Erdene Announces Updated Resource for the Zuun Mod Molybdenum-Copper Deposit

Executive Summary

• Erdene announced a substantially upgraded mineral resource estimate for its 100% owned Zuun Mod molybdenum‑copper porphyry project in Mongolia.
• Measured & Indicated Mo resources increased 22% to 333 Mlbs and Inferred Mo resources rose 95% to 300 Mlbs; Measured & Indicated Cu resources grew 16% to 384 Mlbs with Inferred Cu up 75% to 350 Mlbs.
• The company plans a Q4 2025 drilling program targeting vein orientation confirmation and the nearby Khuvyn Khar copper prospect, which could further boost resource volumes and grades.

Key Details

• Resource Increase: Approx. 50% total increase versus the 2011 estimate (combined Mo & Cu).
• Measured & Indicated Resources:
• Mo: 333 Mlbs @ 0.056% grade
• Cu: 384 Mlbs @ 0.064% grade
• MoEq (Mo equivalent): 439 Mlbs
• Inferred Resources:
• Mo: 300 Mlbs @ 0.051% grade
• Cu: 350 Mlbs @ 0.059% grade
• MoEq: 416 Mlbs
• Cut‑off Parameters: 0.035% Mo, US$22/lb Mo and US$4.95/lb Cu pit optimisation; open‑cut mining assumptions – 3% ore loss, 4% dilution, processing recoveries 83% (Mo) & 81% (Cu).
• Economic Assumptions Used for Resource Modelling: Mo price US$15.4/lb, mining cost US$2.18/t, processing cost US$6.85/t.
• Geological Update: Additional oriented core drilling (2023) and re‑logging of historic cores in 2025 refined vein orientation models, revealing both sub‑vertical and sub‑horizontal vein sets.
• Upcoming Drilling (Q4 2025):
• Angled holes (≈‑60°) to test near‑surface vein density and improve resource confidence.
• Test the Khuvyn Khar copper prospect (~2.2 km NW of Zuun Mod); prior limited drilling intersected 34 m @ 1.3% Cu & 9.2 g/t Ag at ~300 m depth.
• Project Context: Located 35 km east of Erdene’s Bayan Khundii Gold Mine, 180 km from China (world’s largest Mo and Cu consumer). License valid up to 70 years.
• Future Work: Process testing, infrastructure & utilities evaluation, marketing studies to advance project development.

Notable Quotes

“We are very pleased to report the updated resource, confirming Zuun Mod as one of Asia’s largest undeveloped molybdenum‑copper projects… The outlook for molybdenum is bullish and production from Zuun Mod is expected to be readily absorbed in the market.” – Peter Akerley, President & CEO

“With an improved understanding of geologic and structural controls of the deposit, several opportunities for enhancement and expansion have materialized. Drilling is planned in Q4 to test these opportunities as well as copper targets…” – Peter Akerley