Copper & Gold
TSX: ERD
MONGOLIA PROJECTS
Novokuznetsk
ika
R U S S I A
Gorno-Altaisk
Ba
M
l
Barnaul
Ust' Ordynskiy
La
Semipalatinsk
ke
Chita
Irkutsk
Ulaan Ude
Ust'-Kamenogorsk
Baley
Kyzyl
Aginskoye
Hovsgol
Nuur
Uvs
Nuur
Chatanga
Sukhbaatar
Ulaangom
Olgiy
Darkhan
Moron
Khovd
Bayan
Kharaat
Erdenet
Erdenet
Ikh Tal
Bulgan
Tsetserleg
Baruun Urt
M
on
Virgin
li a
Tsagaan Ovoo
go
Arvaiheer
Underkhaan
ns
Bayankhongor
Altai
Choibalsan
Tsenkher Gol
Baganuur
Dzuunmod
M O N G O L I A
Wild Mountain
Wunugetushan
ULAANBAATAR
Boroo
Uliastai
Tr a
n
Mandalgovi
lw
i
Biger
Ra
ongolia is highly prospective for the discovery of
world-class mineral deposits.
Major mineral deposits can be
found in and around Mongolia.
These deposits occur in tectonic terranes that typically host
numerous large deposits, however, Mongolia remains largely
under explored. Erdene’s properties are well situated within
these known terranes and
include multiple areas where
significant mineralization has
been
intersected
during
Erdene’s drilling programs.
Mogoit
ay
Sainshand
Tsagaan
Savarga
Zuun Mod
Dalandzadgad
Oyu
Tolgoi
Bayan Obo
ERDENE PROPERTIES
Erdene Properties
Gold
Gold
Copper
Copper
Molybdenum
Porphyry showing
Main railway
Island Arc terraine
Major road
Accentionary wedge
100
200
300
400
Railw
ay un
Jining
der C
onstru
Datong
Jiayuguan
Baotou
(Steel Making
Industrial Centre)
Tr
(Steel Making
Industrial Centre)
sC
h in
500
aR
Yinchuan
ai l
wa
y
BEIJING
Port of Tianjin
(international exports)
C H I N A
an
Copper
Smelter
Huhot
ction
YELLOW
0
Mine/major deposit
Erjin Qi
Shijiazhuang
Taiyuan
Jinan
VE
R
Kilometres
R
Xining
I
Lanzhou
Zhengzhou
Luoyang
PROJECT HIGHLIGHTS
China’s infrastructure
development, including
electricity generation and
transmission capacity,
electrified railways and
telephone networks, and
its growing output of
manufactured goods is
creating massive new
demand for copper.
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■
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Erdene has six significant porphyry
related copper-gold-molybdenum
mineralization projects across
Mongolia’s major metallogenic terranes, areas highly prospective for
the discovery of new mineral deposits
The Erdenet property is located in the
shadow of the Erdenet mine, the
largest producing copper mine in the
China-Mongolia region and the second largest porphyry copper deposit
in Central Asia
The Mogoit and Tsagaan Ovoo projects were recently acquired from
Xstrata/ Falconbridge who identified
six high priority drill targets
Xi'an
■
Exploration is continuing at Biger to
following up on copper, gold and platinum-group-element (PGE) anomalies
from surface rocks and drill core
■
Bayan Kharaat is a promising new project within the Erdenet porphyry belt
where drill targets have been identified
■
Virgin is a large, highly prospective
property in the same porphyry belt as
the RTZ/Ivanhoe Oyu Tolgoi project;
drilling on the Temuujin prospect identified mineralization & alteration typical
of the distal part of a porphyry system
MONGOLIA COPPER & GOLD PROJECTS
Erdenet copper-molybdenum mine
Central Mogoit Compilation Map
ERDENET IKH-TAL
MOGOIT
Copper-Molybdenum Porphyry Project
Copper-Gold Porphyry Properties
■
Large 85.4 km2 property
immediately surrounding the Erdenet Mining
Corporation (EMC) open
pit copper-molybdenum
mining operation
■
The EMC deposit is the
largest producing copper mine in the ChinaMongolia region and the second largest
porphyry copper deposit in Central Asia
■
Erdene drilling results include a five metre section of 0.71% copper within a 35 metre interval
with copper oxide mineralization that averaged
0.21% copper from 24 to 59 metres from the
northwest flank of the EMC deposit
East of the mine a copper oxide blanket
34m thick and averaging 0.24% copper
has been traced over 200m and remains
open in all direction
■
AND
TSAGAAN OVOO
■
Properties optioned from Xstrata/Falconbridge
in early 2007 for back-in right considerations
■
The two optioned properties lie 30 kilometres
apart in south central Mongolia within a group
of contiguous exploration licenses covering
approximately 990 km2
Rock samples from these
areas have returned significant
values for copper (up to 14%)
and gold (up to 11 g/t)
■
Falconbridge’s work identified porphyry-style
copper-gold system target areas characterized
by coincident geophysical (IP and magnetic)
and geochemical (rock and soil) anomalies in
areas of historic shallow pits and trenching
■
Six high priority drill targets on the two
properties identified by Flaconbridge
At Tsagaan Chuluut, an area 4 km northwest
of the EMC open pit, exploration has outlined
an area of silicification and alunite alteration
coincident with a large magnetic low, high
chargeability and low resistivity
Copper oxide, Tsagaan Ovoo
www.erdene.com
Reviewing Biger data
Virgin – Temuujn drill core
BIGER
BAYAN KHARAAT
Copper-Gold-PGE Project
Copper Porphyry Project
■
■
The Biger project is an alkalic porphyry system
with potential to host significant copper-goldplatinum mineralization located in southwestern
Mongolia
Rock samples returned copper values up to
2.8%, accompanied by elevated palladium
(1.37 g/t), gold (0.5 g/t), and platinum (0.29 g/t)
A drill hole testing an outlier protruding
through a large area of pediment cover
intersected a 24 metre section that
assayed 0.5% copper with elevated gold
(0.1g/t) and palladium (0.1g/t) values
■
■
Geophysical modeling (3D) of the ground
magnetic data identified several large features
beneath the extensive pediment cover that
remain highly prospective for porphyry style
copper-gold-PGE mineralization
Subsequent geophysical (gradient and
dipole-dipole IP) and geochemcial (mobile
metal ion) surveys have further defined targets for 2007 drilling
■
Located within the Erdenet Copper Porphyry Belt
■
Extensive geophysical surveys (magnetic and
IP) with follow-up geochemical and geological
mapping surveys identified new copper-molybdenum porphyry targets in 2006
■
Rock grab samples from these areas have
returned values up to 0.22% copper
VIRGIN/TEMUUJIN
Copper-Gold Porphyry Project
■
The Virgin property and Temuujin prospect are
situated within the South Gobi porphyry belt
which hosts significant copper-gold porphyry
mineral deposits, including the world-class
Hugo deposit at Oyu Tolgoi
■
Drilling has confirmed porphyry-related
mineralization and alteration within the
Temuujin area typical of
the distal part of a zoned
porphyry system
■
Large portion of the
62,000 hectare Virgin
property remaining
untested
TSX: ERD
THE CHINA FACTOR
Demand for Copper
Copper is widely used in construction,
electronic products, transportation equipment, industrial machinery and a wide
variety of consumer products. China’s
growing infrastructure, expanding exports
and burgeoning middle class all contributed to a huge demand for copper that
has helped push the metal to record high
prices. Copper has very strong fundamentals, driven in particular by the increasing
modernization and construction in China.
Other Asian countries, such as Taiwan,
Korea and Japan, also have high demands
for copper and other metals as they
increase manufacturing to supply China.
SX-EW production at Erdenet
■
China continues to lead the world in economic
growth fueled by an ever expanding middle
class demanding consumer goods as well as
rapid urbanization resulting in an unprecedented
new construction boom
■
In the past few years, world demand for metals
and other raw material, lead by China, has resulted in a supply shortage and record high prices
for many commodities, including copper
■
A number of Erdene’s copper-gold projects are
located in southern Mongolia, an area with major
new resource development projects including the
Nariin Sukhait coal project and the Oyu Tolgoi
gold-copper project, and China is building up its
infrastructure to access Mongolia’s emerging
mineral resources
■
Erdene’s projects located in northern Mongolia are
in areas where infrastructure and rail is already
established to ship concentrate from the countries
largest copper mine at Erdenet, to markets in China
COPPER IN CHINA
Erdene Market Facts (December 31, 2006)
Common shares issued & outstanding 53.1 million
Shares Fully Diluted
62.8 million
Working Capital
$7.6 million
TSX Symbol
ERD
Erdene Gold Inc.
Metropolitan Place, Suite 1480, 99 Wyse Rd.
Dartmouth, Nova Scotia, Canada B3A 4S5
tel: 902.423.6419 fax: 902.423.6432
toll free: 800.261.1422
www.erdene.com