HALIFAX, Nova Scotia, May 13, 2024 (GLOBE NEWSWIRE) — Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) (“Erdene” or the “Company”) is delighted to share its operating and financial results for the three months ending on March 31, 2024. Additionally, the Company provides an update on its progress at the Bayan Khundii Gold Project (“BK” or “Project”), which is being developed with Mongolian Mining Corporation (“MMC”). This press release should be read alongside the Company’s Q1-2024 Condensed Consolidated Interim Financial Statements and MD&A, accessible on the Company’s website and SEDAR+.
Peter Akerley, Erdene’s President and CEO, mentioned, “During the first quarter, Erdene and MMC closed their Strategic Alliance and officially initiated the construction of the Bayan Khundii Gold Project, which is one of the highest grade, open pit gold mines under development globally. Bayan Khundii will evolve into Mongolia’s largest primary gold producer upon reaching full production, creating new opportunities for the Mongolian mining sector, amplifying the industry’s contribution to the national economy, and generating long-term value for Erdene shareholders.”
He went on to say, “Construction at Bayan Khundii is on track and within budget, with around 15% of works finished by the end of the first quarter. Over 400 personnel are currently on-site, working safely towards first gold in Q2 2025.”
Mr. Akerley concluded, “In the first quarter, we also launched our 2024 exploration program, aiming to expand mineralization in the Khundii Minerals District (“KMD”), situated in an under-explored, world-class gold and copper belt. Ground-truthing of high-potential drill targets at Dark Horse and Ulaan started in Q2, in addition to surface exploration of Zuun Mod gold and copper targets, along with other regional exploration work.”
Construction Progress at Bayan Khundii
Construction at Bayan Khundii has reached significant milestones, including:
- Announced formal construction decision for Bayan Khundii on January 15, 2024
- Mobilized for full construction during Q1 2024 with over 400 personnel now on-site
- Project is proceeding to budget and schedule – construction expected to be substantially complete by the end of 2024, commissioning in Q1 2025 and first gold production in Q2 2025
- Reached 15% construction progress at Bayan Khundii by the end of Q1 2024
- Achieved 1,000,000 hours of construction effort without a lost-time incident
- Finished detailed design work and completed procurement of critical long-lead equipment
- Commenced Process Plant structural steel erection
- Advanced community development and local employment stakeholder programs
- Local Cooperation Agreement in place to support 2024 local development programs
- Recruitment and training of Bayan Khundii mine workforce well advanced, with 100 local residents completing mining equipment operator training
Exploration in the Khundii Minerals District
Significant progress has been made in the exploration program for the Khundii Minerals District:
- Completed 2024 exploration program planning for the Khundii Minerals District
- Near-term focus on mine geology for Bayan Khundii and near-pit expansion opportunities
- Planning completed for follow-up drilling at Zuun Mod to confirm resources in advance of planned Preliminary Economic Assessment
- Field program commenced in early Q2 on high priority targets within the KMD, including mapping and surface sampling to ground-truth drill targets
Corporate Updates
Key corporate updates include:
- Closed Strategic Alliance on January 23, 2024 to advance construction of BK Project
- MMC invested US$40 million for a 50% equity interest in EM, the company holding the BK Project
- Erdene retains a 50% equity interest in EM as well as a 5% NSR royalty on production from the Khundii District after the first 400,000 ounces of gold production and 100% interest in Zuun Mod
- Secured BK Finance from strategic partner MMC
- Up to US$80 million shareholder loan to EM, the entity co-owned by Erdene and MMC
- Five-year bullet maturity, bearing interest at 13.8%, payable in arrears
- Secured by Erdene’s interests in EM and preferential rights over Erdene’s properties
- Recorded a net loss of $2,678,373 for the three months ended March 31, 2024, compared to a net income of $5,405,927 for the three months ended March 31, 2023
- Exploration and evaluation expenses totaled $783,156 for the three months ended March 31, 2024, compared to $66,827 for the same quarter in 2023
- Corporate and administrative expenses totaled $2,777,588 for the three months ended March 31, 2024, compared to $580,111 for three months ended March 31, 2023
- Non-cash gain on dilution of investment in associate of $1,070,737 with the issuance of equity in EM to MMC on January 23, 2024
- Loss from investment in associate of $257,016 for the three months ended March 31, 2024, compared to a loss from investment in associate of $564,206 for the three months ended March 31, 2023
Qualified Person
Peter Dalton, P.Geo. (Nova Scotia), Senior Geologist for Erdene, serves as the Qualified Person as defined in National Instrument 43-101 and has reviewed and approved the technical information in this news release.
About Erdene
Erdene Resource Development Corp. is a Canadian resource company dedicated to acquiring, exploring, and developing precious and base metals in underexplored and highly prospective Mongolia. The Company holds interests in three mining licenses and an exploration license in Southwest Mongolia. Exploration success has led to the discovery and definition of the Khundii Gold District. Erdene Resource Development Corp. is listed on the Toronto and the Mongolian stock exchanges. Further information is available at www.erdene.com.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Erdene believes that the expectations reflected in such forward-looking statements are reasonable, but cannot guarantee their accuracy. Actual performance may be influenced by various factors, most of which are beyond its control. Erdene notifies that future events and results may differ significantly from its current projections. 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
Peter C. Akerley, President and CEO, or
Robert Jenkins, CFO
