Erdene Resource Development Corporation

Erdene Resource Development Corporation

August 26, 2009 13:54 ET

Erdene Comments on Mongolian Parliament's Amendments to Mining Laws

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 26, 2009) - Erdene Resource Development (TSX:ERD) commented today on the Mongolian Parliament's approval of amendments to four mining laws in the country. The amendments include a provision to cancel the 68% windfall profits tax and changes to other laws aimed to benefit the country's mining industry.

"Erdene made a long term commitment to Mongolia because of its combination of world class deposits, high prospectivity for mineral discovery and strategic location relative to China," said Peter Akerley, President and CEO. "The amendments announced yesterday have reinforced our belief that the country provides one of the most attractive locations globally for investment in the mineral exploration sector. Our company will now be accelerating our efforts on all fronts in Mongolia."

Mongolian Project Summaries and Updates

Zuun Mod Molybdenum Project

Located in southwestern Mongolia, Erdene's wholly owned Zuun Mod project is a porphyry molybdenum ("Mo") (with copper and rhenium) deposit and consists of a single license totaling 49,538 hectares. The project is within 180 kilometres of China's border and 215 kilometres from the railhead transporting metallurgical and thermal coal into China from the Ovoot Tolgoi and Nariin Sukhait coal mines.

Last week, Erdene reported a National Instrument 43-101 measured and indicated resource of 134 million pounds of Mo at 0.062% Mo and an inferred resource of 97 million pounds of Mo at 0.060% Mo. The company is now advancing the project toward a mining licence application and prefeasibility through its consultants, AMC and Minarco-Mineconsult.

Erdenet Copper Project

The Erdenet Copper Project is located in north-central Mongolia adjacent to the Erdenet Mining Corporation copper/molybdenum mine, which is the second largest porphyry copper deposit in Central Asia and one of the largest in the world.. In the fourth quarter of 2009, Erdene is planning a drilling program on the Tsagaan Chuluut target located four kilometres northwest of the EMC open pit. The company's drilling results have indicated the extension of both near surface oxide and deeper sulfide porphyry copper mineralization.

Xstrata Coal Alliance

Together with Xstrata Coal Canada Limited ("Xstrata"), Erdene is involved in a comprehensive coal generative program that evaluates numerous prospective metallurgical and high quality thermal coal deposits throughout Mongolia.

All of Erdene's coal exploration in Mongolia is being fully funded by Xstrata and is being carried out in consultation with Xstrata personnel. Since 2006, the Company has visited over two hundred coal sites throughout Mongolia under the Strategic Alliance Agreement with Xstrata and has compiled an extensive database on coal deposits, occurrences, prospective stratigraphy and sedimentary basins, allowing for a prioritization of targets. During the second quarter, Erdene performed due-diligence work on behalf of the alliance and was granted new coal exploration licences and began the fieldwork portion of the 2009 exploration season.

Regional Cu-Au-Mo Porphyry Exploration

Erdene has been carrying out a regional porphyry exploration program for the past 12 months in an effort to identify targets for acquisition and exploration. The exploration efforts have been successful and will now be accelerated to the acquisition stage.

About Erdene

Erdene Resource Development Corp. is a diversified resource company with multiple projects at various stages of development from exploration to production, all focused on high-growth commodities. Erdene has a current working capital position of approximately $16.3 million, including that of its controlled subsidiary Advanced Primary Minerals Corp (APD-TSX-V), with 89,230,877 common shares issued and outstanding and a fully diluted position of 94,208,377 common shares.

Forward-Looking Statements

Certain information regarding Erdene 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 Erdene 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. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene 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 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.

Contact Information

  • Erdene Resource Development
    Peter C. Akerley
    President and CEO
    Erdene Resource Development
    Ken W. MacDonald
    Vice President Business Strategy and CFO