Erdene Announces Q3 2023 Results and Provides Bayan Khundii Project Update

HALIFAX, Nova Scotia, Nov. 09, 2023 (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, 2023, and to provide an update on progress at its Bayan Khundii Gold Project (“BK” or “Project”). This release should be read in conjunction with the Company’s Q3-2023 Condensed Consolidated Interim Financial Statements and MD&A, available on the Company’s website and SEDAR+.

Peter Akerley, Erdene’s President and CEO stated, “The third quarter of 2023 was a transformative period for Erdene as we began early construction works in earnest at our Bayan Khundii Gold Project. Approximately 80% of the early works scope is now complete, with temporary facilities erected, aggregate crushing and concrete batch plant established, and process plant civils well progressed.”

He continued, “Following the end of the third quarter, we received the final tranche of funding from Mongolian Mining Corporation (“MMC”) under our Strategic Alliance. Concurrently, international financial institutions are conducting due diligence on the updated Bayan Khundii Feasibility Study delivered in Q3. Financial close is anticipated in late 2023 which will position Erdene to reach a formal construction decision.”

Recent construction photos are included below:

Figure 1: Bayan Khundii Project Site Layout

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/6f5309b7-a766-4f7c ...

Figure 2: Bayan Khundii Project Process Plant Construction

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/87a31dd8-9f0d-49b2 ...

Figure 3: Bayan Khundii Project Process Plant Construction

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a6700314-0de5-48dc ...

Q3-2023 Highlights and Significant Subsequent Events:

Bayan Khundii Gold Project

• Advanced early works, site establishment and procurement for the BK Gold Project
  • Early works and site establishment, including installation of temporary facilities, aggregate production, temporary site roads and process plant civils is approximately 80% complete
  • Construction preparation is well advanced supporting critical path concrete pours in 2023
  • Headcount ramp up achieved in September with approximately 330 employees and contractors on site – no lost time incidents to date
  • Remaining detailed design and shop fabrication drawings progressing to schedule, with substantial completion forecast in Q1 2024
  • Long lead and critical equipment orders on track with first deliveries scheduled in late Q4 2023
  • Contracts for Engineering, Procurement and Construction and Power Provision agreed in principle, with execution planned in the coming weeks

• Delivered Bayan Khundii NI 43-101 Feasibility Study Update (US$1,800/oz gold price, unless noted)
  • Base Case after-tax NPV_5% of US$170 million and 35.3% Internal Rate of Return (“IRR”), increasing to US$196 million and 38.95% IRR, respectively, at gold price of US$1,900/oz   
  • Life of Mine Earnings Before Interest, Taxes and Depreciation of US$451 million, increasing to US$495 million at a US$1,900/oz gold price
  • Total recovered gold of 476,000 ounces, a 25% increase compared to the 2020 FS from an average gold recovery rate of 93%
  • All-in sustaining cost (“AISC”) of US$869 per ounce and upfront capital costs of US$88 million, plus a 12% contingency, and $2 million of pre-production costs
  • Measured and Indicated Resources of 674,700 ounces gold at an average grade of 2.6 g/t gold, and 319,000 ounces silver at an average grade of 1.38 g/t silver
  • Proven and Probable Reserves of 513,700 ounces gold at an average grade 4.0 g/t gold, and 220,500 ounces silver at an average grade of 1.7 g/t silver
  • Average annual gold production of 86,900 ounces during years 2 through 5 – Life of Mine annual average production of 74,200 ounces gold
  • Eight-year project, comprising one-year pre-production, six and three quarter-year operating life and one-year mine closure period
  • Adjacent high-grade resources and recent discoveries provide high probability growth options
  • Significant benefits to Mongolia, including Life of Mine royalties and taxes of US$143 million and approximately 500 new jobs in Bayankhongor Province
  • Updated NI 43-101 2023 FS filed on September 25, 2023

• Delivered on community and stakeholder commitments
  • Repaired and upgraded approximately 30 km of off-site roads
  • Conducted mine equipment operator training for 60 residents of Bayankhongor province, 75% of 2023 target, the majority of which went on to full-time operator employment
  • Completed major community development projects, including potable water supply improvement and public education sanitation facilities
  • Remitted 50% of 2023 annual planned donations to local government development programs, in accordance with the statutory Local Cooperation Agreement

Khundii Minerals District Exploration