Erdene Resource Development Corp Poised for Pivotal Year at Bayan Khundii Gold Project

Erdene Resource Development Corp, a Canadian mineral exploration and development company, has achieved remarkable milestones in the past year, setting the stage for a pivotal year ahead at its Bayan Khundii Gold Project in Mongolia.

In a transformative move, Erdene established a Strategic Alliance with Mongolian Mining Corporation, the leading publicly traded mining company in Mongolia. This alliance is expected to provide significant benefits for the development of the Bayan Khundii Gold Project.

Construction has commenced at the Bayan Khundii site, and exploration efforts across the broader Khundii Minerals District have yielded continued success, further bolstering the project’s prospects. According to Peter Akerley, Erdene’s CEO, the Bayan Khundii gold mine is poised to become Mongolia’s largest primary gold producer upon reaching full production, thanks to its status as one of the highest-grade open-pit gold mines under development globally.

The recently updated NI 43-101 Feasibility Study for Bayan Khundii outlines a robust economic case for the project. The study reports 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%.

Furthermore, the study projects an all-in sustaining cost of 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.

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, marking a pivotal milestone for the company and the Mongolian mining industry.

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