Erdene Resource Development Corp. (TSX: ERD | MSE: ERDN) has provided an update on the Bayan Khundii Gold Project, marking continued progress in its development with Mongolian Mining Corporation (MMC). The company’s third-quarter results for 2024 show substantial advancement on the project and improved drilling results.
Key Project Updates:
Construction Progress: As of September 30, 2024, the Bayan Khundii Gold Mine reached 45% completion, with the process plant (critical to the project) approximately 55% complete. Major mechanical equipment, including SAG and ball mills, has been installed, and construction of key infrastructure, such as the 400-person accommodation complex and 110 kV transmission line, is proceeding well.
Timeline: Erdene anticipates commissioning of the plant in Q2 2025, with first gold production expected by mid-2025 and commercial production by Q3 2025.
Drilling Success: Expansion drilling adjacent to the planned open-pit area at Bayan Khundii returned the highest-grade results to date. Significant intersections include 7.3 g/t gold over 42 metres at Striker West, indicating strong growth potential and resource expansion near the open pit.
Financial Results:
Net Loss: Erdene reported a net loss of $1.69 million for Q3 2024, compared to a loss of $1.20 million in the same period in 2023. Exploration and evaluation expenses remained stable at $215,903.
Capital Expenditures: Approximately $70 million had been spent on the project by the end of Q3 2024. The company anticipates potential cost increases due to delays from weather and logistics but expects these to be manageable within available funding.
Other Highlights:
Community Development: Erdene has supported local community initiatives, including the improvement of water wells and ongoing recruitment and training for the Bayan Khundii mine workforce, with 140 local trainees selected for equipment operator training.
Health and Safety: The project achieved over 2 million construction hours without any lost-time or environmental incidents.
Erdene remains confident in the development of Bayan Khundii, with the strong drill results reinforcing the potential for extending the mine life and expanding its resource base.
For more information,
please visit www.erdene.com.
