Erdene Resource Development

Altan Nar is a gold-polymetallic project,located 16 km north of the Company’s Bayan Khundii gold deposit.  In March 2020, Erdene secured a mining license for Altan Nar from the Mineral Resource and Petroleum Authority of Mongolia (“MRPAM”). The Altan Nar mining license covers 4,669 hectares and, in addition to the Altan Nar gold-polymetallic deposit, includes Erdene’s Oyut Khundi copper prospect and Nomin Tal copper-gold prospect.  The mining license is valid for an initial term of 30 years with the ability to extend to 70 years.

Gold exploration and development project

The Bayan Khundii gold mine(“BK” or the “Project”) is located in southwestern Mongolia, within the Khundii Minerals District, approximately 16 kilometres south of the Company’s Altan Nar deposit.  The Mine is owned by the private Mongolian company, Erdene Mongol LLC, jointly owned by Erdene and Mongolian Mining Corporation (“MMC”), the country’s largest independent miner.

Gold exploration and development project

Khuvyn Khar Copper-Silver Prospect:The 100%-owned Khuvyn Khar copper-silver prospect is located on the Zuun Mod property, approximately 2.2 kilometers northwest of the Zuun Mod molybdenum-copper porphyry deposit. Exploration work at Khuvyn Khar has included geological mapping, vein density mapping, geochemical sampling, geophysical surveys, and wide-spaced drilling. Erdene carried out drilling to test a geophysical target and intersected 34 meters of 1.3% copper and 9.2 g/t silver from 308 to 342 meters (hole ZMD-121). Additional drilling on the Khuvyn Khar prospect has defined an extensive copper mineralized zone trending over 900 meters with multiple zones in three drill holes returning assays above 0.2% copper over significant widths (12 to 42 meters).

Ulaan Gold Project– The Ulaan project is characterized by a vertically extensive high grade gold discovery located ~300 metres west of the Khundii license boundary. The Ulaan exploration license area geology is characterized by a large (over 4 kilometers in diameter) hydrothermal alteration zone which is interpreted to represent the upper levels of alteration associated with deeper intrusive/ porphyry event. The epithermal gold deposits and prospects are situated adjacent to this alteration zone and extend easterly across the Khundii mining license, hosting Ulaan, Bayan Khundii and Dark Horse Mane gold deposits as well as the Greater Dark Horse gold prospects.

Zuun Mod – Molybdenum and Copper Project:One of Asia’s largest undeveloped molybdenum projects and located within 200 kilometers of the world’s largest molybdenum consumer (China) and 35 kilometers east of the Company’s Bayan Khundii gold project. The 100% Erdene-owned Zuun Mod porphyry complex measures 16 kilometers in circumference and hosts broad zones of molybdenum and copper mineralization. The deposit is located within a Mining License, which is valid for an initial 30-year term with provision to renew the license for two additional 20-year terms.