Erdene Resource Development Corporation
TSX : ERD

Erdene Resource Development Corporation

July 25, 2011 11:07 ET

Drill Results Confirm Continuity of Copper-Gold-Silver Sulfide Zone at Erdene's Nomin Project

HALIFAX, NOVA SCOTIA--(Marketwire - July 25, 2011) - Erdene Resource Development Corp. ("Erdene") (TSX:ERD), is pleased to announce the receipt of final analytical results from a six-hole drill program, totalling 1,023 metres, from its wholly owned Nomin copper-gold project in south western Mongolia.

Highlights

  • Drilling identified narrow, steeply dipping, parallel zones of high-grade gold, silver and copper bearing massive sulphide along a north-south strike length of approximately 150 metres
  • The mineralized zones are located under a series of shallow historic mineral workings
  • The mineralization was drill-tested to a vertical depth between 30 to 60 metres below the ancient pits
  • The most northerly hole contains 13.3 g/t gold, 3.0% copper and 26 g/t silver over 0.5 metres
  • The most southerly hole contains 1.2 g/t gold, 24.0% copper and 65 g/t silver over 0.25 metres
  • The deepest intersection, at approximately 60 metres vertical depth, was also the thickest and included 2 metres of 2.4 g/t gold, 6% copper and 16 g/t silver
  • The mineralization is open to the north, to the south and at depth

Drill Program

The Nomin drill program consisted of six holes drilled between June 13th and June 30th. Four angled holes, TND-02, 04, 05 and 06, were drilled to test the down-dip extension of the mineralization within the historic workings. The holes were all drilled at -50 degrees and were spaced approximately 50 metres apart along a strike length of 150 metres (to view a plan map, go to our website at www.erdene.com). Two vertical holes were drilled to test geophysical anomalies; one adjacent to the ancient pits (TND-01) and one testing a prospect located 1.2 kilometres to the west (TND-03).

Within the area of the ancient pits, the results indicate the presence of two sub-parallel mineralized zones within granodiorite and rhyolitic host rocks. The mineralization is associated with zones of intense magnetite and chlorite alteration and consists of disseminated and massive sulphides.

The hole in the second prospect area, 1.2 kilometres to the west of the ancient pits, intersected a narrow zone of anomalous copper mineralization, assaying 0.5% Cu over 2 metres, within a sheared volcanic host rock. The area between the two prospects is largely covered by recent sediments.

Table 1: Significant Drill Intersections

Hole No. From To Interval (m) Cu (%) Au (g/t) Ag (g/t)
TND-01 76 86 10 0.1 - -
TND-02 82 90 8 1.8 0.7 5
Including 86 88 2 6.0 2.4 16
TND-03 90 92 2 0.5 - 2
TND-04 64 66 2 0.5 0.2 2
Including 65 65.5 0.5 1.5 0.6 6
TND-05 34 37 3 3.2 0.2 8
Including 35.75 35 0.25 24.0 1.2 65
TND-06 48 54 6 0.9 2.7 6
Including 50.25 50.75 0.5 3.0 13.3 26

Future Exploration Plans

Erdene is finalizing plans for additional drilling at Nomin including targeting the Cu-Au-Ag mineralization along strike and at depth. In addition, property-wide geochemical, detailed geological mapping and prospecting surveys are underway. The results of these surveys will be used in conjunction with previously completed magnetic and IP geophysical surveys to define additional drill targets. Whole rock and petrographic studies have also been initiated to further define the style of mineralization and alteration at Nomin.

Background

The Nomin prospect was discovered as a result of a regional-scale reconnaissance exploration program carried out by Erdene in the Southwestern part of Mongolia. The prospect is located in an area that returned a strong regional poly-metallic geochemical anomaly. Prospecting and mapping in the area led to the discoveries of Cu-Ag-Pb-Zn epithermal veins and the historic pits on the Nomin property. Samples collected during the 2010 field season by Erdene geologists returned highly anomalous copper and gold values from the historic workings which are characterized by shallow hand-dug pits with associated waste rock debris.

To view the map of the Nomin property, please visit the following link: http://media3.marketwire.com/docs/Nomin_Drilling_WebMap_July25_final.jpg

Qualified Person

J.C. (Chris) Cowan, P.Eng. (Ontario) is a Qualified Person as that term is defined in National Instrument 43-101 and has reviewed and approved the technical information contained in this news release. All samples have been assayed at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the company incorporates a QA/QC sample protocol utilizing prepared standards, blanks and duplicates.

About Erdene

Erdene Resource Development Corp. is a diversified resource company with multiple projects in Mongolia, Canada, and the USA, at various stages of development, from exploration to production; all projects are focused on high-growth commodities. In Mongolia, Erdene's principals have over 14 years of experience in the country's resource sector. A dedicated technical and management team have assembled a strong portfolio of molybdenum-copper, copper-gold, and coal projects throughout the country. These projects, and our in-country experience, provide the Company with a unique opportunity to participate in this period of unprecedented economic growth in Mongolia. This growth is fuelled by the discovery and development of a number of World-class mineral projects that are transforming the country into one of Asia's natural resource capitals.

Erdene has a current working capital position of $4.7 million, including that of its controlled subsidiary Advanced Primary Minerals Corp., with 90,323,377 common shares issued and outstanding and a fully diluted position of 97,841,377 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 is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.

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