Erdene Provides Update on the Bayan Khundii Gold Project

HALIFAX, Nova Scotia, Sept. 12, 2023 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) (“Erdene” or the “Company”) is pleased to provide an update on progress at its high-grade, open-pit Bayan Khundii Gold Project (“Bayan Khundii”, “BK” or "Project”) in southwestern Mongolia.

Quotes from the Company:

“Development activities at the Bayan Khundii Gold Project are underway with the early works phase of the Project nearing completion,” 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 price.”

“With the finalization of the updated Bayan Khundii Project Feasibility Study, we are working to lock in the project financing in advance of a formal construction decision,” continued Mr. Akerley. “Through our Strategic Alliance with Mongolian Mining Corporation (“MMC”), Mongolia’s largest independent miner, we are targeting first gold and cash flow in 2025, while we continue to explore, discover and develop the other mineral deposits in our Khundii Minerals District.”

Early Works and Site Establishment

Erdene executed an early works contract with MCS Properties (“MCSP”), an affiliate of MMC near the end of Q2-2023. MCSP is one of Mongolia’s largest engineering and construction companies, with a staff of over 1,500, including 225 engineers. Established in 1999, MCSP is a major contractor to Mongolia’s mining industry, constructing critical infrastructure for the Oyu Tolgoi copper-gold mine as well as MMC’s Ukhaa Khudag (“UHG”) metallurgical coal operations.

The early works contract scope includes final design and engineering works, establishment of temporary construction facilities, including camp, fuel station, aggregate crushing and concrete batch plant, and bulk earthworks. Work is largely complete under this contract, with aggregate and concrete batch plants established, construction office and accommodations erected, bulk earthworks, including site levelling and process plant footing excavation well progressed, and off-site and on-site road improvements largely complete. In aggregate, the early works phase of the project represents approximately 5% of the total construction effort. Pictures of early works progress are attached to this release. Approximately 80,000 work hours have been recorded at the Bayan Khundii Project Site under the early works contract without lost time incidents or environmental infractions.