PDAC Presentation

Erdene Resource
Development Corp.
Developing a New
Gold District in
Southwest Mongolia
Forward Looking Statements
Certain information regarding Erdene ("the Company") contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forwardlooking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the
Company 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. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and
results may vary substantially from what the Company 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.
All Mineral Resources for Altan Nar reported in this presentation represent estimates as at 19th February, 2015. RungePincockMinarco (“RPM”) have considered the costs,
recoveries and dilutions expected by comparing with other similar deposits in the region and adjusted these by considering the location of the Project and the deposit
characteristics. Mineral Resource grades are reported in accordance with the CIM Standards.
Mineral Resource Estimates for Altan Nar are reported on a dry in-situ basis. Gold equivalent (“AuEq”) values are used in an effort to express the combined value of gold, silver,
lead and zinc as a percentage of gold, and are provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually
result. Calculations use metal prices of US $1,200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc.
The Mineral Resource estimates for Altan Nar have been compiled under the supervision of Mr. Jeremy Clark who is a full-time employee of RPM and a Member of the Australian
Institute of Geoscientists. Mr. Clark has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has
undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure.
Please refer to the NI 43-101 compliant mineral resource report for Altan Nar, dated March 24, 2015, entitled “Altan Nar Gold Project, National Instrument 43-101 Mineral Resource
Technical Report”, available on the Company’s profile at www.sedar.com, as well as the Company’s news release dated March 31, 2015, for further details on the Altan Nar mineral
resource estimate.
Reported drill hole intervals at Altan Nar represent drill intersection widths with most holes drilled at a 45 degree angle. For the Discovery Zone, the orientation of the mineralization
is near vertical and therefore true width is interpreted to be approximately 70% of the reported intervals. For Union North the mineralized zone has an interpreted dip of 45 degrees
therefore true width is close to reported drill hole intervals. All holes in Union North were drilled perpendicular to the trend of mineralization.
Reported drill hole intervals at Bayan Khundii represent drill intersection widths from holes drilled at a 45 to 60 degree angle. The Bayan Khundii mineralization is moderately
dipping (approximately 40 to 50 degrees) perpendicular to the drill hole angle.
Results for the metallurgical test programs summarized in this release were reviewed and approved by Andrew Kelly, P.Eng., of Blue Coast Research Ltd., a Qualified Person for
the purpose of National Instrument 43-101. All other technical/geologic information contained herein has been reviewed and approved by Michael MacDonald, P.Geo. (Nova
Scotia), Director of Exploration for Erdene, who is the Qualified Person as that term is defined in National Instrument 43-101. All drill result 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 and
blanks. All metallurgical testing and analysis was carried out by Blue Coast Research Ltd. at their facility in Parksville, British Columbia.
The Company's 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 subject to change after that date.
Unless otherwise indicated, all dollar values herein are in C$.
2
Highlights
Discovering and Developing a New Gold District in the Tian Shan Belt
High-Grade Gold Discovery in 2015 at Bayan Khundii Project (100% Owned)
Advancing the Altan Nar Gold-Polymetallic Project (100% Owned)
Regional Copper-Gold Exploration Through Alliance with Teck Resources
Experienced Management and Technical Team; Exploring Mongolia Since 1997
3
Giant Porphyry-Epithermal Gold
Terranes and Deposits
Prolific Tian Shan Gold Belt
Includes some of the largest economic gold accumulations in the world
Second only to Witwatersrand in South Africa for known gold resources
4
Tian Shan Gold Belt
2014-15 Gold Production from TSX listed Companies > 2 Moz
Polymetal buys
Bakyrchik Gold
Projects: US$618M
Bayan Airag: First
gold production in
Q2-2014
Centerra Gold advances
1.6 Moz Gatsuurt gold
deposit
Kinross’s Kupol, 37%
increase in production to
~750,000 oz Au
Erdene Eldorado’s three China
gold mines produced >
360,000 oz Au
Turquoise Hill (Rio
Tinto), 589,000 oz Au
produced
China Gold
production increases
22% to 180,674 oz Au
Polymetal, 130,000 oz Au
in concentrate (Mayskoye)
refined in China
5
Southern Mongolia
Mining Activity & Regional Infrastructure Build-Up
Major Infrastructure Development With Access to Equipment & Manufacturing
6
Erdene Projects - Emerging Gold District
Paleozoic Arcs - Deep Seated Regional Structures
7
Bayan Khundii Gold Discovery
Multiple Gold Targets over 4 km Trend
§  High-grade gold discovered at
surface in Q2-2015
Altan Arrow
§  Gold mineralization traced in
three separate areas over 1.7 km
trend
§  Initial gold discovery 3.5 km
north (Altan Arrow) with highgrade gold in rock chip/grab and
trenching
§  Gold in soil anomalies outside of
two target areas
Bayan Khundii
1 km
8
Bayan Khundii Gold Discovery Southwest
Intense Mineralization Over 475 m x 300 m Area
9
Bayan Khundii Gold Discovery
Cross-Section 1: High-Grade Gold Over 400 Metres
BKD-­‐09; 1m samples from 33 to 59m (g/t) 0.21 79.40 18.50 0.03 0.11 0.08 0.28 0.08 0.06 0.24 0.18 0.77 38.90 0.30 5.21 4.56 0.25 1.04 0.60 1.37 0.67 1.09 0.19 0.22 0.43 0.33 10
Bayan Khundii Gold Discovery
Continuity within Striker Zone (60 Metre Step-Out Hole)
BKD-­‐10; 1m (g/t Au) 0.11 0.15 0.18 0.11 0.17 0.10 0.09 0.08 0.17 0.11 0.14 2.98 0.69 3.01 1.25 0.05 0.12 4.22 2.65 2.27 3.37 167.00 6.27 0.30 0.10 0.07 0.31 0.12 1.14 0.15 0.28 0.67 0.05 0.14 11
Bayan Khundii Gold Discovery
Excellent Initial Metallurgy
§  Gold is free milling and amenable
to conventional processing
techniques
§  Gravity concentration and
cyanidation of the gravity tails
yielded:
-  99% recovery from highgrade composite (24.9 g/t Au)
and
-  92% from low-grade
composite (0.7 g/t Au)
12
Bayan Khundii Gold Discovery
Growth Potential
§  Geophysics indicates the mineralization
is located at the apex of broad, positive
chargeability and resistivity anomalies
§  Geophysical targets under cover to the E
and N, and two zones identified along 1.7
km trend (up to 7 g/t Au in hand sample)
Altan Arrow
Bayan Khundii - Northeast
ohm
-­‐m 700m
1.2km
§  Widespread hypogene hematite suggests
a large intense alteration system at depth
(drilling has not tested below 50 metres)
13
Bayan Khundii Gold Discovery
§  100% Ownership
§  High Grade
§  Large Scale - 1.7 km Trend
§  Excellent Metallurgy
§  Near Surface
§  Open at Depth
§  Regional Scale Targets
14
Erdene Projects - Emerging Gold District
15
Altan Nar Gold Project - Highlights
Ownership - 100% Erdene
Multiple Targets - 18 targets over 5.6 km trend
Shallow - Average drilling depth of 105 metres
Resource - Only 2 of 18 targets included
High-Grade - 2015 drilling: 19 m of 7.8 g/t AuEq
Metallurgy - 88% gold recovery (Discovery Zone North)
Expansion - Mineralization open in all directions
16
Altan Nar Gold Project - Discovery Zone
Intensely Mineralized, Near Surface, Open to North & at Depth
Continuous, high-grade mineralization from surface and open at depth
N
Cross-section
100 m
17
Altan Nar Gold Project
1Q-2015 Initial Resource Estimate
§ 
Near-surface NI 43-101 Resource Estimate on
first 2 of 18 priority targets
§ 
90% of mineral resource is <150m of surface;
all zones open along strike and at depth
§ 
Multiple undrilled and scout-drilled prospects
along the 5.6 km Altan Nar trend have the
potential for hosting additional goldpolymetallic resources
Cut-Off
Resource
Tonnes
Au
Ag
Pb
Zn
AuEq, g/t
Category
Mln
g/t
g/t
%
%
Indicated
1.85
Inferred
1.0
1.2
2.0
Extent of Initial
1Q15 Resource
Union North
(UN)
Discovery
Zone (DZ)
AuEq
g/t
oz
1.71 11.1 0.54 0.61
2.47
146,800
1.50
1.49 10.4 0.39 0.54
2.12
102,100
Indicated
1.50
2.03 11.5 0.56 0.60
2.80
134,400
Inferred
1.17
1.77 10.7 0.39 0.53
2.41
90,600
Indicated
0.82
2.99 13.5 0.63 0.63
3.83
100,900
Inferred
0.61
2.47 11.8 0.45 0.58
3.18
62,500
500m
Note: See Forward Looking Statements on slide 2 for cautionary statements as related to the above mineral resource estimates
18
Mongolia Highlights
§  Q4 2015 - $4.4 bln financing for Rio’s Oyu Tolgoi mine
§  Q4 2015 - National Bank of Canada buys 10.5% stake in one of
Mongolia’s top banks
§  Q1 2016 - Canadian Government-funded mining focussed development
projects approved
§  Q1 2016 - Centerra Gold’s Gatsuurt secures parliamentary approvals
§  Improved legislative environment over the last 2 years
§  Reduction in the gold royalty rate
§  Mining sector; 23% of GDP, 30% of govn’t revenue, and 89% of exports
Rio Tinto chief development officer on Oyu Tolgoi (Sept 2015)
“It's the biggest and best new project we've got, full-stop, across the group.”
19
Alliance with Teck Resources (2013-16)
Metal Exploration in Prospective Belt
§  Objective to discover large, near surface
metal deposits on behalf of alliance
§  Ultimately a 75:25 partnership
§  Area of Focus: Tian Shan Copper-Gold Belt
(117,000 km2 area)
§  Extensive exploration by Erdene since 2009
§  Excludes Altan Nar, Bayan Khundii and
Zuun Mod
§  Teck fully funding exploration through
equity
§  Teck required to invest a total of $3 mln or
acquire 19.9% of Erdene shares before right
to earn interest in any project
§  Field work / license applications on-going
20
Moving Forward – 2016
Key Objective – Define Bayan Khundii Resource Potential
Bayan Khundii Gold Discovery
Ø  Expanded Surface Exploration Program
Ø  Second Phase of Drilling
Ø  Mining License Application Studies
Ø  Additional Technical Studies
Altan Nar Gold-Polymetallic Project
Ø  Studies to Support Mining License Application
Regional Exploration; Teck Alliance
Ø  Copper-Gold Exploration Funded Through Alliance with Teck
21
Why Invest in ERD?
‒ 
‒ 
‒ 
Developing a new gold district through greenfield discovery
Early in exploration to development value curve
Low point in commodity cycle = low valuations
Ownership
‒ 
100% interest in Projects
Growth Potential
‒ 
‒ 
Limited drilling to date
All targets open for expansion over large areas
High-Grade & Near Surface
‒ 
‒ 
Development Stage of a Successful Mining Company
Value / ~Market Cap Early-In Opportunity
Bayan Khundii /
Altan Nar
Explora5on Discovery Feas-­‐ Const-­‐ ibility ruc5on Prod-­‐ uc5on Very high grades
Mineralized zones near vertical, exposed at surface
Excellent Metallurgy
‒ 
‒ 
99% gold recovery for high-grade Bayan Khundii
88 to 92% for Low Grade Bayan Khundii & Altan Nar (DZN)
Experience
‒ 
Very experienced management team; in Mongolia since the
mid-1990’s
Location & Infrastructure
‒ 
‒ 
Region receiving rapid rail & road upgrades
Next door to world’s second largest gold consumption
region and largest gold producer
22
Corporate Snapshot
Capital Structure
Trading Info
Share Price
52 Wk Range
Shares Outstanding
Shares Fully Diluted
Market Cap
TSX: ERD
$0.17
$0.10-0.17
105 M
124 M
$18 M
Share Distribution
Management
Peter Akerley, President & CEO, Director
Ken MacDonald, VP Bus. Development, CFO
Mike MacDonald, Director of Exploration
Mike Gillis, Director of Operations
Dawson Brisco, Manager Corporate Dvpmt
Board Of Directors
Chris Cowan (Chairman), Mining executive/
engineer with 40+ years in senior industry positions
Teck Resources
12% ERD Mgmt & Directors
11% 59% 6% 4% 2% 6% Lion Selection Group
Khan Investments
Glencore
Other Institutional
Retail
William Burton, Mining industry executive/geologist
with 30+ years in the industry
John Byrne, Finance industry professional with over 30
years experience in the Canadian banking industry
Layton Croft, Experienced Mongolian mining industry
professional (Oyu Tolgoi LLC & Peabody)
Phillip Webster, President of Imperial Windsor Group
---------David Mosher (strategic advisor), Mining industry
executive with 35 years in the industry. Former CEO of
High River Gold Mines Ltd.
23
Erdene Resource
Development Corp.
Developing a New
Gold District in
Southwest Mongolia
Q1 - 2016
TSX: ERD
Peter C. Akerley
President & CEO, Director
Tel
902-423-6419
Email
[email protected]
Website www.erdene.com
Twitter
@ErdeneRes