Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) during the first quarter of 2024 advanced its Bayan Khundii gold in Mongolia, being developed with the Mongolian Mining Corporation (MMC).
By the quarter's end, construction was approximately 15% complete and it continues to proceed on schedule and to budget, Erdene CEO Peter Akerley said.
More than 400 personnel are on site and working towards the project producing its first gold in the second quarter of 2025.
“During the first quarter, Erdene and MMC closed their Strategic Alliance and formally launched construction of the Bayan Khundii gold project, one of the highest grade, open pit gold mines under development globally,” Akerley said.
“Bayan Khundii will be Mongolia’s largest primary gold producer when it reaches full production, providing new opportunities for the Mongolian mining sector, increasing the industry’s contribution to the national economy and creating long-term value for Erdene shareholders.”
Akerley also highlighted the launch of the company’s 2024 exploration program during the first quarter which seeks to expand mineralization in the Khundii Minerals District, a gold and copper belt.
“Ground-truthing of high-potential drill targets at Dark Horse and Ulaan commenced in Q2 along with surface exploration of Zuun Mod gold and copper targets and other regional exploration work,” he said.
For Q1, the company posted a net loss of $2.7 million compared to net income of $5.4 million in the year-ago quarter due to higher exploration and evaluation expenses of about $780,000 and the timing of annual staff performance bonuses and stock options grants in Q1 instead of Q2 last year.
Corporate and administrative expenses were $2.7 million as the company recognized financing costs following the close of the Bayun Khundii project during the quarter and due to the timing of annual staff performance bonuses and stock options grants.