Erdene Resource Development
Corp. (TSX:ERD; MSE:ERDN)
("Erdene" or the "Company") is
pleased to announce results of an updated independent Feasibility
Study (“FS”) for the high-grade, open-pit Bayan Khundii Gold
Project (“BK” or "Project”) in southwest Mongolia. The FS was
prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects (“NI 43-101”) and incorporates
updated mineral resources and reserves, including maiden resources
and reserves from the high-grade Dark Horse Mane deposit (“DH”), as
well as current capital and operating cost estimates and metals
prices. The updated FS has been prepared by a consortium of
International and Mongolian firms with significant experience
operating in Mongolia and internationally. The Technical Report,
prepared by O2 Mining Limited, pursuant to NI 43-101 guidelines,
will be filed on SEDAR within 45 days.
Quotes from the Company:
“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.
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,” said Peter Akerley, President and CEO.
“As a low cost project utilizing conventional mining and processing
techniques with significant growth potential, Bayan Khundii offers
investors and stakeholders exposure and leverage to gold.”
“Bayan Khundii is the first development in what
we expect to be a large-scale mining complex in Southwestern
Mongolia. We have a multitude of expansion opportunities in our
pipeline as we continue to add precious and base metal resources
through exploration,” continued Mr. Akerley. “Through our Strategic
Alliance with MMC, Mongolia’s largest independent miner, we are
moving rapidly towards production. Early construction works are
underway and we look forward to achieving first gold and cash flow
in 2025, while we continue to explore, discover and develop the
other mineral deposits in our Khundii Minerals District.”
“With MMC’s investment under the Strategic
Alliance agreement, we have secured the equity component of Project
Finance. We are also well progressed on debt funding for the
Project,” concluded Mr. Akerley. “Leading international financial
institutions have completed the bulk of the technical,
environmental and social due diligence on the project over the past
couple of years. With the delivery of the updated feasibility
study, we expect to receive firm commitments in the coming
months.”
NI 43-101 Technical Report Overview
The Technical Report incorporates an updated
reserve estimate for the BK Gold Deposit as well as the maiden
mineral reserve estimate from the very high-grade Dark Horse Mane
Gold Deposit. The FS includes 3.8 million mineable tonnes from the
Bayan Khundii resource at an average diluted head grade of 3.8 g/t
gold and 1.8 g/t silver, and 0.2 million mineable tonnes from the
Dark Horse resource at an average diluted head grade of 7.0 g/t
gold, all of which are Proven and Probable Reserves.
The Technical Report envisions a high-grade,
open-pit mine, beginning at surface in the southern portion of the
BK Gold Deposit (Striker and Gold Hill), and expanding northward
into adjacent zones at Midfield and Midfield NE. Dark Horse open
pit will commence in Year 3 and will be processed concurrently with
BK Gold Deposit ore. The development incorporates conventional
crushing and grinding, leach and a Carbon in Pulp (“CIP”) plant
with processing capacity of 1,935 tonnes per day.
The base case assumes a gold price of
US$1,800/oz. All references to dollars within this release are US
Dollars (US$), unless stated otherwise. The Technical Report,
pursuant to NI 43-101 guidelines for the Bayan Khundii FS will be
filed on SEDAR within 45 days. Key metrics from the Technical
Report are presented in Table 1 below.
Table 1. Bayan Khundii Gold Project Key
Metrics
|
|
BK FS |
Gold Price |
US$/oz |
1,800 |
Production Profile |
|
|
Average Head Grade Over Life of Mine1 |
g/t gold |
4.0 |
Project Life2 |
years |
8 |
Operating Life |
years |
6.75 |
Target Plant Feed Rate Per Day3 |
tpd |
1,935 |
Average Annual Saleable Gold |
oz |
74,200 |
Peak Annual Saleable Gold |
oz |
88,100 |
Average Gold Recovery Rate Over Life of Mine |
% |
93% |
Strip Ratio |
t:t |
10.9 |
Operating Costs |
|
|
Life of Mine (“LOM”) Average Cash Cost4 |
US$/oz |
851 |
LOM Cash Cost plus Sustaining Cost (AISC)4 |
US$/oz |
869 |
Pre-Tax Net Present Value |
|
|
5% discount rate |
US$M |
245 |
7.5% discount rate |
US$M |
207 |
10% discount rate |
US$M |
175 |
Pre-Tax Internal Rate of Return |
% |
44% |
After-Tax Net Present Value |
|
|
5% discount rate |
US$M |
170 |
7.5% discount rate |
US$M |
141 |
10% discount rate |
US$M |
117 |
After-Tax Internal Rate of Return |
% |
35% |
Payback Period (After tax) |
years |
2.4 |
Capital Requirements |
|
|
Pre-production Capital Cost, including contingency |
US$M |
100 |
Life of mine (“LOM”) Remaining Capital Cost |
US$M |
9 |
Notes:
- Average diluted head grade of
mineralized rock fed to process plant.
- Project life
comprising one-year pre-production period, approximately
six and three quarter-year operating life and one-year mine closure
period.
- Assumes process plant operates for
8,000 hours per annum to achieve the target production rate of 650
ktpa.
- Operating costs
reported in terms of saleable gold ounces for Bayan Khundii; costs
include Royalty and Charges of US$108/oz.
Technical Report
Sensitivities
The following table shows changes in the
after-tax NPV and IRR over a range of gold prices and discount
rates, demonstrating the impact of higher gold prices and the
Project’s resiliency to lower prices.
Table 2. Technical Report Sensitivities –
After-Tax Gold Price Sensitivity Analysis
Gold Price Sensitivity Analysis |
Units |
US$1,400 |
US$1,600 |
US$1,800 |
US$2,000 |
US$2,200 |
NPV (5% discount rate) |
US$M |
65 |
118 |
170 |
223 |
275 |
NPV (7.5% discount rate) |
US$M |
48 |
95 |
141 |
188 |
234 |
NPV (10% discount rate) |
US$M |
34 |
76 |
117 |
158 |
200 |
IRR |
% |
18% |
27% |
35% |
42% |
49% |
Bayan Khundii Mineral Resource and
Reserve Estimate
BK Gold Deposit Mineral Resource
Estimate
The BK Gold Deposit Mineral Resource Estimate
(“BK Mineral Resource”) was prepared in accordance with NI 43-101
and CIM standards by AGP Mining Consultants Inc. (“AGP”) with an
effective date of April 20, 2023. The BK Mineral Resource was
prepared by Paul Daigle, P.Geo., who is a qualified person (“QP”)
as defined by NI 43-101.
The Mineral Resource has been constrained to a
conceptual pit shell and is reported at a cut-off grade of 0.40 g/t
gold. The assumptions and parameters utilized to establish the
cut-off grade and pit shell are reported below in notes to Table 3.
AGP recommends reporting the Bayan Khundii Mineral Resource at a
0.40 g/t gold cut-off.
Table 3. BK Gold Deposit – Mineral Resource
Estimate Summary, April 2023
ResourceClassification |
Quantity(Mt) |
Gold Grade(Au g/t) |
Ounces Gold(Koz) |
Silver Grade(Ag g/t) |
Ounces Silver(Koz) |
Measured |
4.0 |
3.03 |
394 |
1.44 |
187 |
Indicated |
3.3 |
2.04 |
219 |
1.22 |
131 |
M&I |
7.4 |
2.58 |
613 |
1.34 |
319 |
Inferred |
0.2 |
1.08 |
6 |
1.32 |
8 |
Notes:
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- Summation errors may occur due to rounding.
- The effective date of the Mineral Resources is April 20,
2023.
- Open pit mineral resources are reported within an optimized
constraining shell.
- Open pit cut-off grade is 0.3 g/t Au based on the following
parameters:
- Gold Price of US$2,000/oz Au
- Gold recovery of 95%
- Mining Costs of US$3.00/t
- Milling Costs and G&A of $22.00/t
- Capping of gold grades was 200 g/t Au and 50 g/t Ag on 1m
composite values.
- The density varies between 2.58 g/cm3 and 2.66 g/cm3 depending
on lithology.
Dark Horse Mane Mineral Resource
Estimate
The Company is pleased to provide a summary of
the maiden mineral resource estimate for the Dark Horse Mane Gold
Deposit (“Dark Horse Mineral Resource”) discovered in 2021 and
located just two kilometres north of the BK Gold Deposit. The Dark
Horse Mineral Resource was prepared in accordance with NI 43-101
and CIM standards by RPM Global (“RPM”) with an effective date of
November 1, 2022. The Dark Horse Mineral Resource was prepared by
Mr. Oyunbat Bat-Ochir who is a full-time employee of RPM and a
Member of the Australian Institute of Geoscientists, and a QP as
defined by NI 43-101.
The Dark Horse Mineral Resource is reported
above a gold cut-off grade of 0.35 g/t gold for oxide and
transition mineralization and 1.02 g/t gold for fresh
mineralization. The Mineral Resource has been constrained to a
conceptual pit shell. The assumptions and parameters utilized to
establish the cut-off grade and pit shell are reported below in
notes to Table 4.
Table 4. Dark Horse Gold Deposit – Mineral
Resource Estimate Summary, November 2022
|
Indicated Mineral Resource |
Inferred Mineral Resource |
Type |
Tonnes |
GoldGrade |
OuncesGold |
Tonnes |
GoldGrade |
OuncesGold |
|
(Kt) |
g/t Au |
(K oz) |
(Kt) |
g/t Au |
(K oz) |
Oxide |
578 |
3.0 |
56.2 |
75 |
1.1 |
2.7 |
Transitional |
99 |
1.5 |
4.8 |
109 |
1.2 |
4.1 |
Fresh |
5 |
4.9 |
0.7 |
- |
- |
- |
Total |
682 |
2.8 |
61.7 |
184 |
1.2 |
6.8 |
Notes:
- The Statement of Estimates of
Mineral Resources has been compiled under the supervision of Mr.
Oyunbat Bat-Ochir who is a full-time employee of RPM and a Member
of the Australian Institute of Geoscientists. Mr. Bat-Ochir has
sufficient experience that is relevant to the style of
mineralization and type of deposit under consideration and to the
activity that he has undertaken to qualify as a Qualified Person as
defined in the CIM Standards of Disclosure.
- All Mineral Resources figures
reported in the table above represent estimates at November 1,
2022. Mineral Resource estimates are not precise calculations,
being dependent on the interpretation of limited information on the
location, shape and continuity of the occurrence and on the
available sampling results. The totals contained in the above table
have been rounded to reflect the relative uncertainty of the
estimate. Rounding may cause some computational discrepancies.
- Mineral Resources are reported on a
dry in-situ basis.
- The Mineral Resource is reported
using a 0.35 g/t Au cut-off grade in oxide and transition
mineralisation and 1.02 g/t Au cut-off in fresh mineralisation and
is constrained above conceptual optimised pit shell. Cut-off
parameters were selected based on an RPM internal cut-off
calculator, assuming an open cut mining method with 5% ore loss and
10% dilution, a gold price of US$1,723 per ounce, a mining cost of
US$3 per tonne and a processing cost of US$16 per tonne milled and
processing recovery of 90% for oxide, 87% for transitional and 30%
for fresh Au mineralisation. The conceptual optimised pit shell was
constructed using a gold price of US$2,000 per ounce, which is 1.4
times the long-term consensus forecast price.
- Mineral Resources referred to
above, have not been subject to detailed economic analysis and
therefore, have not been demonstrated to have actual economic
viability.
BK and DH Reserve Estimate
The Bayan Khundii and Dark Horse FS Mineral
Reserves have been estimated by QP, Mr. Julien Lawrence, Director,
O2 Mining Limited, using the 2014 CIM Definition Standards for
Mineral Resources and Mineral Reserves to conform to the Canadian
National Instrument 43-101 Standards of Disclosure for Mineral
Projects. The total Mineral Reserve for the Bayan Khundii deposit
is shown in Table 5 and the total Mineral Reserve for the Dark
Horse Mane deposit is shown in Table 6. Mineral Reserves are based
on the BK Mineral Resource and Dark Horse Mineral Resource,
reported herein. Mineral Reserves estimated for the BK and DH
deposits are based on Measured and Indicated Resources and have an
effective date of August 1, 2023. Reserves were calculated by O2
Mining using FS level engineering designs for the pit and
associated process plant operating parameters.
The cut-off grade for mineral reserve
calculations is 0.63 g/t gold for the BK Gold Deposit and 0.68 g/t
gold for Dark Horse Gold Deposit, based on a gold price of
$1,816/oz. The reserves, as defined by the regularized block model,
contain modelled mineral losses of 2.5% and average internal
dilution of 10%, within the ultimate pit.
A summary of the Mineral Reserves estimated for
the BK and Dark Horse deposit with an effective date of August 1,
2023 can be found in Tables 5 and 6.
Table 5. BK Gold Deposit – Mineral Reserve
Estimate Summary, August 1, 2023
Classification |
Tonnage (Mt) |
Grade (g/t Au) |
ContainedGold (Koz) |
Grade (g/t Ag) |
ContainedSilver (Koz) |
Proven |
2.7 |
4.1 |
360.2 |
1.7 |
159.4 |
Probable |
1.1 |
3.0 |
104.7 |
1.7 |
61.1 |
Total |
3.8 |
3.8 |
464.9 |
1.7 |
220.5 |
Table 6. Dark Horse Gold Deposit – Mineral
Reserve Estimate Summary, August 1, 2023
Classification |
Tonnage (Mt) |
Grade (g/t Au) |
Contained Gold (Koz) |
Proven |
- |
- |
- |
Probable |
0.2 |
7.0 |
48.8 |
Total |
0.2 |
7.0 |
48.8 |
Notes:
- The effective date of the Mineral
Reserve estimate is August 1, 2023. The QP for the estimate is Mr.
Julien Lawrence of O2 Mining Limited;
- The Mineral Reserve estimates were
prepared with reference to the 2014 Canadian Institute of Mining,
Metallurgy and Petroleum (“CIM”) Definition Standards (2014 CIM
Definition Standards) and the 2003 CIM Best Practice
Guidelines;
- Reserves estimated assuming
open-pit mining method;
- Waste to ore cut-offs were
determined using a NSR for each block in the model. NSR is
calculated using prices and process recoveries for each metal
accounting for all off-site losses, transportation, smelting and
refining charges;
- Reserves are based on a gold price
of $1,816/oz; and
- Mineral Reserves were calculated
from a diluted “mining” block model which included average dilution
of 10% and losses of 2.5%.
Mining
The BK FS is based on an open-pit mining
operation targeting 650,000 tonnes per year of feed material for
the processing plant. The total mineable mineralized plant feed is
4.0 million tonnes at an average diluted head grade of 4.0 g/t gold
and average strip ratio of 10.9:1 (waste tonne: plant feed tonne).
Mineralization starts at surface, with the majority of the deposit
contained within the top 100 metres. The deposit structure, grades
and depth suggest selective open cut mining will be utilized.
Mining will use hydraulic excavators in backhoe configuration.
Drilled and blasted material will be loaded into haul trucks, with
waste rock deposited in an engineered Integrated Waste Facility
(“IWF”) adjacent to the pit, and ore hauled to a crusher or
run-of-mine (“ROM”) pad adjacent to the processing plant.
The BK FS has assumed owner mining based on
methodology and costing prepared from first principles using vendor
quotations for major cost elements and O2 Mining experience in
Mongolia in similar open-pit mining environments. In this scenario,
the owner leases the major fleet and provides for all minor fleet
and personnel to operate the project. The mine plan proposes a
total of 4 x excavators (2 x ore, 2 x waste), 20 x 55t payload
trucks, 3 x blasthole drills and a fleet of ancillary and support
equipment to deliver the required material movement. The mining
workforce peaks at approximately 260 personnel (employees and
contractor personnel) to deliver the required schedule of
production.
Processing
The FS assumes processing of ROM material via a
conventional crush and grind circuit and a carbon in pulp plant.
Plant design by 360-Global has been based on testing at Blue Coast
Research which has established optimal processing parameters,
including; grind size of 80% passing 60 microns; design inputs for
comminution circuit, optimal cyanide concentration in leach
circuit; 36 hour retention time; carbon adsorption parameters and
detoxification reagent dosages. The process circuit has been
designed to maximize water recovery with the most efficient
dewatering process (pressure filters) to achieve targeted 15%
moisture in tailings, minimize chemical and reagent usage and
reduce environmental impact.
The ore-processing plant will be located
adjacent to the Bayan Khundii open pit and throughput will target
650,000 ore-tonnes per year, nominally 1,935 tonnes per day. Total
mineralized material from BK, processed in the plant over the
course of the mine life, is 4.0 million tonnes at an average
diluted head grade of 4.0 g/t gold. Using an estimated mill
recovery of 92.6%, total recovered gold over the life of the Bayan
Khundii Project is 476,000 ounces.
Operating Costs
Operating costs are based on the mining and
processing scenarios outlined above and assume owner mining. Power
for operations will be generated through an on-site hybrid diesel
and solar generation solution, provided under a power purchase
agreement for the duration of the Project. All other activities are
assumed to be owner-operated. The AISC for Bayan Khundii is
estimated at $869/oz.
Table 7. Operating Costs
|
LOM ($ millions) |
US$/oz |
US$/tonne |
Mine Operating Cost |
165 |
347 |
41 |
Processing Cost |
166 |
349 |
41 |
G&A |
20 |
43 |
5 |
Total Site Operating Costs |
352 |
739 |
88 |
Royalty and Charges |
51 |
108 |
13 |
Sustaining Capital & Closure Costs |
10 |
22 |
3 |
All-In Sustaining Cost |
414 |
869 |
103 |
Note: Rounding may cause computational
discrepancies
Capital Costs
Construction costs, primarily comprising the
process plant and supporting infrastructure, accommodation village,
and associated engineering and indirect costs are estimated at
US$88 million. Pre-production costs, including first fills and
mobile site equipment total $2 million. Additionally, a 12%
contingency, or US$10 million, has been provided in arriving at the
total estimated capital cost. Sustaining capital of US$4 million
has been included in the mine plan and net mine closure costs are
estimated at US$7 million, accounting for salvage values. Total
life of mine capital expenditures for the Bayan Khundii Gold
Project are estimated at US$109 million. Approximately $5 million
of costs have been incurred to date, representing deposits on
long-lead mechanical equipment, temporary construction facilities
and civil works.
Table 8. Capital Costs
Item |
$ millions |
Process Plant |
47 |
Non-Process Infrastructure |
14 |
Construction Indirects |
27 |
Construction Costs |
88 |
Pre-Production Costs |
2 |
Contingency |
10 |
Subtotal Plant and Infrastructure |
100 |
Sustaining Capital |
4 |
Reclamation and Mine Closure |
7 |
Salvage |
(2) |
Total |
109 |
Note: Rounding may cause computational
discrepancies
Environmental and
Permitting
Erdene completed an independent Environmental
and Social Impact Assessment (“ESIA”) for the Project in accordance
with the Performance Requirements of the European Bank for
Reconstruction and Development (“EBRD”) in 2020. Subsequently, the
Mongolian statutory Detailed Environmental Impact Assessment
(“DEIA”) for the Project was approved by the Mongolian Government
in 2021. Additional studies were carried out in 2021 and 2022 as
part of the expected Project Lender’s due diligence.
Erdene has obtained approvals for the 12 project
facilities that the company will own and operate. Construction
permits have been issued for nine of these facilities, including
the CIP Process Plant, and earthworks for several facilities is
currently underway.
Project Finance and Next
Steps
The Company engaged HCF to act as Project
Finance advisor, with primary responsibility for securing debt in
2020. HCF is a leading independent corporate finance advisory
boutique based in London, focused on the global natural resources
and infrastructure sectors. HCF possess significant Mongolian
experience, having acted as an advisor on the financing of Oyu
Tolgoi, Mongolia’s largest mining project, and has strong
relationships with the EBRD, a strategic investor in Erdene and one
of Mongolia’s largest foreign investors.
Two international financial institutions have
conducted due diligence on BK and are expected to provide debt
financing for the project. These institutions are active in
Mongolia, as major funders to the Oyu Tolgoi Copper-Gold project.
It is anticipated that senior debt financing could comprise as much
as 65% of the total financing package.
The equity capital for the project has been
secured from the Mongolian Mining Corporation through the Strategic
Alliance Agreement announced January 10, 2023 (see press release
here). Highlights of the SAA include:
- MMC is Mongolia’s largest
internationally traded mining company, listed on the main board of
the Hong Kong Stock Exchange (HKEx: 975).
- MMC to invest US$40 million for a
50% equity interest in Erdene’s Mongolian subsidiary, Erdene Mongol
LLC (“EM”), holding the Khundii and Altan Nar mining licenses and
the Ulaan exploration license through a three-stage transaction,
based on achievement of milestones.
- Erdene retains a 50% equity
interest in EM and a 5.0% Net Smelter Return (“NSR”) royalty
on all production from the Khundii, Altan Nar and Ulaan
licenses, as well as any properties acquired within 5
kilometres of these licenses, beyond the first 400,000 ounces
gold recovered.
- The first two stages of the
transaction were completed in January 2023 and May 2023, with
MMC investing US$10 million to finance technical studies,
including this FS, early construction works and exploration for the
Bayan Khundii Gold Project.
- The third stage of the transaction,
expected to close in late Q3 2023, will see MMC invest a further
US$30 million once EM has reached a construction decision,
providing equity capital for the Bayan Khundii Gold
Project.
- Erdene will appoint EM’s Chief
Executive and Chief Technical Officers, and MMC will appoint
EM’s Chief Operating and Chief Financial Officers.
- Erdene maintains a 100% interest in
its large Zuun Mod Molybdenum-Copper deposit and Khuvyn Khar
Copper project, located approximately 30 kilometres east of
Bayan Khundii, and adjacent to a planned railway development.
In addition to project financing, over the
coming months, development work will be focused on:
- Continuing with construction early
works;
- Executing the Engineering,
Procurement and Construction contract for the Project;
- Concluding the Project’s Power
Purchase Agreement;
- Optimizing the project execution
schedule and completing value engineering;
- Securing approval of Erdene and
MMC’s Boards of Directors to begin construction; and
- Exploring in the Khundii Minerals
District to expand mineralization and convert resources to
reserves.
Study Consultants
The updated FS and associated Detailed
Engineering and Design (“DED”) work has been completed by a
consortium of International and Mongolian firms with significant
experience:
- O2 Mining Ltd. (“O2”) led the
overall delivery of the FS update, completing the key works of mine
design and planning (including closure), process design, cost
estimation, and financial evaluation. O2 is a Hong Kong-based
engineering firm with principals who have over 15 years of
Mongolian mining experience and a team with significant experience
in mine development in Australasia, including the design,
construction, commissioning and operation of gold, coal, base
metals and industrial mineral mines and processing facilities.
- Roma Group Ltd. (“Roma”), a leading
company in the region in engineering, business and asset
valuations, corporate and M&A advisory services, will lead the
development of the final NI 43-101 FS Technical Report. Roma is
listed on the Hong Kong Stock Exchange and has extensive experience
working with major regional mining and financial firms leading
technical studies and valuations for mining projects in Asia,
including Mongolia.
- Multiple Mongolian companies
provided in-country services and support for the FS update. Erdene
works closely with local specialists to apply international
standards and ensure compliance with Mongolian regulations.
-
360-Global Inc. (“360-Global”) carried out process plant design and
engineering for the FS and DED work. 360-Global is a consulting
firm based in the Philippines, specialized in full cycle design
services and experienced with gold processing infrastructure
globally, including in Mongolia, China, Canada, Australia and
Africa.
-
ATC Williams Pty Ltd, (“ATCW”) undertook mineral waste and tailings
facility design and management planning, including for closure.
ATCW is Australia-based and has extensive experience in mineral
waste and tailings transport, storage, closure and water
management, including at the Oyu Tolgoi project in Mongolia.
-
Blue Coast Research Ltd (“BCR”) provided metallurgical testing and
interpretation for the Bayan Khundii Gold Project. BCR have
extensive experience with gold deposits and have carried out all of
the Bayan Khundii, Dark Horse, and Altan Nar metallurgical test
work to date.
-
Ramboll Australia Pty performed technical review and assessment of
the mine water supply and pit hydrology. Ramboll is a global
architecture, engineering, and consultancy company involved in
buildings, transport, energy, environment & health, water,
management consulting, architecture and landscape.
-
Fugro Ltd. provided the geotechnical assessment of the Bayan
Khundii and Dark Horse open pits. Fugro is a leading geo-data
specialist.
-
AGP Mining Consultants Inc. completed the mineral resource estimate
for the Bayan Khundii Gold deposit. AGP is a full service,
independent mine engineering company.
-
RPM Global Inc. completed the mineral resource estimate for the
Dark Horse Gold Deposit. RPM Global is an international provider of
advisory and consulting, software, and training services focused on
the mining industry.
-
Sustainability East Asia LLC, Ramboll, and Eco Trade LLC delivered
the Environmental and Social Impact Assessment for the Project,
announced on June 4, 2020 (see full press release here).
Qualified Person and Sample Protocol
The information in this press release that
relates to the financial models for the Bayan Khundii Feasibility
Study is based on information compiled and reviewed by Mark
Reynolds, engaged through O2 Mining Limited. The information in
this press release that relates to the capital and operating cost
estimation for the Bayan Khundii Feasibility Study is based on
information compiled and reviewed by Julien Lawrence, who is a
FAusIMM and the Director of O2 Mining Ltd. The information in this
press release that relates to the process design and recovery
methods for the Bayan Khundii Feasibility Study is based on
information compiled and reviewed by Jeffrey Jardine, who is a
FAusIMM and is engaged through O2 Mining Ltd. The information in
this press release that relates to the BK Resource Estimate is
based on information compiled and reviewed by Paul Daigle, who is a
P.Geo, and is an employee of AGP Mining Consultants
Inc. The information in this press release that relates
to the Dark Horse Resource Estimate is based on information
compiled and reviewed by Oyunbat Bat-Ochir who is a full-time
employee of RPM Global and a Member of the Australian Institute of
Geoscientists. The information in this press release that relates
to the Bayan Khundii reserve estimate is based on information
compiled and reviewed by Julien Lawrence. Each of Mr. Reynolds, Mr.
Lawrence, Mr. Jardine, Mr. Daigle and Mr. Bat-Ochir has sufficient
experience, which is relevant to the style of mineralization and
type of deposit under consideration and to the activity which they
have undertaken to qualify as a Qualified Person, as that term is
defined by National Instrument 43-101. Each of Mr. Reynolds, Mr.
Lawrence, Mr. Jardine, Mr. Daigle and Mr. Bat-Ochir is not aware of
any potential for a conflict of interest in relation to this work
with Erdene.
All samples have been assayed at SGS Laboratory
in Ulaanbaatar, Mongolia. In addition to internal checks by SGS
Laboratory, the Company incorporates a QA/QC sample protocol
utilizing prepared standards and blanks. All samples undergo
standard fire assay analysis for gold and ICP-OES (Inductively
Coupled Plasma Optical Emission Spectroscopy) analysis for 33
additional elements. For samples that initially return a grade
greater than 5 g/t gold, additional screen-metallic gold analysis
is carried out which provides a weighted average gold grade from
fire assay analysis of the entire +75 micron fraction and three
30-gram samples of the -75 micron fraction from a 500 gram
sample.
Erdene’s drill core sampling protocol consisted
of collection of samples over 1 or 2 metre intervals (depending on
the lithology and style of mineralization) over the entire length
of the drill hole, excluding minor post-mineral lithologies and
un-mineralized granitoids. Sample intervals were based on meterage,
not geological controls, or mineralization. All drill core was cut
in half with a diamond saw, with half of the core placed in sample
bags and the remaining half securely retained in core boxes at
Erdene’s Bayan Khundii exploration camp. All samples were organized
into batches of 30 including a commercially prepared standard,
blank and either a field duplicate, consisting of two quarter-core
intervals, or a laboratory duplicate. Sample batches were
periodically shipped directly to SGS in Ulaanbaatar via Erdene’s
logistical contractor, Monrud Co. Ltd.
About Erdene
Erdene Resource Development Corp. is a
Canada-based resource company focused on the acquisition,
exploration, and development of precious and base metals in
underexplored and highly prospective Mongolia. The Company has
interests in three mining licenses and an exploration license in
Southwest Mongolia, where exploration success has led to the
discovery and definition of the Khundii Minerals District. Erdene
Resource Development Corp. is listed on the Toronto and the
Mongolian stock exchanges. Further information is available
at www.erdene.com. Important information may be disseminated
exclusively via the website; investors should consult the site to
access this information.
Forward-Looking Statements
Certain information regarding Erdene contained
herein may constitute forward-looking statements within the meaning
of applicable securities laws. Forward-looking statements may
include estimates, plans, expectations, opinions, forecasts,
projections, guidance or other statements that are not statements
of fact. Although Erdene believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct.
Erdene cautions that actual performance will be affected by a
number of factors, most of which are beyond its control, and that
future events and results may vary substantially from what Erdene
currently foresees. Factors that could cause actual results to
differ materially from those in forward-looking statements include
the ability to obtain required third party approvals, market
prices, exploitation and exploration results, continued
availability of capital and financing and general economic, market
or business conditions. The forward-looking statements are
expressly qualified in their entirety by this cautionary statement.
The information contained herein is stated as of the current date
and is subject to change after that date. The Company does not
assume the obligation to revise or update these forward-looking
statements, except as may be required under applicable securities
laws.
NO REGULATORY AUTHORITY HAS APPROVED OR
DISAPPROVED THE CONTENTS OF THIS RELEASE
Erdene Contact Information
Peter C. Akerley, President and CEO, orRobert Jenkins, CFO
Phone: |
(902)
423-6419 |
Email: |
info@erdene.com |
Twitter: |
https://twitter.com/ErdeneRes |
Facebook: |
https://www.facebook.com/ErdeneResource |
LinkedIn: |
https://www.linkedin.com/company/erdene-resource-development-corp-/ |
YouTube: |
https://www.youtube.com/channel/UCILs5s9j3SLmya9vo2-KXoA |
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