41 meters of 8.1 g/t gold starting 187 meters downhole. Drill hole UDH-36 extended high-grade mineralization further west from the discovery area, intersecting one of the broadest zones of mineralization to date in Erdene’s Khundii Gold District. Hole UDH-53 was drilled to confirm extension of the feeder zone at depth and intersected 27 meters of 3.47 g/t gold, including three one-meter intervals greater than 10 g/t gold (up to 35.5 g/t gold), and ended in mineralization.

Step-out drill holes and hole extensions continue to expand the area of known mineralization, which remains open to the west and at depth. Drillhole UDH-37 intersected the targeted gold mineralized tuffaceous host lithology, broadening the potential for gold mineralization as exploration progresses westward further into the core of the Ulaan license area. UDH-38 complimented the results of UDH-37, extending gold mineralization westward; however, this drillhole also indicates shallower gold mineralization, with gold mineralization beginning 42 meters down hole. Hole extensions (an additional 100 to 200 meters, to total depths of 350 to 450 meters) demonstrated that gold mineralization extends over 400 meters vertically. Mineralization remains open at depth with two of the holes extended to 450 meters ending in mineralization.

The results to date demonstrate a broad and thick zone of mineralization over a vertical depth in excess of 400 meters, that remains open at depth and to the west. Analysis of multi-element geochemical data, complimented by downhole magnetic susceptibility readings, are introducing correlations previously unrecognized at Ulaan SE. These datasets indicate that increased potassium concentrations (after pervasive adularia-Kspar alteration) in conjunction with low magnetic susceptibility readings, are strongly correlated with the targeted gold bearing tuffaceous host package. 3D modeling of these combined variables will serve as important target vectoring tools for future drilling at Ulaan SE. A follow-up drilling program has been designed to further test continuation of mineralization to the west and at depth, including further tracing of the high-grade mineralization identified to date which has been interpreted as a potential structurally controlled feeder zone.

The Ulaan SE gold target is a blind-top discovery identified in Q3 2021. The prospect is characterized by hundreds of meters of gold mineralization (up to 354 meters continuously in a single drill hole) over an area 200 meters by 250 meters. Gold mineralization begins approximately 80 meters from surface and remains open along strike to the west/northwest and at depth. Intervals include 152 meters of 1.7 g/t gold in UDH-22 (from 85 meters) and 77 meters of 3.2 g/t gold in UDH-21 (from 115 meters), as well as the more recent results. Similar to the Bayan Khundii gold deposit, approximately 300 meters east, the mineralizing event is characterized by exceptionally high-grade quartz ± hematite and adularia veins and stockwork zones enveloped by the same gold bearing, silicified, white-mica altered lapilli tuff sequence.

The southern portion of the Ulaan license has areas of anomalous gold-in-soil over an area 3.5 kilometers by 1 kilometer. The underlying geology and alteration appears to be analogous to the gold mineralization at Ulaan Southeast and Bayan Khundii, namely tuffaceous units with white mica and silica alteration. A series of holes have been drilled to test high priority targets, for which the results are pending and expected in early Q3 2022.