tsx:erd copper & gold - erdene cu au.pdf · sainshand underkhaan mandalgovi ... copper smelter...
TRANSCRIPT
■ Erdene has six significant porphyryrelated copper-gold-molybdenummineralization projects acrossMongolia’s major metallogenic ter-ranes, areas highly prospective forthe discovery of new mineral deposits
■ The Erdenet property is located in theshadow of the Erdenet mine, thelargest producing copper mine in theChina-Mongolia region and the sec-ond largest porphyry copper depositin Central Asia
■ The Mogoit and Tsagaan Ovoo proj-ects were recently acquired fromXstrata/ Falconbridge who identifiedsix high priority drill targets
Railway under Construction
UvsNuur
HovsgolNuur
Lake
Bai
kal
RIVER
YE
LL
OW
Trans China Railway
TransM
ongolianRailway
Erjin Qi
Port of Tianjin(international exports)
Dalandzadgad
Khovd
Olgiy
Ulaangom
Moron
Altai
Uliastai
Arvaiheer
Tsetserleg
Bayankhongor
Bulgan
Dzuunmod
Sainshand
Underkhaan
Mandalgovi
Baruun Urt
ChoibalsanULAANBAATAR
Chita
Darkhan
Irkutsk
Chatanga
Ulaan Ude
Aginskoye
Sukhbaatar
Ust' Ordynskiy
Barnaul Novokuznetsk
Semipalatinsk
Gorno-Altaisk
Ust'-Kamenogorsk Kyzyl
LuoyangZhengzhou
Jinan
Taiyuan
BEIJING
Shijiazhuang
Datong
Xi'an
Huhot
Xining
Lanzhou
Yinchuan
Bayan Obo
Jining
Baganuur
Jiayuguan(Steel MakingIndustrial Centre)
Baotou(Steel Making
Industrial Centre)
Boroo
Wunugetushan
TsagaanSavarga
OyuTolgoi
Erdenet
Baley
CopperSmelter
Wild Mountain
VirginTsagaan Ovoo
Tsenkher Gol
Biger
Zuun Mod
ErdenetIkh Tal
BayanKharaat
Mogoit
M O N G O L I A
C H I N A
R U S S I A
Erdene Properties
Gold
Copper
Molybdenum
Main railway
Major road
Mine/major deposit
Gold
Copper
Porphyry showing
Island Arc terraine
Accentionary wedge
ERDENE PROPERTIES
0 100 200 300 400 500
Kilometres
■ Exploration is continuing at Biger tofollowing up on copper, gold and plat-inum-group-element (PGE) anomaliesfrom surface rocks and drill core
■ Bayan Kharaat is a promising new proj-ect within the Erdenet porphyry beltwhere drill targets have been identified
■ Virgin is a large, highly prospectiveproperty in the same porphyry belt asthe RTZ/Ivanhoe Oyu Tolgoi project;drilling on the Temuujin prospect identi-fied mineralization & alteration typicalof the distal part of a porphyry system
PROJECT HIGHLIGHTS
TSX: ERDTSX: ERD
Copper & GoldMONGOLIA PROJECTS
China’s infrastructuredevelopment, includingelectricity generation andtransmission capacity,electrified railways andtelephone networks, andits growing output ofmanufactured goods iscreating massive newdemand for copper.
Mongolia is highly prospec-tive for the discovery of
world-class mineral deposits.Major mineral deposits can befound in and around Mongolia.These deposits occur in tecton-ic terranes that typically hostnumerous large deposits, how-ever, Mongolia remains largelyunder explored. Erdene’s prop-erties are well situated withinthese known terranes andinclude multiple areas wheresignificant mineralization hasbeen intersected duringErdene’s drilling programs.
■ Large 85.4 km2 propertyimmediately surround-ing the Erdenet MiningCorporation (EMC) openpit copper-molybdenummining operation
■ The EMC deposit is thelargest producing copper mine in the China-Mongolia region and the second largestporphyry copper deposit in Central Asia
■ Erdene drilling results include a five metre sec-tion of 0.71% copper within a 35 metre intervalwith copper oxide mineralization that averaged0.21% copper from 24 to 59 metres from thenorthwest flank of the EMC deposit
■ At Tsagaan Chuluut, an area 4 km northwestof the EMC open pit, exploration has outlinedan area of silicification and alunite alterationcoincident with a large magnetic low, highchargeability and low resistivity
ERDENET IKH-TALCopper-Molybdenum Porphyry Project
■ Properties optioned from Xstrata/Falconbridgein early 2007 for back-in right considerations
■ The two optioned properties lie 30 kilometresapart in south central Mongolia within a groupof contiguous exploration licenses coveringapproximately 990 km2
■ Falconbridge’s work identified porphyry-stylecopper-gold system target areas characterizedby coincident geophysical (IP and magnetic)and geochemical (rock and soil) anomalies inareas of historic shallow pits and trenching
■ Six high priority drill targets on the twoproperties identified by Flaconbridge
MOGOIT AND TSAGAAN OVOOCopper-Gold Porphyry Properties
Erdenet copper-molybdenum mine
East of the mine a copper oxide blanket34m thick and averaging 0.24% copperhas been traced over 200m and remainsopen in all direction
Rock samples from theseareas have returned significantvalues for copper (up to 14%)and gold (up to 11 g/t)
Central Mogoit Compilation Map
Copper oxide, Tsagaan Ovoo
MONGOLIA COPPER & GOLD PROJECTS
■ The Biger project is an alkalic porphyry systemwith potential to host significant copper-gold-platinum mineralization located in southwesternMongolia
■ Rock samples returned copper values up to2.8%, accompanied by elevated palladium(1.37 g/t), gold (0.5 g/t), and platinum (0.29 g/t)
■ Geophysical modeling (3D) of the groundmagnetic data identified several large featuresbeneath the extensive pediment cover thatremain highly prospective for porphyry stylecopper-gold-PGE mineralization
■ Subsequent geophysical (gradient anddipole-dipole IP) and geochemcial (mobilemetal ion) surveys have further defined tar-gets for 2007 drilling
■ Located within the Erdenet Copper Porphyry Belt
■ Extensive geophysical surveys (magnetic andIP) with follow-up geochemical and geologicalmapping surveys identified new copper-molyb-denum porphyry targets in 2006
■ Rock grab samples from these areas havereturned values up to 0.22% copper
VIRGIN/TEMUUJINCopper-Gold Porphyry Project
■ The Virgin property and Temuujin prospect aresituated within the South Gobi porphyry beltwhich hosts significant copper-gold porphyrymineral deposits, including the world-classHugo deposit at Oyu Tolgoi
■ Drilling has confirmed porphyry-relatedmineralization and alteration within theTemuujin area typical ofthe distal part of a zonedporphyry system
■ Large portion of the62,000 hectare Virginproperty remaininguntested
BAYAN KHARAATCopper Porphyry Project
BIGERCopper-Gold-PGE Project
A drill hole testing an outlier protrudingthrough a large area of pediment coverintersected a 24 metre section thatassayed 0.5% copper with elevated gold(0.1g/t) and palladium (0.1g/t) values
Reviewing Biger data Virgin – Temuujn drill core
www.erdene.com
Demand for CopperCopper is widely used in construction,electronic products, transportation equip-ment, industrial machinery and a widevariety of consumer products. China’sgrowing infrastructure, expanding exportsand burgeoning middle class all con-tributed to a huge demand for copper thathas helped push the metal to record highprices. Copper has very strong fundamen-tals, driven in particular by the increasingmodernization and construction in China.Other Asian countries, such as Taiwan,Korea and Japan, also have high demandsfor copper and other metals as theyincrease manufacturing to supply China.
■ China continues to lead the world in economicgrowth fueled by an ever expanding middleclass demanding consumer goods as well asrapid urbanization resulting in an unprecedentednew construction boom
■ In the past few years, world demand for metalsand other raw material, lead by China, has result-ed in a supply shortage and record high pricesfor many commodities, including copper
■ A number of Erdene’s copper-gold projects arelocated in southern Mongolia, an area with majornew resource development projects including theNariin Sukhait coal project and the Oyu Tolgoigold-copper project, and China is building up itsinfrastructure to access Mongolia’s emergingmineral resources
■ Erdene’s projects located in northern Mongolia arein areas where infrastructure and rail is alreadyestablished to ship concentrate from the countrieslargest copper mine at Erdenet, to markets in China
Erdene Gold Inc.Metropolitan Place, Suite 1480, 99 Wyse Rd.Dartmouth, Nova Scotia, Canada B3A 4S5tel: 902.423.6419 fax: 902.423.6432toll free: 800.261.1422www.erdene.com
THE CHINA FACTOR
Erdene Market Facts (December 31, 2006) Common shares issued & outstanding 53.1 millionShares Fully Diluted 62.8 millionWorking Capital $7.6 millionTSX Symbol ERD
TSX: ERDTSX: ERD
SX-EW production at Erdenet
COPPER IN CHINA