Erdene Reports Positive Results for Mongolian Gold Project

- October 21st, 2019

Erdene Resource has released the results of an independent technical report for its wholly owned, open-pit, Khundii gold project in southwest Mongolia. 

Erdene Resource Development  (TSX:ERD,MSE:ERDN,OTC Pink:ERDCF) has released the results of an independent technical report for its wholly owned, open-pit, Khundii gold project in southwest Mongolia.

Included in the technical report is a pre-feasibility study  the Bayan Khundii gold deposit and an updated preliminary economic assessment for its Altan Nar deposit located 16 km from Bayan Khundii.

As quoted from the press release:

The technical report also includes an updated mineral resource as well as a statement of mineral reserves for Bayan Khundii.  The technical report was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) by Tetra Tech Inc. (“Tetra Tech”). The Technical Report, pursuant to NI 43-101 guidelines, will be filed on SEDAR within 45 days.

NI 43-101 Technical Report Highlights(US$1,300/oz Gold Price) • Post-tax Net Present Value of US$97 million (NPV5 percent) and a 42 percent Internal Rate of Return (IRR), for the BK PFS

• Post-tax NPV5 percent and IRR of US$24 million and 92%, respectively, for the updated AN PEA, reflecting the second phase of the development, and utilizing the BK infrastructure

• BK PFS Life of Mine Earnings Before Interest, Taxes and Depreciation of US$211 million

• BK Measured and Indicated Resources of 520,700 ounces gold at an average grade of 3.16 g/t gold, a 20 percent increase from the September 2018 resource estimate

• BK Proven and Probable Reserves of 422,000 ounces gold at an average grade of 3.7 g/t gold

• Life of mine head grade of 3.73 g/t gold for the BK PFS and 3.46 g/t gold for the updated AN PEA

• Project life of 11 years, comprising one year pre-production period, six-year operating life for BK, three-year operating life for AN, and one year mine closure

“With exceptionally high gold grades, a growing resource and low capital and operating costs, the Khundii Gold Project will generate significant returns for all stakeholders,” said Peter Akerley, Erdene’s President and CEO. “Bayan Khundii PFS results provide a compelling base development case, and the updated Altan Nar PEA demonstrates the significant upside in our Khundii gold district.”

Click here to read the full announcement 

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