Erdene Resource Development Corp Makes Big Strides at Bayan Khundii Project in Pivotal Year
April 04, 2024 at 06:05 pm
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Erdene Resource Development Corp CEO Peter Akerley joined Steve Darling from Proactive to provide an update on the progress at its Bayan Khundii Gold Project during an interview with Steve Darling from Proactive.
Akerley highlighted that the past year has been transformative for Erdene, marked by significant achievements such as the establishment of a Strategic Alliance with Mongolian Mining Corporation, the leading publicly traded mining company in Mongolia. Additionally, construction has commenced at the Bayan Khundii gold project, and exploration efforts across the Khundii Minerals District have yielded continued success.
Akerley emphasized that the Bayan Khundii gold mine represents one of the highest-grade open-pit gold mines under development globally and is poised to become Mongolia's largest primary gold producer upon reaching full production. With early works completed, project finance secured, and long-lead orders arriving on-site, Erdene remains on track to produce first gold at Bayan Khundii in the second quarter of 2025.
Furthermore, Akerley shared key findings from the Bayan Khundii NI 43-101 Feasibility Study Update, which outlined a robust economic case for the project. The study reported a base case after-tax NPV5% of US$170 million and an internal rate of return (IRR) of 35%, increasing to US$223 million and 42%, respectively, at a gold price of US$2,000/oz. Total recovered gold is estimated at 476,000 ounces, representing a 25% increase compared to the 2020 feasibility study, with an average gold recovery rate of 93%. The all-in sustaining cost is projected at US$869 per ounce, with upfront capital costs of US$88 million plus a 12% contingency and pre-production costs of US$2 million. These findings underscore the project's strong economics and its potential to deliver significant value to stakeholders.
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Proactive North America
Proactive North America
+1 604-688-8158
NA-editorial@proactiveinvestors.com
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Erdene Resource Development Corporation is a Canada-based resource company. The Company is focused on the acquisition, exploration, and development of precious and base metals in Mongolia. Its principal development is the Bayan Khundii Gold Project, located in Bayankhongor province, Mongolia. Its other projects include Altan Nar Gold Project, Dark Horse, Ulaan, Zuun Mod, and Khuvyn Khar. The Bayan Khundii Gold Project is located in Bayankhongor province in Mongolia and is comprised of the 2,309 hectares (ha) Khundii mining license. The Altan Nar Gold Project is located in Bayankhongor province in Mongolia, approximately 16 kilometers (km) north of its Bayan Khundii Gold Project. Dark Horse (Khar Mori) gold prospect is situated on the Bayan Khundii license, about three km north of the Bayan Khundii project. The Ulaan exploration license covers an area of approximately 1,780 ha, immediately west of the Khundii mining license. The Zuun Mod property is located in Bayankhongor province.