Quotes from the Company:
“The first quarter of 2023 was another productive period for Erdene as we made significant progress advancing our Bayan Khundii (“BK”)
“In Q1 we also ramped up exploration in the KMD, with three rigs currently conducting mineral exploration, hydrogeological reserve exploration, and geotechnical drilling, including exploratory drilling at our Zuun Mod molybdenum-copper project,” continued
Q1-2023 Highlights and Significant Subsequent Events:
- Progressed construction readiness and engineering for the
BK Gold Project - Completed detailed design and engineering for 12 of 14 facilities
- Conducted construction, mine planning and gold processing optimization studies with MMC
- Engaged with preferred vendors and received updated quotations for major construction works and mining equipment, leveraging MMC relationships
- Completed internal Feasibility Study (“FS”) update and advanced NI 43-101 FS update
- Worked with
MMC and Glogex Consulting to update resource and mine plans, fleet optimization, and capital & operating costs for the internal study - Advanced hydrogeological, metallurgy and geotechnical work for NI 43-101 FS update
- Updated NI 43-101 scheduled to be delivered in mid-2023
- Worked with
- Advanced regulatory approvals and secured key permits for mine development
- Obtained approval for 12 project facilities and received construction permits for eight facilities
- Received regulatory approval of the Project’s 2023 operational plans
- Launched 2023 community engagement program
- Established Bayankhongor province branch office in early Q2
- Held community open house information sessions in advance of construction
Khundii Minerals District Exploration
- Commenced 4,000-metre drill program at ZM in
April 2023 - 2,500-metre first phase will test areas adjacent current resource to assess expansion potential
- Results expected to be announced in late Q2
- Carried out desktop and field orientation work in advance of a 11,000-metre gold exploration program
- Program will prioritize the greater Dark Horse area
- Drilling will test high priority targets to expand resources and conduct infill drilling to increase confidence in currently reported inferred resources
Corporate
Entered Strategic Alliance with MMC and closed the first two tranches receivingUS$10 million of funding- MMC to invest
US$40 million for a 50% equity interest in Erdene’s Mongolian subsidiary that holds the Khundii andAltan Nar mining licenses and the Ulaan exploration license - Erdene retains 50% of EM and a 5.0% NSR royalty on production from the Khundii,
Altan Nar and Ulaan licenses, as well as any properties acquired within 5 kilometres, beyond the first 400,000 ounces of gold recovered, as well as 100% interest in ZM - Closed the first stage of the Alliance in
January 2023 and the second stage in earlyMay 2023
- MMC to invest
- Progressed BK Project Finance with EDC and other international financial institutions
- EDC due diligence complete pending review of 2023 FS update, anticipated in mid-2023 and key loan terms agreed
- Discussions are proceeding in parallel with Mongolian and International financiers for the balance of capital
- Recorded a net loss of
$1,138,937 for the three months endedMarch 31, 2023 , compared to a net loss of$1,231,156 for the three months endedMarch 31, 2022 - Exploration and evaluation expenditures, including capitalized expenditures, totaled
$1,437,182 for the three months endedMarch 31, 2023 , compared to$2,904,572 for the comparative prior year period as reduced field activity and design and engineering work, as well as the payment of a deposit on the elution circuit in early 2022, and the timing of payments under the local cooperation agreement more than offset current period expenditures to update the FS - Corporate and administrative expenses totaled
$580,111 for the three months endedMarch 31, 2023 , compared to$445,446 for the three months endedMarch 31, 2022 , with the year on year increase primarily due to expenditures associated with the negotiation and announcement of theMMC Strategic Alliance as well as higher administrative salaries due to cost of living adjustments
- Exploration and evaluation expenditures, including capitalized expenditures, totaled
Update on
In
MMC’s largest beneficial shareholder is
Erdene’s exploration and pre-development capabilities, MMC’s mining and operational expertise and the ability of
Under the terms of the
The first stage of the
With the completion of the internal update study in late April, MMC advanced the second tranche of
The third stage of the partnership will see MMC invest a further
Qualified Person
About Erdene
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking 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 Erdene 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. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include the ability to obtain required third party approvals, market prices, exploitation, and exploration results, continued availability of capital and financing and general economic, market or business conditions. The 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 is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
Erdene Contact Information
Phone: | (902) 423-6419 |
Email: | info@erdene.com |
Twitter: | https://twitter.com/ErdeneRes |
Facebook: | https://www.facebook.com/ErdeneResource |
LinkedIn: | https://www.linkedin.com/company/erdene-resource-development-corp-/ |
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/d5b4bc13-d6a7-4518-8ae1-58b2f60db571
https://www.globenewswire.com/NewsRoom/AttachmentNg/4112dcb3-1c8f-4632-bbbd-3e5ff7c15847
https://www.globenewswire.com/NewsRoom/AttachmentNg/a7d5a5ca-ff29-4eef-9eea-6263775ae202
The Khundii Minerals District (KMD)
Bayan Khundii Exploration and Pre-Construction Camp (April 2023 )
ERD Discovery Team Geologists Conduct Field Evaluations at Bayan Khundii, Dark Horse and Zuun Mod
(April 2023 )
MMC & ERD CEO's Opening Representative Office in Province Centre (Bayankhongor) and Hosting an Open House Event in Sub-Province Centre (Shinejinst)
(April 2023 )
2023 GlobeNewswire, Inc., source