Erdene Announces Q3 2024 Results and Provides Bayan Khundii GOLD Project Update
TSX: ERD | MSE: ERDN
www.erdene.com 1 [email protected]
ERDENE ANNOUNCES Q3 2024 RESULTS AND
PROVIDES BAYAN KHUNDII GOLD PROJECT UPDATE
Press Release
Halifax, Nova Scotia
2025.11.14
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 September 30, 2024, and to provide an update on progress at the Bayan Khundii
Gold Project (“BK” or “Project” ), being developed with Mongolian Mining Corporation
(“MMC”). This release should be read in conjunction with the Company’s Q3-2024
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 202 4 was
another productive period for Erdene as we made significant progress on the construction
of the Bayan Khundii Gold Mine and saw exceptional results from expansion drilling
peripheral to the planned open pit.”
He cont inued, “ At the end of September, the Bayan Khundii process plant , the critical
path facility, was approximately 55% complete. All major mechanical equipment is on site,
the SAG and ball mills have been installed, and construction of non-process infrastructure
is proceeding well , with major progress on the integrated mineral waste facility , 400
person accommodation complex, and 110 kV overhead transmission line during the past
quarter bringing the overall project to 45% complete.”
Mr. Akerley added, “We expect the process plant and critical non-process infrastructure
buildings to be closed over the coming months, allowing for mechanical and electrical
works completion in Q1 and commissioning beginning in Q 2 2025, as we work toward
first gold in mid -2025 and commercial production in Q3 2025 . During the fourth quarter,
EM management will complete a detailed schedule review and assessment of spending
to complete construction . While we anticipate an increase in capex due to weather and
logistical delays and modest scope changes, these impacts are forecast to be
manageable with available funding.”
Mr. Akerley concluded, “Expansion drilling in Q3 adjacent to the planned Bayan Khundii
open-pit returned the highest grades to date in the area , demonstrating strong growth
potential. Additionally, ore control drilling during the past quarter confirmed the high-grade
nature of the Bayan Khundii deposit, consistent with the reserve model in near surface
zones. These results will be incorporated into an updated Bayan Khundii mine plan in the
coming months.”
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Q3-2024 Highlights and Significant Subsequent Events:
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Images: Bayan Khundii Construction Site – Q3 2024
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Bayan Khundii Gold Project
• Reached approximately 45% construction progress at Bayan Khundii at September 30,
2024
- Approximately US$7 0 million of Project expenditures incurred to the end of Q3
2024 – potential cost increases due to logistical and weather delays and minor
scope changes are expected to be within available funding
- Process plant, the critical path facility, was ~55% complete at quarter end, with all
bulk concrete pours and mechanical equipment installation of the SAG and ball
mills complete
- Construction of non -process infrastructure, including camp, 110 kV overhead
transmission line, warehouse, workshop , administration building and utilities
proceeding well
- Construction expected to be largely complete in Q1 2025 with commissioning in
Q2 and first gold production in mid-2025 followed by commercial production in Q3
- Approximately 650 personnel on-site at quarter end achieving ~2,000,000
construction hours without a lost-time or environmental incident
• Advanced community development and local employment stakeholder programs
- Local Cooperation Agreement for 2024 implemented supporting local development
programs
- Recruitment and training of Bayan Khundii mine workforce continued with seventh
cohort of local residents selected for equipment operator training at MMC’s UHG
mine, bringing total number of trainees to 140 people to date
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- Company supported installation and improvement of three rural water wells to
increase water availability for residents
Khundii Minerals District Exploration
• Conducted 1,500 metre Bayan Khundii ore-control drill program
- Drilled 89 shallow holes totaling 1,048 metres focused on high -grade domains,
within 15 metres of surface, scheduled to be developed in the first 3 -4 months of
mining and a further 10 holes totaling 456 metres to assist with future mine
planning
- Results confirmed the high-grade domains in the current block model with highlight
intersection of 6.61 g/t Au over 12 metres, starting at surface
• Completed 950 metre expansion program on the periphery of the Bayan Khundii
planned open pit
- Drilling intersected gold mineralization in all holes, demonstrating the potential for
resource growth and pit extension
- Results included the highest-grade drilling results to date in Striker West, adjacent
to the Bayan Khundii open-pit, including 7.3 g/t gold over 42 metres, with multiple
high-grade metre intersections of 15 to 79 g/t gold (BKD-377)
Corporate
• Recorded net loss of $1,687,580 for the three months ended September 30, 2024,
compared to a net loss of $1,200,099 for three months ended September 30, 2023
- Exploration and evaluation expenses totaled $215,903 for the three months ended
September 30, 2024, compared to $219,670 for the same quarter in 2023, as
increased activity compared to the prior year and an increase in non -capitalized
Mongolian office costs following the close of the Strategic Alliance was more than
offset by a reduction in stock based compensation due to the timing of annual
performance stock option grants
- Corporate and administrative expenses totaled $582,089 for the three months
ended September 30, 2024, compared to $600,595 for three months ended
September 30, 2023, with the decrease from the prior year comparative quarter
primarily due to the timing of a nnual staff performance DSU grants, which were
incurred in the Q2 2024 compared to Q3 2023, partially offset by increased
marketing spend related to an investor site visit
- Loss from investment in associate of $918,649 for the three months ended
September 30, 2024, compared to $445,493 for the three months ended
September 30, 2023, with the period over period change primarily due to an
increase in non -capitalized interest exp enditures by EM following the February
2024 financing partially offset by Erdene’s change in ownership following the close
of the Strategic Alliance in Q1 2024
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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 licenses a nd 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 informati on is available at www.erdene.com. Important information may be
disseminated exclusively via the website; investors should consult the site to access this
information.
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-/