Erdene Provides Third Quarter Financial and Bayan Khundii Gold Project Update

HALIFAX, Nova Scotia, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to announce operating and financial results for the three and nine months ended September 30, 2020 and to provide an update on the Bayan Khundii Gold Project. This release should be read in conjunction with the Company’s Q3-2020 Financial Statements, MD&A and Annual Information Form, available on the Company’s website or SEDAR.

Quotes from the Company:

“We made significant progress during the third quarter on our two core objectives of advancing the Bayan Khundii Gold Project (“Bayan Khundii” or “BK”) towards development and expanding high-grade gold resources in the Khundii Gold District,” said Peter Akerley, Erdene’s President and CEO.

“The recently announced BK Feasibility Study results demonstrate the strong economics of the high-grade Project, employing conventional mining and processing techniques,” continued Mr. Akerley. “With the proceeds from the August 2020, C$20 million equity raise and the execution of a debt financing mandate letter with Export Development Canada, we have visibility to the funding required for development. Construction readiness activities are underway as we fast track to production on this foundational project.”

“On the resource expansion front, the first results from the 18,000 metre Khundii District Gold drill program launched in August were very positive,” concluded Mr. Akerley. “We intersected multiple zones of high-grade gold around the BK economic pit and at the Dark Horse prospect identified in late 2019. The second, 8,000 metre phase of this program kicked off last week and is scheduled to run through to the end of the year. We see the potential to meaningfully add resources in our Khundii Gold District through exploration given the multitude of high-potential targets on license and results to date.”

Q3-2020 Highlights and Subsequent Events:

Bayan Khundii Gold Project – 100% Erdene

• Announced positive results of the BK BFS on July 20 (results at US$1,400/oz gold price, unless noted):

• After-tax Net Present Value of US$100 million (NPV5%) and 42% Internal Rate of Return (IRR), increasing to US$216 million and 77% IRR, respectively, at a gold price of US$1,800/oz
• Life of Mine Earnings Before Interest, Taxes and Depreciation of US$257 million, increasing to US$400M at a US$1,800/oz gold price
• 381,700 ounces gold recovered over the initial phase of the Khundii Gold District development
• All-in sustaining cost (“AISC”) of US$733/oz and upfront capital expenditure of US$59 million
• Measured and Indicated Resources of 521,000 ounces gold at an average grade of 3.16 g/t gold
• Proven and Probable Reserves of 409,000 ounces gold at an average grade of 3.71 g/t gold
• Average annual gold production of 63,500 ounces, including 77,600 ounces in Year 2
• Eight-year project, including one-year pre-production, six-year operating life and one-year closure
• Payback period of less than 2 years
• Adjacent high-grade resources and recent discoveries provide excellent growth opportunities
• Significant benefits to Mongolia, including Life of Mine royalties and taxes of US$103 million and approximately 400 new direct jobs in Bayankhongor Province

• Commenced construction readiness activities for the Bayan Khundii Gold Project: