Erdene Announces Year-End Results and Provides Bayan Khundii Project Update

HALIFAX, Nova Scotia, April 02, 2024 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to announce operating and financial results for the year ended December 31, 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 2023 Financial Statements and MD&A, available on the Company’s website and SEDAR+.

Peter Akerley, Erdene’s President and CEO stated, “The past year was a transformative period for Erdene with the striking of our Strategic Alliance with Mongolian Mining Corporation (“MMC”), Mongolia’s leading publicly traded mining company, the commencement of construction at the Bayan Khundii gold project and continued exploration success across the Khundii Minerals District.”

He continued, “The Bayan Khundii gold mine is one of the highest grade, open pit gold mines under development globally and will be Mongolia’s largest primary gold producer when it reaches full production. With early works complete, project finance secured, long-lead orders now arriving to site and the 2024 construction season underway, we are on track to produce first gold at Bayan Khundii in Q2 2025.”

Mr. Akerley concluded, “Exploration during the 2023 field season further expanded mineralization in our Khundii Minerals District, located in an under-explored, world-class gold and copper belt. We have established a pipeline of high-quality projects, including high-grade gold satellite deposits to Bayan Khundii, the large Altan Nar gold-polymetallic deposit and the vast Zuun Mod molybdenum-copper porphyry resource. We plan to work with our strategic partner MMC to build upon our exploration success to unlock new opportunities for the Mongolian mining sector, increase the industry’s contribution to the national economy and create long-term value for Erdene shareholders.”

2023 Highlights and Significant Subsequent Events:

Image: Bayan Khundii Gold Project Construction Site
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/698e9208-68d0-44db ...

Bayan Khundii Gold Project

• Announced formal construction decision for Bayan Khundii on January 15, 2024
  • Awarded the Project’s Engineering, Procurement and Construction (“EPC”) services contract to MCS Property LLC (“MCSP”), a leading Mongolian construction firm and affiliate of MMC
  • Entered a power purchase agreement (“PPA”) with MCS International LLC (“MCSI”), a long-standing energy services and power generation company and affiliate of MMC
  • Construction ramp-up starting in February 2024 with substantial completion scheduled for end of 2024 – commissioning scheduled for Q1 2025 and first gold planned in Q2 2025
• Completed early works, site establishment and major procurement for the Bayan Khundii Gold Mine
  • Early works and site establishment, including installation of temporary facilities and process plant civils and footings complete – represents ~12% of total project construction
  • Approximately 330 employees and contractors on site during peak – no lost time incidents
  • Long lead and critical equipment orders on track with first deliveries received in late Q4 2023
• Delivered Bayan Khundii NI 43-101 Feasibility Study Update (US$1,800/oz gold price, unless noted)
  • Base Case after-tax NPV5% of US$170 million and Internal Rate of Return (“IRR”) of 35% increasing to US$223 million and 42%, respectively, at gold price of US$2,000/oz
  • Life of Mine Earnings Before Interest, Taxes and Depreciation of US$451 million, increasing to US$540 million at a US$2,000/oz gold price
  • Total recovered gold of 476,000 ounces, a 25% increase compared to the 2020 FS with 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 pre-production costs of US$2 million
  • 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
  • Adjacent high-grade resources and recent discoveries provide high probability growth options  
• Delivered on increased community and stakeholder commitments
  • Conducted equipment operator training for 80 residents of Bayankhongor province, the majority of who entered full-time operator employment at MMC to gain further experience before deploying to Bayan Khundii for the start of operations planned in 2025
  • Completed community support projects, including the installation of a municipal potable water treatment facility, public education sanitation facilities and herder livelihoods support initiatives
  • Remitted 2023 annual planned donations to local government development programs, in accordance with the statutory Local Cooperation Agreement