Erdene Resource
Development Corp.
The Altan Nar GoldSilver-Lead-Zinc
Project
MARCH
2015
TSX: ERD
Forward Looking Statements
Certain information regarding Erdene ("the Company") contained herein may constitute forwardlooking statements within the meaning of applicable securities laws. Forward-looking 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.
Gold equivalents have been used in this presentation to express the combined value of gold, silver,
lead and zinc as a percentage of gold, and is 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 $1200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc.
The Company's forward-looking statements are expressly qualified in their entirety by this
cautionary statement. The information contained herein is stated as of the current date and subject
to change after that date.
Unless otherwise indicated, all dollar values herein are in C$.
2
Corporate Snapshot
Capital Structure
(24-02-2015)
Management
Trading Info
TSX: ERD
Share Price
$0.13
52 Wk Range
$0.09-0.26
Shares O/S
82.6 M
Shares F/D
93.3 M
Mike MacDonald, Director Exploration
Market Cap
$11 M
Mike Gillis, Director Operations
Shareholder Registry
ERD Mgmt & Directors
12%
12%
Ken MacDonald, VP Bus.Dvpmt, CFO
Board Of Directors
William Burton, Former President &
Teck Resources
6% Lion Selection Group
52%
Chris Cowan, VP Asia, Director
CEO of MagIndustries Corp.
11%
Retail
Peter C. Akerley, President & CEO, Director
4% Khan Investments
3%
Glencore
John Byrne, President of Petroleum
Corp. of Canada Exploration Ltd.
Phillip Webster, President of Imperial
Windsor Group Inc.
Other Institutional
3
Company Highlights
 Advancing 100% Owned Altan Nar Gold-Polymetallic Project
−
Near term potential for a low cost, near-surface, high-grade open pit operation
−
Maiden NI 43-101 resource estimate anticipated by Q2-2015
−
Carbonate gold, base metal system analogous to some of Asia’s largest gold deposits
−
Extensive 5.6 km mineralized corridor with significant potential at depth and along strike
−
Next door to China, the world’s second largest gold consumer
 Recent Agreement with Australian Listed Tian Poh Resources
‒
Tian Poh can earn 51% in Erdene’s Zuun Mod Moly-Copper Project by paying US$4.8M
to Erdene over 5 years (option to earn 100% by paying $14M to $18M)
‒
Tian Poh backed by the Poh family, owners of Singapore’s largest logistics company
 Alliance with Teck Resources
‒
Regional gold-copper exploration program in the Tian Shan Gold Belt
4
Major Gold Terranes and Deposits
The 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
5
North Asia Gold Production
2014 – 2015 Highlights
Polymetal buys
Bakyrchik Gold
Projects: US$618M
Eldorado’s three China
gold mines produced >
360,000 oz Au
Bayan Airag: First
gold production in
Q2-2014
Turquoise Hill (Rio
Tinto), 589,000 oz Au
produced
Centerra Gold advances
1.6 M oz Gatsuurt gold
deposit
Kinross’s Kupol, 37%
increase in production to
~750,000 oz Au
China Gold
production increases
22% to 180,674 oz Au
Polymetal, 130,000 oz Au in
concentrate (Mayskoye)
refined in China
6
Emerging Mining Region
Improving Accessibility and Infrastructure
Next Door to the World’s Second Largest Gold Consumer
7
Altan Nar Gold Project
2011 Erdene Grassroots Discovery (100% Owned)
4 Million Hectare Exploration Program
Deep Seated Regional Structures
Altan Nar
200 km
20 km
Initial Discovery - Ancient Pit
Expanded Geochemical Soil Survey
Lead
Gold
2km
2 km
8
Altan Nar Gold Project
Early Indications of a Significant Gold System
First Hole at Altan Nar Returned 21m @ 3.0 g/t Au Eq. Within 50m of Surface,
and 50m Vertically Below the Discovery Hole, 16m @ 6.5 g/t Au was Intersected
9
Altan Nar Gold Project
Recent Drilling Success
 Discovery Zone (500m strike length and open)

Q4-2014 Drilling: 16 m @ 8.7 g/t gold equivalent1 (7.2 g/t gold)

Zone characterized by high-grade intervals from surface, within broad lower
grade zones including up to 94 m @ 1.0 g/t gold equivalent
 Union North (300m strike length and open)

Q4-2014 Drilling: 10 m @ 4.1 g/t gold equivalent1 (2.9 g/t gold)

Geophysics and geochemical results suggest continuity beyond strike length
 Regional (multiple targets)

10 m @ 2.3 g/t gold equivalent (1.7 g/t gold) and 11 m @1.2 g/t gold
equivalent (0.8 g/t gold) at Union South target

16 high-priority targets with limited to no drilling
1
Gold equivalent calculations used metal prices of US $1200/oz gold, $18/oz silver, and $0.90/lb for lead and zinc. No allowances have been
made for potential recovery losses.
10
Altan Nar Gold Project
Multiple, Large, Gold & Base Metal Mineralized Targets
Highlights
 18 targets along 5.6 km trend
Union
North
 72 drill holes completed for
11,000 m
Discovery
Zone
500m
 88% drilling success rate
intersecting target mineralized
zones
 53% of drilling confined to
Discovery Zone
 Average vertical drilling depth of
105 m
11
Altan Nar Gold Project
Discovery Zone – Drill & Trench Highlights
Intensely Mineralized, Near Surface, Open to the North and at Depth
11 m @ 2.6 g/t Au Eq
16 m @ 8.7 g/t Au Eq
94 m @ 1.0 g/t Au Eq
19 m @ 7.8 g/t Au Eq
8 m @ 6.0 g/t Au Eq
B
7 m @ 7.1 g/t Au Eq
15 m @ 3.7 g/t Au Eq (T)
See cross-sections
on following slides
A
16 m @ 7.1 g/t Au Eq
21 m @ 3.0 g/t Au Eq
12
Altan Nar Gold Project
Discovery Zone North – Cross-Section (A)
Continuous, High-Grade Mineralization From Surface, Open at Depth
11 m @ 4.6 g/t Au Eq (3.0 g/t Au)
16 m @ 8.7 g/t Au Eq (7.2 g/t Au)
19 m @ 7.8 g/t Au Eq (5.8 g/t Au)
13
Altan Nar Gold Project
Discovery Zone North – Cross-Section (B)
Broad Mineralized Zones Open at Depth & Along Strike at Northern Edge of DZ
94 m @ 1.0 g/t Au Eq
38 m @ 1.3 g/t Au Eq
37 m @ 1.7 g/t Au Eq
5 m @ 3.4 g/t Au Eq
17 m @ 1.1 g/t Au Eq
28 m @ 1.6 g/t Au Eq
14
Altan Nar Gold Project
Union North
Union North Highlights
Union
North
 1.2 km NW of Discovery Zone
 High grade & near surface over
300 m strike length (open)
 1,115 m of drilling & 610 m of
trenching
500m
 Drill Highlight: 24 m @ 2.1 g/t Au,
5.8 g/t Ag, & 1.4% combined Pb-Zn
 Trench Highlight: 19m @ 8.9 g/t
Au, 66 g/t Ag, & 10.2% combined
Pb-Zn
15
Altan Nar Gold Project
Union North – Drill & Trench Highlights
Multiple Mineralized Structures Open in all Directions
6 m @ 6.7 g/t Au Eq (T)
12 m @ 5.4 g/t Au Eq
19 m @ 15.1 g/t Au Eq (T)
12 m @ 3.0 g/t Au Eq
9 m @ 7.6 g/t Au Eq (T)
7 m @ 3.4 g/t Au Eq (T)
30 m @ 1.4 g/t Au Eq
See cross-section
on following slide
9 m @ 5.4 g/t Au Eq
11 m @ 6.7 g/t Au Eq (T)
10 m @ 4.1 g/t Au Eq
6 m @ 3.8 g/t Au Eq (T)
16
Altan Nar Gold Project
Union North – Cross-Section
Limited Drilling and Trenching Has Established Continuity of Mineralized Zones
19 m @ 15.1 g/t Au Eq
12 m @ 5.4 g/t Au Eq
6.4 m @ 3.1 g/t Au Eq
8 m @ 1.7 g/t Au Eq
17
Altan Nar Gold Project
Favourable Carbonate Base Metal Gold Model
Characteristics of “CBM” Gold Deposits
 Large vertical extent; can have a vertical
dimension of 1,000+m; Kelian 500m deep pit;
Altan Nar only shallow drilling completed to date
 Known deposits include: Porgera (>25 Moz),
Kelian (5.7 Moz), Amatok (10 Moz), Misima (4
Moz), Montana Tunnels (36 Moz silver), Fruta del
Norte (6.7 Moz), and Rosia Montanna (17 Moz)
 Multiple mineralized structures with large (>1km)
strike lengths; 18 targets identified at Altan Nar,
over 5.5 km long mineralized corridor
 Bonanza gold grades and by-product base metal
production often associated with CBM’s
18
Altan Nar Gold Project
Other Priority Targets
Highlights
3 Maggie: 500 m2 target with coincident high
chargeability under cover; 17 m of 3.4 g/t Au, 4.9
g/t Ag & 1.4% Pb-Zn
4 Northbow: Intense alteration & breccia zone over
400 m; most intense gold-moly anomaly at Altan
Nar; 9 m of 1.3 g/t Au & 1.3% combined Pb-Zn
5 Junction: Very intense, widespread gold-leadzinc soil anomalism; trench results include 4 m of
4.9% combined Pb-Zn within 26 m of 0.8% Zn
500m
6
Southbow: Most intense chargeability anomaly
at Altan Nar; 600 m long buried target
7 Union South: 1 km geophysical & geochemical
anomaly; 2 zones – 10 m of 2.3 & 11 m of 1.5 Au
equivalent
19
Altan Nar Value Creation Plan
Timeline
1,000m drilling &
2,000m trenching
program over highpriority targets
Goal: Improve drill
targeting and
increase confidence
for resource
estimation
Q2-2014 - Complete
Resource
definition drilling at
Discovery Zone
and Union North
Goal: Extend, and
establish continuity
of, high-grade gold
zones along strike
Q4-2014 - Complete
Establish initial
resource at
Discovery Zone
and Union North
Goal: Define nearsurface, highgrade, resources
that are amenable
to open pit mining
Q1-2015
Complete highlevel scoping &
metallurgical
studies
Goal: Determine
options for
development and
processing
Q2-2015
20
Major Acquisitions in Gold Mining Sector
$3,500,000,000
$3,400,000,000
$2,400,000,000
$1,840,000,000
$1,600,000,000
$1,200,000,000
$608,000,000
$250,000,000
2007-Kinross
Buys
Bema
2007
(Russia)
Kinross Buys
Bema
(Russia)
2008-Newgold 2009-Kinross
Acquires
Buys2009
Aurelian
2008
Metallica and
(Ecquador)
Newgold
Kinross Buys
Peak (America's)
Acquires
Metallica &
Peak
(America's)
Aurelian
(Ecuador)
2009-Eldorado
Buys
Sino
2009
(China)
Eldorado
Buys Sino
(China)
2010-Goldcorp 2011-Eldorado 2012-Iamgold
2014-Agnico
Buys2010
Andean Buys 2011
European Buys Trelawney
Bids
for
Cayden
2012
2014
(Argentina)
Goldfields
(Canada)
(Mexico)
Goldcorp (Mediteranean)
Eldorado
Iamgold Buys Agnico Bids
Buys Andean
(Argentina)
Buys
European
Goldfields
(Europe)
Trelawney
(Canada)
for Cayden
(Mexico)
21
Altan Nar Gold Project
The Next Giant Gold Deposit of the Tian Shan?
Development Stage of a Successful Mining Company
‒ A new gold district discovery
‒ Early in exploration cycle
‒ Period of low valuations in sector
Ownership
‒ 100% interest in Project
Significant Upside Potential
‒ Limited drilling to date with all targets open
for expansion
Value / ~Market Cap
Early-In Opportunity
Altan Nar
Exploration
Discovery
Feas.
Construc. Product.
High-Grade & Near Surface
‒ Evidence of bonanza grades that have
potential to improve pit economics
Very Large System
‒ 5.6 km x 1.5 km target area
‒ Potential for > 1.5 Moz
Location & Infrastructure
‒ Region receiving rapid rail & road upgrades
‒ Next door to world’s second largest gold
consumption region
22
Zuun Mod Moly-Copper Project
Recent Agreement with Tian Poh Resources
 Option agreement entered into on 12-Feb, 2015
 Tian Poh can earn 51% in Erdene’s Zuun Mod Molybdenum-Copper
Project by paying US$4.8M in cash and equity over 5 years, with the
option to earn 100% by paying $14M to $18M
 Tian Poh backed by the Poh family, owners of Singapore’s largest
logistics company
 Agreement provides an immediate capital injection into Erdene with no
dilution and has the potential for significant cash and equity payments
as the Project advances
 Allows Erdene management to focus on advancing the Altan Nar
deposit
23
Zuun Mod Moly-Copper Project
One of Asia’s Largest Molybdenum Deposits
OWNERSHIP
• 100% owned by Erdene
(subject to Tian Poh
Agreement)
• Mining license granted
in 2011
• Southwest Mongolia
LOCATION
• 200 km from China, the
world’s largest
consumer of
Molybdenum
NI 43-101 RESOURCE ESTIMATE
Cut
Off
Tonnes
%
Mt
%
Mo
%
Cu
M lb
Mo
M lb
Cu
M&I 0.04
218
0.057
0.069
273
331
Inf 0.04
168
0.052
0.065
192
240
MI&I 0.04
386
0.055
0.067
465
571
MI&I 0.05
208
0.062
0.070
290
323
Grade
Contained
Metal
WORLD CLASS TONNAGE & GRADE
RESOURCES
• Total MI&I resources of
465 M lbs of Mo and
571 M lbs of Cu
• Deep drilling: 118m @
0.106% Mo
24
Erdene Investment Proposition
 Advancing 100% Owned Altan Nar Gold Project Toward
Production
 Low Cost Entry Into Gold Sector
 High Discovery Potential Along Mineralized Trend at Altan Nar
 Delivering Value Through Exploration to Discovery in an
Emerging Metal Belt Through Partnership With Teck Resources
 Experienced Team With Principles Active in Mongolia Since Mid
1990’s
 Improving Investment Environment in Mongolia
25
Erdene Resource
Development Corp.
MARCH
2015
TSX: ERD
Advancing Altan Nar
Toward Production
Peter C. Akerley
President & CEO, Director
Tel
902-423-6419
Email
[email protected]
Website
www.erdene.com
Twitter
@ErdeneRes
Notes