Metals Update 17/05/2021

Kincora Copper starts drilling at Nyngan

Kincora Copper Ltd. has commenced drilling at the Nyngan copper-gold project. The Nyngan project is located in the interpreted northern undercover and underexplored section of the Junee-Narromine belt of the Macquarie Arc of the Lachlan Fold belt in New South Wales, Australia.

John Holliday, technical committee chair, and Peter Leaman, senior vice-president of exploration, commented: “Success for Kincora’s first pass two-hole program at the Nyngan project will confirm the rocks are Macquarie Arc. The program seeks to test two large porphyry targets in an area that had favourable results in previous drilling 16 years ago and has not been drill tested since. Kincora’s Nyngan and Nevertire projects cover the interpreted most prospective and shallow to moderate cover of the northern Junee-Narromine belt.

“The Boda discovery by Alkane provides proof of concept, confirming the underexplored northern extension of the parallel Molong belt. Successful drill testing of Nyngan, or by other groups currently undertaking undercover drilling in the Junee-Narromine belt, will significantly enhance the wider prospectivity of this underexplored section of the belt.

“Kincora’s drilling activities remain ongoing at the Trundle project with preparations to commence drilling at the Fairholme gold project once the program at Nyngan is concluded.”

Co-operative financing

The company was awarded $120,000 (Australian) in the third round of the New Frontiers Cooperative Drilling grants program from the government of NSW for drilling at the Nyngan project. The grant moneys are non-dilutionary and will finance direct drilling costs on a matched dollar-for-dollar basis.

The NSW government has only just announced a fourth round of the New Frontiers Cooperative Drilling grants program, which will shortly open for applications. Kincora intends to apply for both its Nyngan and Jemalong projects.

Nyngan project background

Kincora secured the Nyngan project via direct application from the NSW government. The application area was selected based on its stratigraphic-structural setting and favourable results from the last drilling program by Newcrest Mining Ltd. in 2005 that were not followed up.

Four holes were completed in the last drilling program. Three of these intersected basement at depths between 255 metres and 322 metres. Drill hole ACDNY002 recorded bornite-chalcopyrite-chalcocite-pyrite mineralization associated with strong hematite alteration in clasts of volcaniclastic conglomerate that the continuing Kincora program is looking to follow up.

Exploration approach

The first phase drilling program at Nyngan is using cost-effective mud rotary drilling to cut through the unmineralized postmineral sedimentary cover, then will transition to diamond core drilling upon refusal or once basement is reached. Petrologic, lithogeochemcial, green rock analysis and age dating will be carried out as appropriate in addition to traditional assay suites to assist with vectoring, follow-up exploration and confirmation of the targeted Macquarie Arc terrane. This is a proven exploration strategy in the covered segments of the Macquarie Arc, having been directly responsible for the Northparkes and Cowal discoveries, and currently also being applied in various other undercover sections of the Junee-Narromine belt by FMG and Inflection Resources.

The Junee-Narromine belt is considered highly prospective for large gold-copper porphyry deposits and/or epithermal gold deposits and hosts the CMOC Northparkes deposits, Evolution Mining’s Cowal deposits, Alkane’s Tomingley gold mine and Kincora’s Trundle project, where drilling commenced in April, 2020, and remains continuing.

An exploration strategy video focused on Nyngan, which outlines scale of targets and the company’s systematic exploration approach, is available at the company’s website.

The underexplored and undercover extension of the northern Junee-Narromine belt potentially covers the largest intrusive centre of the Macquarie Arc and with a jog and structural grain parallel to the Lachlan transverse zone, possibly indicating a locus for porphyry formation.

Altus Strategies to hold annual meeting June 14

Altus Strategies PLC’s annual general meeting will be held at 3 p.m. BST on Monday, June 14, 2021, at the company’s registered office at The Orchard Centre, 14 Station Rd., Didcot, Oxfordshire, OX11 7LL, United Kingdom.

The notice of meeting, annual report and accounts, and form of proxy have been posted to all Canadian registered shareholders on May 14, 2021, and will be posted to all U.K. registered shareholders on May 17, 2021. These documents are also available on the company’s website and under its profile on SEDAR.

The record date for the notice of meeting, the beneficial ownership determination date and the record date for voting (if applicable) is May 6, 2021.

The resolutions that will be proposed at the meeting are as follows.

Ordinary business: approval of annual report and accounts

That the company’s annual accounts (financial statements) for the financial year ended Dec. 31, 2020, together with the report of the directors of the company and the auditors’ report on those accounts be received and adopted.

Ordinary business: election of directors

  • David Netherway;
  • Steven Poulton;
  • Matthew Grainger;
  • Robert Milroy;
  • Michael Winn;
  • Karim Nasr.

Ordinary business: appointment of auditors

That PKF Littlejohn LLP be reappointed as the company’s auditors.

Ordinary business: remuneration

That the directors be authorized to determine the auditors’ remuneration.

Ordinary business: confirmation of share options scheme

That the company’s 2019 share option scheme be reconfirmed, ratified and approved.

Ordinary business: allotment of securities

That the directors be generally and unconditionally authorized, in accordance with Section 551 of the Companies Act 2006, to exercise all the powers of the company to allot relevant securities up to an aggregate nominal amount of 4,019,577 pounds sterling.

Ordinary business: disapplication of pre-emption rights

That, subject to the passing of resolution 11, the directors be and are hereby empowered, pursuant to Section 570 of the 2006 Act, to allot equity securities (as defined by Section 560 of the 2006 Act) for cash up to an aggregate nominal amount of 3,014,683 pounds sterling.

The company continues to monitor the COVID-19 situation, including U.K. government legislation and guidance. Given this, the board advises that to limit the risk of infection and to protect the health and safety of shareholders and employees, shareholders are strongly recommended not to attend the meeting. It is intended that the meeting will be held with only the minimum number of shareholders present as required to form a quorum under the company’s Articles of Association and who are essential for the business of the meeting to be conducted. These attendees will be officers or employees of the company. The results of the votes of the proposed resolutions will be announced in the normal way as soon as practicable after the conclusion of the meeting. Having regard to their own safety and that of others, shareholders are respectfully asked to comply with these measures and not to make plans to attend the meeting.

Abrasilver drills 104 m of 382 g/t AgEq at Diablillos

Abrasilver Resource Corp. has released continued high-grade drill results received from two additional diamond drill holes completed on its wholly owned Diablillos property in Salta province, Argentina.

                                         DRILL RESULT HIGHLIGHTS 

Drill                       From     To   Interval       Ag       Au       Cu      AgEq (1)     AuEq (1)
hole                         (m)    (m)        (m)    (g/t)    (g/t)      (%)         (g/t)        (g/t)

DDH-21-011                  99.5  102.5        3.0    221.1     0.02        -         222.6         2.97
DDH-21-011                 111.5  133.5       22.0     48.3     0.72        -         102.3         1.36
DDH-21-011 including         126  130.5        4.5     52.0     2.84        -         265.0         3.53
DDH-21-011                 145.5    168       22.5     20.5     0.75        -          76.7         1.02
DDH-21-011                   174    191       17.0     12.9     1.01        -          88.7         1.18
DDH-21-011                   200    206        6.0     11.4     0.94        -          81.9         1.09
DDH-21-011                 235.5    254       18.5     61.3     1.70        -         188.8         2.52
DDH-21-011 including       247.5    254        6.5     85.4     4.22        -         401.9         5.36
DDH-21-011 including         253    254        1.0    273.5    12.10        -       1,181.0        15.75
DDH-21-012                    32     41        9.0      7.7     1.43        -         115.0         1.53
DDH-21-012                   112    120        8.0     42.5        -       --          42.5         0.57
DDH-21-012                   134    238      104.0    216.2     2.21        -         382.0         5.09
DDH-21-012 including         172    219       47.0    280.2     4.26        -         599.7         8.00
DDH-21-012 including         204    219       15.0    302.3     7.99        -         901.6        12.02
DDH-21-012                 284.5  290.5        6.0      3.7     0.58     0.72         121.3         1.62
DDH-21-012                 416.5    418        1.5      6.2     1.60     0.48         175.6         2.34
DDH-21-012                   430  431.5        1.5    116.4     0.20     0.75         208.5         2.78

Note  
All results in this news release are rounded. Assays are uncut and undiluted. Widths 
are drilled widths, not true widths. True widths are estimated to be approximately 
80 per cent of the interval widths.
(1) Silver equivalent and gold equivalent calculations for reported drill results 
are based on $20 (U.S.)/ounce silver, $1,500 (U.S.)/oz gold and $3 (U.S.)/pound 
copper. The calculations assume 100-per-cent metallurgical recovery and are indicative 
of gross in situ metal value at the indicated metal prices. 

John Miniotis, president and chief executive officer, commented: “Our drill results continue to demonstrate both the continuity and growth potential of the high-grade silver and gold mineralization at the Tesoro zone, as well as adding to the potential resources of the Northeast gold zone beyond the open-pit margin.

“The Tesoro zone is the highest-grade area within the broader Oculto deposit. The consistent high-grade results we keep encountering continue to support our view that excellent potential exists to significantly grow the tonnage and grades of the existing mineral resources. We look forward to receiving exploration results from our remaining eight holes of the phase 1 drill program, culminating in a resource update in Q3.”

Discussion of drill hole results

Hole DDH-21-012 was drilled to test the newly named Tesoro zone (that is, the intersection of the Main and Cross breccias). The hole intersected high-grade gold and silver mineralization, with 104 metres of 2.21 grams per tonne gold and 216.2 g/t silver from 134 to 238 m downhole depth, including 47 metres of 4.26 g/t Au and 280.2 g/t Ag from 172 to 219 metres.

Hole DDH-21-012 is located on section line 8275 in the Tesoro zone, between holes DDH-20-026 (section line 8200) and DDH-20-027 (section line 8300), both of which intersected thick zones of high-grade gold and silver mineralization. This new intercept demonstrates continuity of the high-grade zone and should add substantially to the silver and gold resources in the Tesoro zone.

Importantly, the Tesoro zone is not only expanding resources, it is doing so within the existing open-pit footprint. As such, the company expects to add meaningful ounces at materially higher grades within the existing open-pit resource used in the 2018 PEA (preliminary economic assessment) study.

Hole 21-011 was drilled to test the Northeast zone of the Oculto deposit. It intersected zones of moderate-grade oxide gold and silver mineralization together with higher-grade sulphide mineralization beyond the Whittle pit margin defined in the 2018 PEA, with 18.5 metres of 1.70 g/t gold and 61.3 g/t silver from 235.5 to 254.0 m downhole depth, including 6.5 metres of 4.22 g/t gold and 85.4 g/t silver from 247.5 to 254 metres. This hole shows the continuation of gold-dominant mineralization extending northeast of the Oculto Whittle pit.

The hole ended in high-grade silver and gold mineralization, with the last one m interval grading 12.1 g/t gold and 273.5 g/t silver (from 253.0 to 254.0 metres). Additional drilling is planned to test the depth extent of this mineralized zone.

Steppe Gold mines 170,130 tonnes of ore in Q1

Steppe Gold Ltd. has released its financial results for the quarter ended March 31, 2021.

The full version of the condensed interim consolidated financial statements, and management’s discussion and analysis can be viewed on the company’s website or under the company’s profile on SEDAR. Amounts are expressed in U.S. dollars unless otherwise noted.

Steppe Gold president and chief executive officer Bataa Tumur-Ochir commented: “We are very pleased to report another strong quarter of mining and stacking at our ATO project and, most importantly, a zero-accident safety record at the project.

“We have now mined over 1.8 million tonnes of ore with 1.4 million tonnes stacked on the leach pad. With a new fixed crusher in place this summer, we are planning a record year for stacking in 2021. We paused production in the first quarter with prevailing cold weather conditions and we resumed leaching in early April with a successful gold pour in late April.

“Headwinds from COVID-19 disruptions have impacted operations at ATO. Specifically, the bottlenecks in supply of critical reagents remain a cause for concern but we are optimistic that this issue will be resolved shortly.

“With the ATO resource now at 2.45 million ounces gold equivalent, and our feasibility study on track to be finalized this summer, we are now focused on phase 2 preparations. Project lender discussions are advancing and we are optimistic that timely debt financing will allow us to continue uninterrupted with long lead item procurement and phase 2 construction, already under way.

“We have filed a prospectus to list our shares on the Mongolian Stock Exchange. We plan to list this summer with an accompanying small equity financing. We are very excited to list in our home market and allow more Mongolians to participate in the success of Steppe Gold.”

First quarter highlights (all figures in thousands of U.S. dollars unless stated)

  • Revenue for the three months ended March 31, 2021, was $1,634 on sales of 945 gold ounces and 861 silver ounces with average realized prices per ounce of $1,938 and $26 respectively.
  • Operating income from mine operations, before depreciation and depletion, was $964.
  • As at March 31, 2021, cash, restricted cash and savings accounts amounted to $28,976; bank debt was $13,451.
  • During the three months ended March 31, 2021, 170,130 tonnes of ore were mined and 189,283 tonnes of ore were stacked on the leach pad with an average gold grade of 1.91 grams per tonne and an average silver grade of 10.1 g/t.
  • The company announced a resource update on Feb. 24, 2021, for the ATO gold mine. This update shows a doubling of the resource to 2.45 million ounces of gold equivalent and now supports a planned production profile of approximately 150,000 gold equivalent ounces per year and an estimated 10-year-plus mine life
  • Work is well advanced on the definitive feasibility study (DFS) for the phase 2 expansion of the ATO gold mine. Incorporating the recent resource update and detailed new metallurgical work, the DFS is due for release in summer 2021.

Outlook

The company has continued to mine and stack throughout the winter months at planned rates. It now has approximately 1.4 million tonnes of ore stacked on the leach pad with a further 400,000 tonnes on the ROM pad.

The company paused leaching and gold production in the first quarter of 2021 as cold weather made leaching conditions less favourable. This allowed for a full quarter of plant maintenance and the company is seeing the benefits of this in current production. This cold weather disruption will be remedied for the 2021/22 winter season with the installation of a boiler plant to heat process water nearing completion. The company also wanted to conserve key chemicals and reagents for the warmer months given the continuing COVID-19-related supply constraints. The company resumed leaching and production in early April, 2021, with a successful gold pour in late April.

The company is targeting annual production in 2021 and 2022 of 50,000 oz and then a transition to the fresh rock ores in 2023. There has been a slow start to production in 2021 and the achievement of full-year production forecasts are dependent on no further delays on procurement due to COVID-19. Reagent supplies are currently unpredictable and any further delays will reduce production forecasts for 2021.

With a new crusher scheduled to be operational in summer 2021, the company believes that higher stacking rates in the second half of 2021 will mitigate some of the lost production time in the first half of 2021.

The company continues stacking ore on Cell 3 of the leach pad. Stacking of the first level of the leach pad will continue through this year. Completion of the boiler house, used to warm the barren solution, is planned for summer 2021.

The company continues discussions with Mongolian and international lenders on a multi-tranche project debt facility to finance the phase 2 expansion. The definitive feasibility study remains on track for completion in summer 2021.

Golden Predator files civil claim against Yukon gov’t

Golden Predator Mining Corp. has filed a notice of civil claim in the Supreme Court of British Columbia, on behalf of Janet Lee-Sheriff, chief executive officer, and Golden Predator (the plaintiffs) against the government of Yukon and Paul Christman (who was, at all material times, employed as the chief mine engineer for the government of Yukon) (the defendants). The claim alleges that Mr. Christman, in the course of his employment with the government of Yukon in 2020, falsely and maliciously spoke of and concerning Ms. Lee-Sheriff and Golden Predator. Mr. Christman has since left the position of chief mine engineer for the government of Yukon. The claim seeks relief against Mr. Christman and the government of Yukon, including declarations concerning the defamations alleged, production of documents relating to Mr. Christman’s dealings and influence arising from his role in the government of Yukon affecting Golden Predator, and general damages arising from the misconduct alleged. The allegations have not yet been proved in court.

Golden Predator will continue to focus on advancing its Brewery Creek project in Yukon through the permitting renewal process.

Dynacor earns $2.1-million (U.S.) in Q1

Dynacor Gold Mines Inc. has released its unaudited consolidated financial statements, and the management’s discussion and analysis for the first quarter ended March 31, 2021.

These documents have been filed electronically with SEDAR and will be available on the corporation’s website.

All figures in this press release are in millions of U.S. dollars unless stated otherwise. All variance per cent are calculated from rounded figures. Some additions might be incorrect due to rounding.

Highlights

Operational

  • Highest quarterly volume processed. In Q1 2021 the Veta Dorada plant processed a volume of 29,327 tonnes of ore (326 tonnes per day) compared with 22,901 tonnes (297 t/d) in Q1 2020, a 28.1-per-cent increase and historical Q1 high (considering 90 days in Q1 2021 and 77 potential working days due to COVID-19 restrictions plant shut-down in Q1 2020).
  • Significant increase in quarterly production. During Q1 2021, gold equivalent production amounted to 21,975 AuEq ounces compared with 13,542 AuEq ounces in Q1 2020, representing an increase of 62.3 per cent.
  • Increase in ore inventory despite the annual rainy season. With an ore purchase volume of 32,135 tonnes in Q1 2021, the corporation completed Q1 2021 with a level of inventory exceeding 11,000 tonnes. Consequently, the corporation decided to bring forward the mill expansion.

Financial

  • A 32.4-per-cent increase in Sales. With higher quantities and average gold market price, sales amounted to $40.9-million in Q1 2021 compared with $30.9-million in Q1 2020.
  • Increased gross operating margin. Gross operating margin of $5.3-million in Q1 2021, an increase of 8.2 per cent compared with $4.9-million in Q1 2020.
  • Quarter-to-quarter increase in net income. Net income and comprehensive income of $2.1-million (five cents per share) compared with $1.4-million in Q4 2020 and $2.4-million in Q1 2020.
  • Strong cash gross operating margin. Cash gross operating margin of $257 per AuEq ounce sold compared with $283 in Q1 2020.
  • Increased EBITDA (earnings before interest, taxes, depreciation and amortization) $4.6-million compared with $4.3-million in Q1 2020.
  • Stable cash-flow from operating activities before change in working capital items. Cash flow from operating activities before change in working capital items of $3.1-million (eight cents per share) similar to Q1 2020.
  • Improved cash position. Cash on hand of $17.2-million at March 31, 2021, compared with $11.9-million at year-end 2020.

Cash return to shareholders

Change in dividend policy. Starting in February, 2021, a 0.5-Canadian-cent monthly dividend per share is paid replacing the 1.5-Canadian-cent quarterly dividend. During Q1 2021, dividends totalling $800,000 ($1-million (Canadian)) were paid.

Total sales amounted to $40.9-million compared with $30.9-million in Q1 2020. The $10-million increase is explained by higher volume of gold sold ($5.4-million) at a higher average gold price ($4.6-million).

The Q1 2021 gold production also benefited from a significantly higher gold recovery (plus 3.4 per cent) compared with Q1 2020. The Q1 2021 gross operating margin reached $5.3-million which represents 13 per cent of sales. This level is higher than the forecast of the corporation. Compared with 2020, the gross operating margin was negatively impacted by the declining trend of gold market price.

General and administrative expenses amounted to $1.2-million in Q1 2021, a $100,000 increase compared with Q1 2020.

The Q1 2021 net income was impacted by the recording of a $300,000 deferred income tax expense resulting from FX variances between the U.S. dollar and the Peruvian sol applying on long-term assets local tax basis.

Outlook 2021

Ore processing

Contrary to previous years and despite the annual rainy season, the corporation was able to even increase its ore inventory during Q1 2021. With this inventory level and current strong ore purchases, the corporation has initiated in March ahead of its initial planned schedule the expansion project of its Veta Dorada processing plant which will increase the throughput level from its actual 345 t/d to 430 t/d, an increase of 25 per cent. The expansion is scheduled to be completed on time and on budget.

For 2021, the corporation issued financial and capital expenditure guidance, forecasting $150-million in sales and a net income of $6.9-million (18 cents per share). As at March 31, 2021, the corporation is slightly ahead of its 2021 financial guidance.

On May 13, the corporation released its April, 2021, monthly sales figure which amounted to $12.5-million (unaudited).

Annual meeting of shareholders

On May 14, 2021, Dynacor filed its management proxy circular and related materials for its annual meeting of shareholders, which will be held at 1, Place Ville Marie, 40th Floor, Montreal, Que., H3B 4M4, and via live webcast on June 17, 2021.

Due to restrictions relating to the global COVID-19 pandemic and to mitigate risks to the health and safety of the company’s communities, shareholders, employees and other stakeholders, Dynacor strongly encourages shareholders to vote by proxy in advance of the meeting and not to attend the meeting in person. Shareholders may attend the meeting via live webcast, where all shareholders, regardless of geographic location and equity ownership, will have an equal opportunity to participate and engage with the corporation, as well as other shareholders.

Shareholders who have questions or require voting assistance may contact Dynacor’s shareholder communication adviser and proxy solicitation agent, Laurel Hill Advisory Group, by telephone at 1-877-452-7184 (toll-free in North America) or 1-416-304-0211 (collect call outside North America) or by e-mail at assistance@laurelhill.com.

Erdene spends $2.52-million on exploration in Q1 2021

Erdene Resource Development Corp. has released operating and financial results for the three months ended March 31, 2021, and has provided an update on its Bayan Khundii gold project. This release should be read in conjunction with the Company’s Q1-2021 Financial Statements and MD&A, available on the Company’s website or SEDAR.

Highlights:

  • Advancing Bayan Khundii Gold Project towards construction
    • Completed detailed design and engineering
    • Received regulatory approval for major non-process facilities
    • Executed contract for comminution circuit
    • Developed project and operations documentation and organizational structure
  • Progressed EDC Project Finance due diligence with consultant site visits completed
  • Discovered high-grade gold, near-surface, at the new Dark Horse gold prospect
    • Gold mineralization traced over 1.4 kilometre strike
    • High-grade gold zone discovered within 10 metres of surface
      • Two holes spaced at 100 metres returned 45 metres of 5.97 g/t gold (AAD-58) and 35 metres of 2.67 g/t gold (AAD-81)
  • Scheduled major drill program to commence in late Q2, targeting Dark Horse, the southeast corner of the Ulaan license and Altan Nar

Quotes from the Company:

“During the first quarter we made significant progress on our two core objectives of advancing Bayan Khundii towards development and expanding high-grade gold resources in the Khundii Gold District,” said Peter Akerley, Erdene’s President and CEO.

“We progressed construction readiness and permitting work for our Bayan Khundii Gold Project and conducted an employment orientation program in Bayankhongor Province, our host community,” continued Mr. Akerley. “Due diligence by Export Development Canada for the Project Finance debt is well underway.”

“Concurrently, drilling and exploration work during the quarter confirmed the Dark Horse prospect as the most significant zone of gold mineralization in our Khundii Gold District since our discovery of the Bayan Khundii gold deposit,” said Mr. Akerley. “We have traced mineralization over a 1.4 kilometre trend that remains open along strike and at depth. We are finalizing plans for further drilling at Dark Horse, alongside maiden drilling of Ulaan targets and expansion of the 2020 high-grade Gap Zone at Altan Nar beginning in late Q2.”

“Although fieldwork has continued with minimal disruption, Mongolia has seen increasing spread of COVID-19, including cases in our host province of Bayankhongor,” concluded Mr. Akerley. “We are taking all precautions to maintain a safe work environment, and are closely monitoring the COVID situation in the country and its potential impact on the construction schedule for our Bayan Khundii Gold Project.”

Q1 2021 Highlights and Subsequent Events:

Bayan Khundii Gold Project — 100% Erdene

  • Progressed construction readiness activities for the Bayan Khundii Gold Project
    • Detailed design and engineering for the Carbon-in-Pulp (“CIP”) processing plant was completed in Q1 2021 — regulatory review will commence in Q2 2021
    • Contract for SAG and Ball mills awarded to CITIC in March 2021
    • Detailed drawings for major non-process facilities received regulatory approval, pending issuance of final documentation
    • Balance of facilities is expected to be ready for regulatory submission by Q3 2021
    • Construction, procurement, health and safety manuals, and job descriptions for key roles drafted in advance of the launch of construction
  • Launched an Employment Orientation program at the Bayan Khundii Project camp for local residents
    • Two cohorts of 36 received training from Erdene’s HSEC team, with a further 140 residents registered for upcoming sessions
    • Topics included Project development plans, environmental management, and opportunities for local participation in the Project
    • Future programs planned to support local residents to attain the skills to earn employment with the Project, including internship and trades certification programs
  • Obtained key permits and advanced regulatory approvals for mine development
    • Received key regulatory approvals for five key non-process facilities
    • Granted an extension for the Detailed Environmental Impact Assessment until September 30, 2021 due to COVID-19 restrictions preventing travel and public gatherings

Exploration

  • Discovered high-grade gold, near surface, at the new Dark Horse gold prospect
    • Gold mineralization traced over 1.4 kilometre strike length
    • Near surface, intensely oxidized, high-grade gold zone discovered beginning within 10 metres of surface, defined by two holes spaced at 100 metres
      • AAD-58 — 45 metres of 5.97 g/t gold, beginning 10 metres downhole, including 1 metre of 82.5 g/t gold within 8 metres of 27.1 g/t gold
      • AAD-81 — 35 metres of 2.65 g/t gold, beginning 4 metres from surface, including 12 metres of 5.1 g/t gold with separate one-metre intervals of 14 g/t and 19 g/t gold
    • Wide zones of gold mineralization beginning near surface
      • AAD-61 — 130 metres of 0.53 g/t gold, beginning 10 metres downhole, located 670 metres north of AAD-58
      • AAD-66 — 14 metres of 1.31 g/t gold, beginning 53 metres downhole, as well as 20 metres of 1.74 g/t gold, beginning 112 metres downhole, located 150 metres northeast of AAD-61
    • Open at depths of up to 220 metres
      • AAD-57 — 30 metres of 1.7 g/t gold, from 192 metres downhole
  • Engaged technical experts to assist in the interpretation of the Khundii-Ulaan geologic model and prospective mineralizing systems of the Khundii Gold District which includes Erdene’s 100% owned Altan Nar project
    • Results from geologic, structural, and geophysical modelling, spectral alteration, and clay mineralogy analysis, petrographic analysis will be incorporated into drill targeting as part of the 2021 exploration program

Corporate

  • Progressed due diligence for the Bayan Khundii Project Finance with EDC
    • Site visits completed in Q1 and draft diligence reports received
    • EDC mandate letter contemplates a senior secured debt facility of up to US$55 million, subject to the satisfactory completion of due diligence and documentation
  • Recorded a net loss of $617,084 for the three months ended March 31, 2021, compared to a net loss of $1,041,990 for the three months ended March 31, 2020
    • Exploration and evaluation expenditures, including capitalized expenditures, totaled $2,523,968 for the three months ended March 31, 2021, compared to $1,511,929 for the three months ended March 31, 2020, primarily due to increased exploration as Erdene drilled 3,100 metres in the current period, while no drilling was undertaken in the comparative prior year quarter. Additionally, expenditures on construction readiness activities in the current quarter exceeded costs associated with the Bayan Khundii Feasibility Study and Detailed Engineering and Design in the prior year quarter.
    • Corporate and administrative expenses totaled $394,604 for the three months ended March 31, 2021, compared to $374,074 for the three months ended March 31, 2020, due to higher professional fees, regulatory costs, and share-based compensation costs, partially offset by reduced directors’ fees and investor relations costs.