Erdene Resource Development Corp.
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.
Khundii Gold District
Three deposits, multiple prospects, limited exploration
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:
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:
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.
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
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
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.