Mineralization Expanded At Zuun Mod Molybdenum-Copper Project

HALIFAX - Erdene Resource Development Corporation reported on a recently completed 12-hole drill program at the Zuun Mod molybdenum-copper porphyry project in southwestern Mongolia, located within the Khundii Minerals District.

“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,” said Peter Akerley, President and CEO. “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.”

The 2023 Zuun Mod exploration program had two main objectives, both of which were accomplished: 1) Confirm continuity of the high-grade deposit core and expand mineralization on the periphery of the deposit defined in the 2011 NI 43-101 Resource Report prepared by RPMGlobal. 2) Demonstrate potential for large scale expansion of mineralization associated with the Zuun Mod Molybdenum-Copper deposit.

Five holes, totaling 2,476 metres, were drilled to confirm continuity of higher-grade mineralization in the central part of the deposit (ZMD-131) and to expand continuity of Indicated Resources at the periphery of the deposit (ZMD-132 to 135). A further seven holes, totaling 1,619 metres (ZMD-136 to 142) tested targets across the greater Zuun Mod porphyry complex.

Hole ZMD-131 intersected a very wide zone of mineralization, returning 374 metres averaging 0.053% Mo and 0.072% Cu, with multiple zones (28 to 74 metres wide) averaging greater than 0.080% Mo, including a 28-metre interval (252 to 280 metres) averaging 0.140% Mo and 0.121% Cu. Considering the strong continuity of molybdenum mineralization in the high-grade core, the Company is studying the potential of higher density drill spacing to refine the block modelling of higher grade zones.

All four holes on the periphery of Zuun Mod’s Indicated Resources (ZMD-132 to 135), intersected resource-grade mineralization (>0.04% Mo) ranging in thickness from 40 to 187 metres. Highlights include ZMD-135, located along the north-western edge of the deposit, which intersected 187 metres of 0.06% Mo, including multiple intervals, between 20 and 24 metres in width, grading greater than 0.08% Mo. Hole ZMD-133 which was mineralized throughout most of its 551 metre length, starting less than 50 metres from surface (46 to 551 metres, 505 metres averaging 0.032% Mo), included a two metre interval exceeding 0.2% molybdenum.

In addition, a exploration hole, ZMD-139, located 1.7 kilometres north of the main molybdenum orebody (currently defined by ZMD-135), intersected a significant interval of molybdenum mineralization, (12 metres of 0.067% Mo) 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. Geophysical resistivity data suggests a potential for continuity between these two areas.

Several of the exploration holes (ZMD-140 to 142) within the northern Zuun Mod porphyry complex returned anomalous copper mineralization (greater than 0.05% Cu). ZMD-140, drilled in an open area south of a previous copper discovery, returned three, two-metre intervals exceeding 0.2% copper, and ended at 244 metres depth in copper mineralization (greater than 0.1% Cu). The northern portion of the Zuun Mod porphyry complex hosts a large area of disseminated copper mineralization within several kilometres of phyllic and potassic altered quartz monzonite and granodiorite intrusives. Multiple copper mineralized zones have been previously intersected in wide-spaced drilling, including 34 metres of 1.3% copper and 9.24 g/t silver from 308 to 342 metres (hole ZMD-121). This zone remains untested at depth and to the southwest, where it trends under andesite cover. The copper mineralized intervals are characterized by hydrothermally altered intrusive breccias with potassic altered and mineralized fragments suggesting a deeper source of the mineralization..

Approximately one kilometre west of the main deposit area, three holes (ZMD-136 to 138) in a 600 metre east-west target area, returned anomalous molybdenum, copper and silver. ZMD-137 returned increasing molybdenum over the final 40 metres (greater than 0.01% Mo) and a silver zone higher in the hole (4 metres of 38.6 g/t Ag, starting 62 metres downhole). Hole ZMD-138 returned anomalous molybdenum and copper, including 2 metres of 0.068% Mo at 144 metres depth, and near surface copper mineralization (0.2% Cu at 4 metres downhole).