Name of the Project
Bayan Khundii (BK) gold project.

Location
Southwest Mongolia.

Project Owner/s
Erdene Resource Development Corp.

Project Description
The project will be one of the highest-grade openpit gold mines in the world, and Mongolia’s largest primary gold producer, when it comes on stream in 2025.

An updated feasibility study completed in August 2023 reaffirmed the project’s strong economics. The study incorporates an updated reserve estimate for the BK gold deposit and the maiden mineral reserve estimate from the very high-grade Dark Horse (DH) Mane gold deposit. The feasibility study includes 3.8-million mineable tonnes from the BK resource at an average diluted head grade of 3.8 g/t gold and 1.7 g/t silver, and 200 000 mineable tonnes from the DH resource at an average diluted head grade of 7 g/t gold, all of which are proven and probable reserves.

Envisioned is a high-grade, openpit mine, beginning at surface in the southern portion of the BK deposit, and expanding northward into adjacent zones at Midfield and Midfield NE.

Mining at the DH openpit will start in Year 3 and will be processed concurrently with the BK gold deposit ore. The mine will produce 74 200 oz/y of gold on average over a 6.5-year mine life, with average gold production of 86 900 oz estimated from years 2 to 5.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5%, 7.5% and 10% discount rate, of $245-million, $207-millions and $175-million respectively, and an internal rate of return of 44%.

Capital Expenditure
Capital requirements, including contingency, are estimated at $100-million.

Planned Start/End Date
First gold is expected in 2025.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Erdene Resource Development Corp, tel +1 902 423 6419 or email info@erdene.com.