A Canadian mining company says the results from the first test drills at the Altan Nar site in southwest Mongolia are “encouraging.” Erdene Resource Development Corporation announced the results on Wednesday. In a statement the company said the “encouraging polymetallic-gold assay results” are from a shallow, four-hole drill program.

“Altan Nar is proving to be an exceptional new discovery based on the size of the system and the extensive precious and base metal mineralization now confirmed through drilling,” said Erdene President and CEO Peter Akerley in a statement. “We are very encouraged by these initial, near surface, drilling results and look forward to the continued exploration of this exciting prospect.”