Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) has announced the results of an updated independent Feasibility Study for the high-grade, open-pit Bayan Khundii (BK) Gold Project in Mongolia.
Highlights included a base case after-tax Net Present Value (NPV) of US$170 million, using a 5% discount rate, and 35.3% Internal Rate of Return (IRR), increasing to US$196 million and 38.95% IRR, respectively, at the current gold price of US$1,900 per ounce.
"The Bayan Khundii Gold Project will be one of the highest grade open-pit gold mines in the world, and Mongolia’s largest primary gold producer, when it comes on stream in 2025," Erdene Resource Development CEO Peter Akerley said in a statement.
"This updated Feasibility Study confirms the Project’s strong economics, supported by a 25% increase in recovered gold due to the incorporation of additional resources from Bayan Khundii and the Dark Horse Mane deposit," he added.
Erdene also noted the Feasibility Study estimates the life of mine Earnings Before Interest, Taxes and Depreciation of US$451 million, increasing to US$495 million at a US$1,900 per ounce gold price.
It added that all-in-sustaining costs (AISC) are forecast to be US$869 per ounce, based on estimated annual average production of 74,200 gold ounces, along with upfront capital costs of US$88 million.
As well, the updated Feasibility Study indicated a 25% increase in total recovered gold to 476,000 ounces, from the Study completed in 2020, according to the company.
Erdene Resource Development is a Canada-based resource company focused on the acquisition, exploration, and development of precious and base metals in underexplored and highly prospective Mongolia.
Contact Sean at sean@proactiveinvestors.com