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Erdene updates feasibility study for Mongolia gold mine

15th August 2023

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Canadian miner Erdene Resource Development (ERD) is working towards achieving first gold and cash flow from the Bayan Khundii mine, in Mongolia, in about two years’ time, president and CEO Peter Akerley said on Tuesday.

Bayan Khundii will be one of the highest grade openpit gold mines in the world, and Mongolia’s biggest primary gold producer, when it comes on stream in 2025.

The mine will produce an average of 74 200 oz/y at an all-in sustaining cost of $869/oz over its 6.5-year mine life, according to an updated feasibility study.

Total recovered ounces increased to 476 000 oz – a 25% increase compared with the 2020 feasibility study, owing to the incorporation of additional resources from Bayan Khundii and the Dark Horse Mane deposit.

The newly released study confirmed the project’s strong economics, with a base-case after-tax net present value of $170-million, using a 5% discount, and an internal rate of return of 35.5%.

“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 Akerley.

“Through our strategic alliance with MMC, Mongolia’s largest independent miner, we are moving rapidly towards production. Early construction works are under way 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.”

Edited by Creamer Media Reporter

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