Erdene Resource Development Corp, a Canadian mineral exploration and development company, has made significant progress with its Bayan Khundii Gold Project in Mongolia, positioning it as a future leader in the country's gold production. The company's strategic alliance with Mongolian Mining Corporation, Mongolia's leading publicly traded mining company, is a key development that promises to accelerate the project's advancement.
Construction at the Bayan Khundii site is underway, and exploration in the Khundii Minerals District continues to show promising results. Peter Akerley, Erdene's CEO, highlights the project's potential to become Mongolia's largest primary gold producer, attributing this to its high-grade open-pit gold mine status, one of the best globally under development.
The updated NI 43-101 Feasibility Study for Bayan Khundii presents a compelling economic argument for the project. It reveals a base case after-tax NPV5% of US$170 million and an IRR of 35%, with figures rising to US$223 million and 42% respectively at a gold price of US$2,000/oz. The study also estimates total recovered gold at 476,000 ounces, a 25% increase from the 2020 feasibility study, with an average gold recovery rate of 93%.
With an all-in sustaining cost of US$869 per ounce and upfront capital costs of US$88 million plus a 12% contingency, the project's economics are strong. Early works completion, secured project finance, and the arrival of long-lead orders on-site keep Erdene on track for first gold production in the second quarter of 2025. This milestone is not only significant for Erdene but also for the Mongolian mining industry, marking a new era of development and opportunity.
