Erdene posts lower net loss

Erdene Resource Development Corp. of Halifax reported a net loss Tuesday of $2,760,423 for the 12 months ended Dec. 31.

That compared with a loss of $7,345,810 for fiscal 2012.

The company, which has gold and copper exploration properties in Mongolia, reported exploration expenses of $1,701,911 in fiscal 2013, compared with $3,167,762 in 2012.

Erdene conducted a surface mapping and sampling program at its wholly owned Altan Nar gold-polymetallic project in southwestern Mongolia in 2013 that expanded its target area to include 12 distinct mineralized zones.

Exploration plans this year are being finalized with fieldwork, including drilling, expected to begin in the second quarter.

Exploration of the company’s Khuvyn Khar copper-porphyry project in 2013 resulted in the identification and prioritization of seven porphyry-copper drill targets.

Exploration plans this year include detailed surface mapping and geophysical studies and approval of a drill program with Teck Resources Ltd., Erdene’s largest shareholder.

Erdene said trenching done last year confirmed the presence of high-grade gold at its Altan Arrow gold project, 15 kilometres southeast of the Altan Nar project.

The company said recent legislative changes the Mongolian government introduced have improved the foreign investment climate in the Asian country.

Those changes include a new foreign investment law passed last year that eases restrictions on foreign investors and offers long-term tax stabilization contracts, Erdene said.

In January, Mongolia reduced its gold royalty from 10 per cent to 2.5 per cent for producers that sell their output to the Mongolian central bank.

Company officials could not be reached for further comment Tuesday.

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