Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) provided an update on its Bayan Khundii Gold Project, currently under construction, and shared results from shallow drilling in the initial mining areas.
Results from the first phase of the ore control drilling confirmed the high-grade nature of the deposit, consistent with the reserve model, according to a statement from the company.
Key highlights included 3 metres at 70.61 g/t gold, including 1 metre at 198 g/t. Another hole intersected 3 metres at 33.29 g/t, with 1 metre at 99 g/t. Another standout returned 4 metres at 21.7 g/t, including 2 metres at 41.55 g/t.
Additional holes intersected 13 metres at 3.68 g/t, and hole 23927, with 5.7 metres at 14.82 g/t, including 1 metre at 68.2 g/t.
Exploration drilling on the periphery of the economic pit has also been completed, with results expected soon.
A 13,500-metre reverse circulation (RC) drilling program is set to begin shortly, aimed at finalizing the mine plan before mining starts.
Erdene has hired and trained around 90 equipment operators from the local Bayankhongor province. Operations will focus initially on the Bayan Khundii pit, with a satellite pit at the Dark Horse Mane deposit expected to start in year three.
The company aims for an annual production rate of 650,000 tonnes of ore with an average gold grade of 4 g/t, producing 86,900 ounces of gold annually during peak years.