Wednesday, May 28, 2008

Erdene reports 435mlb resource at Mongolia molybdenum project

Nova Scotia-based Erdene Gold has completed the first NI 43-101-compliant resource estimate for its 100%-owned Zuun Mod molybdenum project, in Mongolia, the company said on Wednesday.

The deposit contains measured and indicated resources of 467-million tons, at an average grade of 0,044% molybdenum, equating to 453-million pounds of contained metal.

In addition, there are 141-million tons of inferred resources at an average grade of 0,039% molybdenum, equating to a further 12- nillion pounds of contained molybdenum metal.

The mineral resource starts within 18 m of the surface and the mineralisation remains open at depth, Erdene said.

“Today we have established Zuun Mod as one of the largest and most advanced predevelopment molybdenum projects in the North Asia region, an area with the largest growth in molybdenum consumption globally,” president and CEO Peter Akerley said in a statement.

An independent preliminary assessment is under way and a drill is on-site preparing for the initiation of additional drilling.

The company expects to begin a pre-feasibility study when it received the results of the preliminary assessment, in mid-2008.

Shares in Erdene rose 10,11% on Wednesday, to C$0,98 apiece by 13:49 in Toronto.


http://www.miningweekly.com/article.php?a_id=134405