Erdene getting golden results in Mongolia

Things are moving fast for a Halifax junior precious metals company trying to strike it big in Mongolia.

Erdene Resource Development Corp. announced Wednesday that its drilling program at its wholly owned Altan Nar (Golden Sun) property in southwest Mongolia had found encouraging amounts of gold.

“We are very excited by these results,” said Erdene’s president and CEO, Peter Akerley. “The high-grade gold extension at depth and large zones of gold mineralization along trend suggest we have made a significant gold discovery.”

The prospect was only identified late last year. Since then, Erdene has spent nearly $1 million, most of it drilling 20 exploration holes. To date, it has received assay results from 11 of them.

Last month, Erdene raised $2.2 million through a private equity placement with Mongolian investors to explore on its Mongolian properties.

The company has been looking for copper, gold and molybdenum in southwest Mongolia, near the Chinese border, since 2009.

This has been a good week for Erdene.

On Tuesday, it reported that its partner, Aggregates USA (Sparta) LLC, had started commercial production at the Granite Hill construction aggregate property in the U.S. state of Georgia. As a result, Erdene received its first royalty — US$165,000.

Erdene shares closed at 46 cents Wednesday on the TSX, up seven cents.

(jdemont@herald.ca)

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