kennt ihr die? - habe auch ein JV mit Xstrata Coal - also auch ein Kohleprojekt....................
May 28, 2008 08:37 ET
Erdene Receives its First NI 43-101 Compliant Resource Estimate for Zuun Mod Molybdenum Project
Announces 453 Million Pounds of Contained Molybdenum Metal in Measured and Indicated Categories
HALIFAX, NOVA SCOTIA--(Marketwire - May 28, 2008) - Erdene Gold Inc. (TSX:ERD) today announced it has received its first National Instrument 43-101 (NI 43-101) compliant resource estimate for the Company's 100% owned Zuun Mod Molybdenum Project in Mongolia.
The Zuun Mod molybdenum deposit has a Measured and Indicated Resource of 467 million metric tonnes ("Mt") at an average grade of 0.044% molybdenum ("Mo"), at a cut off grade ("cog") of 0.03% Mo equating to 453 million pounds (Mlbs) of contained Mo metal. In addition, there are 141 Mt of Inferred Resources at an average grade of 0.039% Mo equating to a further 121 Mlbs of contained Mo metal. The Mineral Resource starts within 18 metres of surface and the mineralization remains open at depth.
"Today we have established Zuun Mod as one of the largest and most advanced pre-development molybdenum projects in the North Asia region, an area with the largest growth in molybdenum consumption globally," said Peter Akerley, President and CEO. "We are very excited to begin to advance the project through the feasibility stages and equally by the great potential we see for discovering additional deposits within this tremendously large mineralized complex."
An independent preliminary assessment is currently underway and a drill is on-site preparing for the initiation of additional drilling. It is anticipated that a pre-feasibility study will commence on receipt of the preliminary assessment in mid-2008, leading to the identification of the best plan for development of the Zuun Mod molybdenum project.
Located in south-western Mongolia, Erdene's wholly owned Zuun Mod property is within 180 kilometres of China's border. The project is close in proximity to where China is building its infrastructure to access Mongolia's mineral resources.
Resource Estimate
Minarco MineConsult, part of the Runge Group, has prepared the Zuun Mod Mineral Resource estimate and is in the process of completing a Technical Report, as an independent technical review of the geological model, methodologies and the resource estimate for the Zuun Mod project consistent with Canada's National Instrument 43-101, Standards of Disclosure for Mineral Projects. The table below provides a summary of the Zuun Mod molybdenum deposit by Mineral Resource category using a range of cut-off grades.
--------------------------------------------------------------------------Cut-off ContainedGrade Resources Mo MetalMo% Resource Category Mt Cu% Mo% Mlbs-------------------------------------------------------------------------- Inferred 141.2 0.056 0.039 121 ---------------------------------------------------------------- Indicated 124.4 0.059 0.041 1120.03% ---------------------------------------------------------------- Measured 343.1 0.061 0.044 333 ---------------------------------------------------------------- Total Measured & Indicated 467.5 0.061 0.044 453-------------------------------------------------------------------------- Inferred 49.7 0.063 0.047 51 ---------------------------------------------------------------- Indicated 51.2 0.068 0.051 580.04% ---------------------------------------------------------------- Measured 185.9 0.068 0.053 217 ---------------------------------------------------------------- Total Measured & Indicated 237.1 0.068 0.052 272-------------------------------------------------------------------------- Inferred 12.7 0.069 0.058 16 ---------------------------------------------------------------- Indicated 21.3 0.076 0.060 280.05% ---------------------------------------------------------------- Measured 88.8 0.075 0.062 121 ---------------------------------------------------------------- Total Measured & Indicated 110.1 0.075 0.061 148--------------------------------------------------------------------------
Resources Estimate Notes: Effective Date: May 2008. Mineral Resource estimates are not precise calculations. Estimates are rounded to appropriate significant figures. Grade modelling using Datamine Regular Block Model Mo grade modelling using Multi Indicator Kriging (MIK) Cu grade modelling using Inverse Distance interpolation (ID) Contained Metal Mo is indicative only for Mineral Resources. Contained Metal for Ore Reserves will be less due to application of modifying factors.
Recent Results - New Targets
The Zuun Mod molybdenum resource area, announced today, is contained within an area that represents approximately 10 per cent of the Zuun Mod porphyry system. The drilling and surface exploration results from 2007 provided very significant targets for additional drilling. The area surrounding the east side of the quartz ring-dyke feature (Racetrack) in the middle of the deposit was tested by ZMD-79 and returned 328 metres of 0.058% Mo including 66 metres of 0.103% Mo and ending in 12 metres of 0.243% Mo. Portions of the mineralized zone in this area have been excluded from Mineral Resource estimates until additional drilling can more accurately determine the extent of the mineralization in the area of the ring-dyke feature.
In addition, a fence of holes along the western edge of the Racetrack South deposit returned strongly mineralized molybdenum and copper zones with grades reaching 0.06% Mo and 0.10% Cu over 138 metres and plunging under andesite cover. This mineralization remains open to the west-northwest towards the interpreted centre of the mineralized Zuun Mod porphyry complex. One kilometre to the west of the drill holes exploration results have identified an intense molybdenum and copper anomaly in intrusive rocks as they become exposed from under andesite cover. The andesite is also intensely mineralized (anomalous in silver, lead and zinc) and altered over the central target.
While these two areas stand out, the entire 12-kilometre circumference of the porphyry complex, over an area typically 400 to 800 metres in width, is characterized by soil and rock samples with elevated levels of copper and molybdenum, and in more peripheral areas gold, silver, lead and zinc.
Molybdenum Market Overview
As an additive in steel, molybdenum enhances strength, corrosion resistance, hardness and weldability. These attributes are in high demand in the energy, construction, transportation and aerospace industries. Molybdenum-bearing, high-quality steel products are used in desalination plants, nuclear reactors and to explore for, produce and transport oil and gas products. Higher oil and gas prices have spurred energy exploration and development projects in environments that are becoming increasingly more demanding. In addition, molybdenum is used in catalysts to sweeten sour oils, which are becoming a larger proportion of total oil supply.
The Chinese government has recently imposed export controls and taxes on molybdenum in order to protect its domestic supply. Using conservative growth estimates of 6 per cent for China's molybdenum consumption it is estimated that demand will exceed supply by the year 2012 and that the supply deficit will approach 30 million pounds over the following five years. This bodes well for the Company's Zuun Mod molybdenum project located just 180 kilometres north of the Chinese border.
Future Plans
Minarco MineConsult has also been retained to undertake a preliminary assessment, or scoping study, into the potential economic viability of the Zuun Mod molybdenum deposit. This study will delve into such topics as metallurgy, marketing, mining and processing options, workforce requirements, environmental issues, capital and operating costs, and will culminate in a preliminary economic assessment of the Zuun Mod project. The study is expected to be completed in mid-2008.
Erdene's Annual Meeting Webcast
Erdene will be holding the Annual and Special Meeting of the Shareholders this evening, Wednesday, May 28, at 5:30 pm Atlantic in the Marriott Halifax Harbourfront Hotel in Halifax, Nova Scotia. Peter Akerley, President and CEO, will be providing an update on Erdene's Donkin Coal and Zuun Mod Molybdenum projects as well as a review of the past year's activities and plans for 2008. Management, directors and joint venture partners will be available following the meeting to discuss the Company's projects and activities. If you are unable to attend the meeting in person, you are invited to listen to a live audio webcast of the meeting on the Company's website, www.erdene.com, starting at 5:30 pm Atlantic (4:30 pm Eastern). The webcast will also be archived on Erdene's website.
Qualified Person
The Mineral Resource estimates was prepared under the supervision and based on information compiled by Mr Bill Knox, (BSc. M.AusIMM), who is an employee of Minarco-Mineconsult. Mr. Knox is also a Qualified Person within the meaning of such term under NI 43-101. Mr Knox has reviewed this release and consents to the inclusion of the matters based on his information in the form and context in which it appears. The grade model was prepared using Datamine software with a regular block model rotated along strike of the deposit. Molybdenum (Mo) grades were estimated using Multi Indicator Kriging (MIK) and copper (Cu) grades were estimated using Inverse Distance interpolation (ID). Geological data verification and QA/QC of the drill-hole results has been completed and will be included in the NI 43-101 compliant Technical Report being prepared by Mr. Knox. All drill core samples were prepared at the SGS Laboratory in Ulaanbaatar, Mongolia and sample pulps were sent to ALS Chemex, Vancouver, Canada for analysis. In addition to internal checks by SGS Laboratory and ALS Chemex Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared standards, sample splits and duplicates.
About Erdene Gold Inc.
Erdene is a diversified resource development company with multiple projects at various stages of development from exploration to production all focused on high-growth commodities. The Company has a strong portfolio of properties in Mongolia focused on base and precious metals and energy (coal). Erdene has a strategic alliance with Xstrata Coal to develop its coal properties in Mongolia. Erdene has near-term cash flow opportunities in its North American assets, which include a 25% interest in the Donkin Coal Alliance with Xstrata Coal, agreements with KaMin LLC (formerly J.M. Huber Corporation) and Ready Mix USA as operators and developers in the southeast U.S. for its kaolin clay and construction aggregate projects, respectively. Erdene has a cash position of approximately $6.45 million with 70,644,877 common shares issued and outstanding and a fully diluted share position of 80,347,352 common shares.
Forward-Looking Statements
