Erdene Resource Development Corp. The Altan Nar Gold Project Exploring for the Next Giant Ore Deposit of the Tian Shan September 2014

Transcription

1 Erdene Resource Development Corp. The Altan Nar Gold Project Exploring for the Next Giant Ore Deposit of the Tian Shan September 2014

2 Forward Looking Statements 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. 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$. 2

3 Corporate Snapshot CAPITAL STRUCTURE ( ) Trading Info TSX: ERD Share Price $ Wk Range $ Shares O/S 74.9 M Shares F/D 88.5 M MANAGEMENT Peter C. Akerley, President & CEO, Director Chris Cowan, VP Asia, Director Ken MacDonald, VP Bus.Dvpmt, CFO Mike MacDonald, Director Exploration Market Cap $12 M Mike Gillis, Director Operations SHAREHOLDER REGISTRY BOARD OF DIRECTORS Retail 51% Teck 12% 12% ERD Mgmt & Directors William Burton, Former President & CEO of MagIndustries Corp. John Byrne, President of Petroleum Corp. of Canada Exploration Ltd. 25% Institutional Phillip Webster, President of Imperial Windsor Group Inc. 3

4 Company Highlights Advancing 100% Owned Altan Nar Gold Project Early in discovery phase with tremendous upside Alliance with Teck Resources in 2013 Establishing drill targets on copper porphyry target Large Molybdenum-Copper Deposit Adjacent to world s largest molybdenum consumer Altan Nar Gold Discovery Khuvyn Khar Copper Porphyry Target Zuun Mod Molybdenum Deposit Experienced Management Team Principles Working in Mongolia Since Late 1990s Improving Mongolia Investment Environment Favourable new Investment Law & reduction in gold royalty Exploring Mongolia Since

5 The Tian Shan Gold Belt Some of the Largest Economic Accumulations of Gold in the World Tian Shan Belt, Well Endowed with Giant Orogenic, Mesothermal, Porphyry and Epithermal Gold Deposits (Muruntau, Kumtor, Axi, Xitan, Oyu Tolgoi) 5

6 Grassroots Gold Discovery (100% Owned) 4 Million Hectare Exploration Program Deep Seated Regional Structures Altan Nar 200 km 20 km Expanded Geochemical Soil Survey First Drill Hole: g/t Gold Lead Gold 2 km 6

7 Discovery Zone Drill & Trench Highlights Intensely Mineralized, Near Surface, Open to the North and at Depth 4.7g/t Au, 8.5g/t Ag, & 1.3% Pb-Zn 3.4g/t Au, 47g/t Ag, & 0.4% Pb-Zn (within 1.2g/t Au) 17.7g/t Au, 69g/t Ag, & 4.6% Pb-Zn (within 5.8g/t Au) 1.2g/t Au & 7.6 g/t Ag, Incl 3.0 g/t Au & 19.6 g/t Ag 1.1g/t Au & 5.4 g/t Ag, Incl 2.4 g/t Au & 8.0 g/t Ag 4.5g/t Au, 25.4g/t Ag, & 2.3% Pb-Zn (within 1.8g/t Au) 1.0g/t Au, 10.1g/t Ag, & 1.2% Pb-Zn (within 0.5g/t Au) (end of hole, 200m) 1.1g/t Au & 11.3 g/t Ag, Incl 3.0 g/t Au & 33.7 g/t Ag 7.5g/t Au, 40g/t Ag, & 1.2% Pb-Zn (within 3.2g/t Au) 3.9g/t Au, 17.4g/t Ag & 0.6% Pb-Zn (within 2.1g/t Au) 9.1g/t Au, 22.7g/t Ag, & 0.9% Pb-Zn (within 4.3g/t Au) Drill result Trench result 7

8 Discovery Zone Drill & Trench Highlights Intensely Mineralized, Near Surface, Open to the North and at Depth Multiple Parallel zones to main Discovery Zone including 0.7g/t gold with 2.9g/t Gold Eq. 3.6 g/t gold, 23 g/t silver & 1.7% combined lead-zinc, Including 17.7 g/t gold, 69 g/t silver, & 4.6% combined lead-zinc Plunging under cover to north with 1.1g/t Gold Eq. Multiple Intersections of >2g/t Gold Parallel Zone, 6m of 2.1g/t Gold Eq. Deepest Intersection at Altan Nar 5.7g/t Gold Eq. Note: Gold equivalents based on current metal values (Au, Ag, Pb, Zn) 8

9 Multiple, Large, Gold and Base Metal Mineralized Targets Priority Targets 1 Discovery Zone: most advanced target; up to 35 m wide zones of high-grade of >3 g/t gold, continuing to surface, 450m strike & open; 2 Union North: 1.2km NW of DZ; high-grade, near surface mineralization over 150m strike length including 8.9g/t gold in trenches 3 Maggie: 500m 2 target with high-grade trenching results; coincident chargeability high under cover 4 Northbow: intense phyllic alteration & breccia zone over 400m strike; most intense gold-moly anomaly at Altan Nar 5 Junction: very intense, widespread gold-leadzinc soil anomalism; rock samples returning up to 11.2 g/t gold; coincident geophysical targets 6 Southbow: most intense chargeability anomaly at Altan Nar; 600m long buried target 9

10 Multiple, Large, Gold and Base Metal Mineralized Targets Priority Targets 1 Discovery Zone: most advanced target; 450m strike & open; high-grade of >3 g/t gold, up to 35 m wide zones including 3.6g/t gold 2 Union North: 1.2km NW of DZ; high-grade, near surface mineralization over 150m strike length including 8.9g/t gold in trenches 3 Maggie: 500m 2 target with high-grade trenching results; coincident chargeability high under cover 4 Northbow: intense phyllic alteration & breccia zone over 400m strike; most intense gold-moly anomaly at Altan Nar 5 Junction: very intense, widespread gold-leadzinc soil anomalism; rock samples returning up to 11.2 g/t gold; coincident geophysical targets 6 Southbow: most intense chargeability anomaly at Altan Nar; 600m long buried target 10

11 Union North Drill & Trench Highlights Multiple Parallel Mineralized Zones, Open in all Directions 8.9g/t Au, 66 g/t Ag, 7.7% Pb, & 2.5% Zn 5.0g/t Au, 7.6 g/t Ag, 1.2% Pb, & 0.2% Zn 2.1g/t Au, 5.8 g/t Ag, 0.58% Pb, & 0.77% Zn (incl. 3.5 g/t Au) 4.0g/t Au, 35 g/t Ag, 6.9% Pb, & 0.5% Zn 2.5g/t Au, 3.0 g/t Ag, 0.9% Pb, & 0.8% Zn 1.0g/t Au, 1.4 g/t Ag, 0.6% Pb, & 0.3% Zn 1.0 Au, 0.4 g/t Ag, & 0.3% Zn Trench result Drill result 1.8g/t Au, 1.4 g/t Ag, 0.8% Pb, & 0.6% Zn (incl. 6.0 g/t Au) 2.1g/t Au, 5.8 g/t Ag, 0.59% Pb, & 0.84% Zn (incl. 5.0 g/t Au) 5.3g/t Au, 2.6 g/t Ag, 1.4% Pb, & 0.4% Zn 4.4g/t Au, 11.6 g/t Ag, 1.0% Pb, & 0.8% Zn 11

12 Recent Drill Results - Union North Cross Section - June 2014 Drill Program 8.9 g/t gold, 66 g/t silver, 10.2% combined lead-zinc 12m of 4.0 g/t gold, 10 g/t silver and 2.5% combined lead-zinc 24m of 2.9g/t Gold Equiv. 12

13 Recent Drill Results - Union North IP Chargeability Cross Section - June 2014 Drill Program 8.9 g/t gold, 66 g/t silver, 10.2% combined lead-zinc 12m of 4.0 g/t gold, 10 g/t silver and 2.5% combined lead-zinc 13

14 Multiple, Large, Gold and Base Metal Mineralized Targets Priority Targets 3 Maggie: 500m 2 target with high-grade trenching & coincident chargeability high under cover; Single trench - 17 m of 3.4 g/t gold, 4.9 g/t silver & 1.4% combined lead-zinc; Single hole - 2 zones, 11m of 1.6g/t Au eq. & 6.5m of 1.8g/t gold eq. 4 Northbow: intense phyllic alteration & breccia zone over 400m strike; most intense gold-moly anomaly at Altan Nar; single trench - 9 m of 1.3 g/t gold and 1.3% combined lead and zinc 5 Junction: very intense, widespread gold-leadzinc soil anomalism; rock samples returning up to 11.2 g/t gold; coincident geophysical targets 6 Southbow: most intense chargeability anomaly at Altan Nar; 600m long buried target 7 Union South: 1km geophysical & geochemical anomaly ; 600m long buried target; Drill results include 2 zones; 10m of 2.3 & 11m of 1.5 Au eq. 14

15 High-Grade, Carbonate Base Metal CBM Gold Vein-Breccia Deposit Intermediate epithermal gold deposits are often base metal rich and locally associated with porphyry deposits Known CBM deposits include: Porgera (>25 Moz), Kelian (5.7 Moz), Amatok (10 Moz), Misima (4 Moz), Montana Tunnels (36 Moz silver), Fruta del Norte (6.7 Moz), and Rosia Montanna (17 Moz) Productive stockwork, breccia, veins can be >1km in strike length in intermediate systems CBM deposits can have a vertical dimension of 1,000+m; Kelian 500m deep pit; Altan Nar only shallow drilling completed to date 18 targets identified at Altan Nar, over 5.5 km long mineralized corridor 15

16 Moving Forward Near Term Objectives Complete 3,000m trenching program over high priority targets to improve drill targeting and increase confidence for resource estimation Resource definition drilling over Discovery Zone and Union North Reconnaissance drilling to further evaluate and prioritize remaining targets Establish initial near surface, open pitable resources at Discovery Zone and Union North in late 2014/early

17 The Next Giant Gold Deposit of the Tian Shan? Early-In Opportunity A new gold district discovery Early in exploration cycle Period of low valuations in sector High-Grade & Near Surface Evidence of bonanza grades that have potential to improve pit economics Ownership 100% interest in licence Significant Upside Potential Limited drilling to date with all targets open for expansion Very Large System 5.5 km x 1.5 km target area Potential for > 1.5 Moz Location & Infrastructure Region receiving rapid rail & road upgrades Next door to world s largest gold production & consumption region 17

18 Emerging Mining Region Improving Accessibility and Infrastructure 18

19 Mongolia Metals Projects Includes One of the World's Largest Gold Mines Oyu Tolgoi Copper Gold Project Top 6 gold deposit in world, 700,000 ounces of gold in 2014 $7 billion invested to date, 4 years from Feasibility Study to 1 st ore 15 banks signed: IMF, EBRD, IFC and US Export-Import Bank Phase II funding expected in 2014, additional $5 billion Kharmagtai Copper Gold Project ASX listed Xanadu Mines share price up 200% since July on Cu-Au drill results Boroo Gold Mine, Gatsuurt Gold Deposit, ATO Gold Prospect TSX listed Centerra Gold s top three Mongolia gold projects Bayan Airag Gold Mine Kerry Holdings owned private company, initial gold production Q

20 Share Price ($CAD) Market Cap ($USD) Erdene Value / ~Market Cap Share Price ($CAD) Erdene Valuation Factors Development Stage of a Successful Mining Company 9 Month Insider Buying; Management & Directors Hold >12% $0.25 $0.20 $0.15 Altan Nar Gold Project Exploration Discovery Feas Const Product $0.10 $0.05 $0.00 Insider Buying Dec Jan Feb Mar Apr May 1 Year Share Performance; Mongolia Metals Exploration Peers $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 Erdene Aug Oct Dec Feb Apr Jun Market Cap Peer Comp; Precious Metals Summit Comp. HK $958 $600 $500 $400 $300 $200 $100 $0 Early Stage Resource Defined Production 20

21 Erdene Resource Development Peter C. Akerley President & CEO, Director Website TSX: ERD