Erdene up 22% after drilling 68 metres of 2.0 g/t gold in 170 metre step-out hole

Michael Allan McCrae | October 18, 2016 | 3:29 pm
Eredene Resource’s Bayan Khundii Gold Project, looking northeast from Westridge. Image from Erdene.

Halifax-based Erdene Resource (TSE:ERD) intersected 68 metres of 2.0 g/t gold in 170 metre step-out hole at its Bayan Khundii gold project in southwest
Mongolia.

The company traded up to 22% to 52 cents per share.

Erdene highlighted some of the findings:

  • New zone discovered under shallow cover, 170 metres north of Striker Zone (hole BKD-60)
    • Includes 30 metres of 3.0 g/t gold near the top of the hole
    • Consistent gold mineralization beginning at 20 metres, averaging 123 metres of 1.3 g/t gold
    • High-grade intervals with visible gold, up to 19 g/t gold over one metre
    • Confirms significant gold mineralization continues north of the Striker Zone under younger cover
  • Striker Zone continuity strengthened with 90 metres of 2.5 g/t gold to bottom of hole at 126 metre depth in hole BKD-57, includes 31 metres of 6.8 g/t gold
  • Western extension of Striker Zone confirmed under cover with 31 metres of 1.0 g/t gold and 5 metres of 2.2 g/t gold in holes BKD-59 and BKD-53, respectively
  • New zone intersected in southwest Striker Zone in hole BKD-55 with 24 metres of 1.3 g/t gold

Read the full news release.