Erdene Announces Q1-2022 Results and Provides Khundii GOLD District Update
TSX: ERD | MSE: ERDN
www.erdene.com 1 [email protected]
ERDENE ANNOUNCES Q1-2022 RESULTS AND
PROVIDES KHUNDII GOLD DISTRICT UPDATE
Press Release
Halifax, Nova Scotia
2022.05.12
Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the
"Company") is pleased to announce operating and financial results for the three months
ended March 31, 2022 and to provide an update on its Khundii Gold District, including its
Bayan Khundii Gold Project (“Bayan Khundii” or “BK ”). This release should be read in
conjunction with the Company’s Q1-2022 Financial Statements and MD&A, available on
the Company’s website and SEDAR.
Quotes from the Company:
“During the first quarter of 2022, we made further progress on our objectives of expanding
the Khundii Gold District , while progressing the Bayan Khundii Gold Project towards
development,” said Peter Akerley, Erdene’s President and CEO. “We’ve recently
launched the first phase of our 2022 dr ill program, that will follow up on our 2021
discoveries at the Dark Horse Mane and Ulaan Southeast prospects . These discoveries
support Erdene’s thesis that our Khundii District trend has the potential to host a
multimillion-ounce gold deposit, which could significantly increase gold production from
the Bayan Khundii Gold Project.”
“We also made solid progress advancing Bayan Khundii towards a construction decision,
despite the continued impact of COVID-19,” continued Mr. Akerley. “Engineering and
design work is largely complete and procurement is well advanced in advance of a
construction decision. We’ve also begun conceptual design work to determine the
potential impact of a scale up in production in advance of the commencement of full
construction.”
Q1-2022 Highlights and Significant Subsequent Events:
Bayan Khundii Gold Project – 100% Erdene
• Progressed construction readiness activities for the Bayan Khundii Gold Project:
• Early works completed including camp expansion, communications infrastructure
installation and project controls software implementation
• Re-pricing and tender for all major mechanical and construction works well
advanced, with anticipated completion in Q2 2022
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• Preferred vendors selected for Engineering, Procurement and Construction
Management (“EPCM”) and non -process infrastructure, including camp,
warehouse and workshop
• Key personnel onboarded and project execution plans and manuals prepared in
advance of a construction decision
• Initiated confirmatory studies for mine water supply, with results expected in Q2
2022
• Obtained key permits and a dvanced regulatory approva ls required for mine
development:
• Regulatory review of detailed drawings well advanced, with nine facilities fully
approved, including those planned during the site establishment and initial
construction – received construction permits for eight of these facilities in February
2022
• Process plant regulatory review ongoing with approvals anticipated in Q3 2022
• Continued local community programs in advance of full construction:
• Undertook several community-led programs to support public health and basic
education in the sub -province, within the framework of Local Cooperation
Agreement
• Increased employment ahead of expected early works decision in Q2 2022, with
nearly 30 local residents recruited
• Ramped up vegetation program on -site at 2 ha area for future reclamation and
environmental protection
Exploration
• Launched first phase of the 2022 exploration program, targeting 10,000 metres of
diamond and 3,000 metres of rotary air blast (RAB) drilling
• Focused on expanding high-grade gold mineralization discovered in 2021 at the
Ulaan and Dark Horse discoveries, confirming continuity at the Altan Nar Gold
Project, and testing near -surface, high -grade oxide gold targets across the
District
• First results from the program are expected to be announced in late May 2022
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Corporate
• Progressed due diligence for the Bayan Khundii Project Finance with EDC and
Mongolian financiers
• EDC mandate letter contemplates a senior secured debt facility of up to US$55
million
• EDC term sheet agreed and detail and drafting underway in advance of anticipated
mid-2022 financial close
• Due diligence is proceeding in parallel with Mongolian financial institutions on
subordinated debt
• Recorded a net loss of $1,231,156 for the t hree months ended March 31, 2022,
compared to a net loss of $617,084 for the three months ended March 31, 2021
• Exploration and evaluation expenditures totaled $2,904,572, including capitalized
expenditures of $2,122,948, for the three months ended March 31, 2022,
compared to $2,523,968, including capitalized expenditures of $2,289,725, for the
comparative prior year period, as expenditu res on the BK Gold Project Detailed
Engineering & Design work and Construction Readiness activities (including
deposits on long-lead items), exceeded the prior year period due to a ramp up in
activity. Additionally, Stakeholder relations costs exceeded those in Q1 2021, due
to payments under the Local Co -operation Agreement (“LCA”), executed in mid -
2021
• Corporate and administrative expenses totaled $445,446 for the three months
ended March 31, 2022, compared to $394,604 for the three months ended March
31, 2021, with the year on year variance primarily due to higher administrative
salaries in support of pre -development and financing work for the Bayan Khundii
Gold Project and increased regulatory fees driven by growth in the Company’s
market capitalization
Qualified Person
Peter Dalton, P.Geo. (Nova Scotia), Senior Geologist for Erdene, is the Qualified Person
as that term is defined in National Instrument 43-101 and has reviewed and approved the
technical information contained in this news release.
About Erdene
Erdene Resource Development Corp. is a Canada-based resource company focused on
the acquisition, exploration, and development of precious and base metals in
underexplored and highly prospective Mongolia. The Company has interests in three
mining lic enses and an exploration license in Southwest Mongolia, where exploration
success has led to the discovery and definition of the Khundii Gold District. Erdene
Resource Development Corp. is listed on the Toronto and the Mongolian stock exchanges.
Further in formation is available at www.erdene.com. Important information may be
disseminated exclusively via the website; investors should consult the site to access this
information.
TSX: ERD | MSE: ERDN
www.erdene.com 4 [email protected]
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward -looking
statements within the meaning of applicable securities laws. Forward-looking statements
may include estimates, plans, expectations, opinions, forecasts, projections, guidance, or
other statements that are not statements of fact. Although Erdene believes that the
expectations reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct. Erdene ca utions that
actual performance will be affected by a number of factors, most of which are beyond its
control, and that future events and results may vary substantially from what Erdene
currently foresees. Factors that could cause actual results to differ m aterially from those
in forward-looking statements include the ability to obtain required third party approvals,
market prices, exploitation, and exploration results, continued availability of capital and
financing and general economic, market or business conditions. The forward -looking
statements are expressly qualified in their entirety by this cautionary statement. The
information contained herein is stated as of the current date and is subject to change after
that date. The Company does not assume the o bligation to revise or update these
forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE
CONTENTS OF THIS RELEASE
Erdene Contact Information
Peter C. Akerley, President and CEO, or
Robert Jenkins, CFO
Phone: (902) 423-6419
Email: [email protected]
Twitter: https://twitter.com/ErdeneRes
Facebook: https://www.facebook.com/ErdeneResource
LinkedIn: https://www.linkedin.com/company/erdene-resource-development-corp-/