Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) in January announced that it has commenced construction of its open pit mine at the Bayan Khundii gold project in Mongolia, on track to commence production at the site as soon as the second quarter of 2025.
“Our schedule right now has us completing the majority of the build by the end of 2024, going through commissioning in late 2024 to the first quarter of 2025 to hit that first gold in the second quarter of 2025,” Erdene CEO Peter Akerley told Proactive.
He said that the rate of production at the mine in the first year will be about 60,000 ounces per year.
This will ramp up to steady-state production of 87,000 ounces of gold per year for years two through five of the mine’s seven-year life.
“This is a seven-year mine life but investors that have been with us for a long time recognize that there’s a full pipeline of opportunity here to extend that mine significantly with the Dark Horse discovery,” Akerley said.
The Dark Horse gold prospect is located about 2 kilometers to the north of the Bayan Khundii open pit mine site.
“We’re very confident that this is a long-life opportunity and one that, as we continue to build out our exploration opportunities, we’ll look at expansion opportunities,” Akerley said.
Erdene also recently announced that it has finalized its strategic alliance with Mongolian Mining Corporation (MMC).
MMC has invested US$40 million in Erdene’s Mongolia subsidiary Erdene Mongol LCC. It holds a 50% stake in that company and retains a 5% net smelter return royalty on production the Khundii, Altan Nar and Ulaan licenses, as well as any properties acquired within a 700-square kilometer area of interest, after the first 400,000 ounces gold recovered.
“The strengths the MMC brings on the mining side are not comparable in Mongolia,” Akerley told Proactive.
“They have great strengths in both the construction and operation side and they have a number of affiliated companies that bring other strengths that we would see us needing in the development side of this full district.”
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.