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Erdene Resource Development Corp.

Company Data | Introduction | Projects in Hand | Management
News Update
| Chinese

Address :  Metropolitan Place
Suite 1480, 99 Wyse Road
Dartmouth, Nova Scotia
Canada B3A 4S5
Tel No.: 1-902-423-6419
Web Site: www.erdene.com
E-mail: info@erdene.com / rjenkins@erdene.com
Contact Person: Robert Jenkins
Position: Chief Financial Officer


Company Data

Traded Market: TSX / MSE
Traded Symbol: ERD / ERDN
Outstanding Shares: 237.8 million
52 Week High: $ 0.71
52 Week Low: $ 0.13
Present Price: Click Here


Introduction

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Erdene is a Canada-based resource company focused on the acquisition, exploration and development of precious and base metals in underexplored and highly prospective Mongolia. The Company has interests in three mining licences and two exploration licences in southwest Mongolia, where exploration success has led to the discovery and definition of the Khundii gold district.

The Company's objective is to become a major regional gold producer, initially through development of a >60,000 ounce per year, high-grade, open-pit mine at Bayan Khundii, while continuing exploration and acquisition efforts to significantly expand operations.


Projects in Hand

Khundii Gold District

Three deposits, multiple prospects, limited exploration

  • Established three greenfield gold and copper deposits:
    • Zuun Mod Deposit (Cu, Mo) – 2011
    • Altan Nar Deposit (Au, Ag, Zn, Pb) – 2015
    • Bayan Khundii Deposit (Au) – 2018
  • Leading prospector in southwest Mongolia for over a decade
    • Staked licenses covering 542,000 ha
    • Compiled largest proprietary geologic database of the region
    • Interpreted landsat and aster data
    • Completed geochemical sampling program over 4,000,000 ha
  • Improved infrastructure in a growing mining region

Bayan Khundii Gold Project

High-grade, Near Surface Gold Discovery

Head Grade 3.7 g/t

Stripping Ratio 9.1 t:t

Target Plant Feed 1,800 tpd

Avg. Recovery over LOM 93%

Avg. Annual Saleable Gold 63,500 oz

Project Life 8 years

In July 2020, Erdene announced the results of an independent feasibility study for the Bayan Khundii gold project. The feasibility study results include an after-tax net present value at a 5% discount rate and a US$1,400 per ounce gold price of US$100-million and internal rate of return (IRR) of 42%. The feasibility study envisions an open-pit mine at Bayan Khundii, producing an average of 63,500 ounces gold per year, for seven years, at a head grade of 3.71 g/t gold, utilizing a conventional carbon in pulp processing plant. Production is expected to commence in early 2022 based on the current project schedule.

The Bayan Khundii gold resources and reserves:

  • Measured and Indicated Resources of 521,000 ounces gold at an average grade of 3.16 g/t gold
  • Proven and Probable Reserves of 410,000 ounces gold at an average grade of 3.71 g/t gold

The Khundii gold district provides a multitude of exploration and development opportunities beyond the initial proposed open-pit development at Bayan Khundii. These opportunities include recent near-surface drilling successes and expansion opportunities within the Bayan Khundii deposit area, the new Dark Horse gold discovery, and the identification of very-high-grade gold in the discovery zone at Altan Nar, reported earlier in 2020.

Q2 2020 Exploration Highlights:

  • Confirmed three new near-surface, high-grade gold zones on the Khundii Mining License:
    • Discovered a very high-grade gold zone starting at the surface in the Midfield SE zone
    • Intersected anomalous (equalling 0.2 g/t) gold in all 11 holes in a 100m x 50m area at Striker SW
    • Trenched high-grade zones at recently discovered Khar Mori (Dark Horse) prospect

On October 1, 2020, Erdene announced that the Company has completed the 10,000-metre first phase of an 18,000-metre drill program within the Khundii gold district.

  • 49 holes including four extension holes at Bayan Khundii for 8,435 metres;
  • 11 holes at Dark Horse for 1,574 metres

The early results from the first phase of the drill program, including high-grade gold intersections in multiple holes and visible gold in 10 drill holes, demonstrate the high probability of resource expansion for the Bayan Khundii gold project.

Altan Nar Gold Project

The Altan Nar gold polymetallic deposit is located 16 km north of the Company's Bayan Khundii gold deposit. In early 2020, the Company reported a high-grade discovery in the Discovery Zone (DZ), one of 18 high-priority targets along the 5.6 km mineralized trend on its 100%-owned Altan Nar project. Results included 23 m of 17 g/t gold, 44.7 g/t silver, 0.75% lead and 1.47% zinc (TND-135). The Q1 2020 results demonstrate continuity in size and grade within the high-grade DZ core, providing confidence for future expansion.

The current Altan Nar gold resource includes 318,000 ounces of 2 g/t gold indicated and 186,000 ounces of inferred at 1.7 g/t gold in addition to significant silver and base metal content.

Erdene Next Steps

  • Bayan Khundii drilling to expand resources and reserves – Q4 2020
  • Dark Horse (Khar Mori) first exploration drilling results – Q4 2020
  • Altan Nar expansion drilling Q4 2020-H1 2021
  • Resource Update H1 2021
  • Pre-Construction scheduled to begin late 2020
  • Project Debt Financing secured by Q1 2021
  • Full Construction scheduled in 2021
  • First Gold within 18 months of commencing construction


Management

Peter C. Akerley, President & Chief Executive Officer, Director

Mr. Akerley is a mining executive and geologist with 30 years of experience in mineral exploration, corporate financing, project development and management of public resource companies.

Robert Jenkins, Chief Financial Officer

Mr. Jenkins held a series of progressive finance and operational roles with Canada's leading asset management firm. Mr. Jenkins is a Chartered Professional Accountant.

Michael X. Gillis, Vice President Exploration and Operations

Mr. Gillis has over 25 years of experience in the mineral exploration industry in increasingly senior project and corporate management positions.

Gendenjamtsyn Bat-Erdene, Senior Geologist

Mr. Bat-Erdene is a well respected geologist in Mongolia, with over 25 years experience in the Country's resource exploration industry.

Jon Lyons, Vice President Regulatory Affairs and Strategy

Most recently, Mr. Lyons was with the Global Green Growth Institute as Country Representative to Mongolia.

Darryn Broderick, Director of Finance

Mr. Broderick was a Channel Partner for a large US-based software vendor. In 2010, Mr. Broderick helped Erdene implement a new ERP system and has been supporting the Company ever since.

Bayarmaa Bagabandi, Chief Administrative Officer

Ms. Bagabandi has been involved in the administrative side of Mongolia's resource industry for over 15 years.

Bilguun Ankhbayar, Vice President Business Development

Mr. Ankhbayar is a Mongolian mining finance professional, based in Ulaanbaatar, with North American and Mongolian capital markets experience.

D. Suzan Frazer, Corporate Secretary

Ms. Frazer is a partner of the Halifax office of the law firm, McInnes Cooper. She has been practicing corporate law for over 25 years and is experienced in representing public and private companies in the junior resource sector.

Layton Croft, Chairman

Mr. Croft has 25 years of leadership and management experience in Mongolia, and 16 years of global mining experience.

Dr. Anna Biolik, Director

David Mosher, Director

John Byrne, Director

Kenneth MacDonald, Director

Hedley Widdup, Director

Cameron McRae, Director


News Update

On October 13, 2020, Erdene Resource Development Corp. announced that the European Bank for Reconstruction and Development (EBRD) has exercised its conversion option in respect of its $5-million (U.S.) convertible loan with Erdene Resource Development Corp. Following conversion of the convertible loan, the EBRD owns and controls 30,043,290 common shares representing approximately 11.2 per cent of the issued and outstanding common shares of the Company.

Erdene also announced that construction readiness activities for Bayan Khundii gold project commenced in Q3 2020.


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