Erdene Announces Year-End Results and Provides Bayan Khundii Project Update
TSX: ERD | MSE: ERDN
www.erdene.com 1 [email protected]
ERDENE ANNOUNCES YEAR-END RESULTS AND
PROVIDES BAYAN KHUNDII PROJECT UPDATE
Press Release
Halifax, Nova Scotia
2025.03.25
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, 2024, and to provide an update on progress at the Bayan Khundii Gold
Project, being developed with Mongolian Mining Corporation (“MMC”) . This release
should be read in conjunction with the Company’s 2024 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 period of
significant progress for Erdene with the close of our Strategic Alliance with 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. As of today, construction progress has exceeded 80%
with most facilities scheduled for completion in Q1 and early Q2 2025. Three key facilities
have been commissioned and process plant commissioning is expected to commence in
May 2025, with first gold production scheduled in Q3 2025.”
Mr. Akerley concluded, “Expansion drilling during 2024 returned the highest grades to
date adjacent to the planned Bayan Khundii open -pit, demonstrating strong growth
potential. Additionally, ore-control drilling in late 2024 returned very positive results,
confirming the high-grade nature of the Bayan Khundii deposit, and in some cases
expanding mineralization. These results will be incorporated into an updated Bayan
Khundii mine plan in the coming months.”
TSX: ERD | MSE: ERDN
www.erdene.com 2 [email protected]
2024 Highlights and Significant Subsequent Events:
Images – clockwise from top left: Bayan Khundii Construction Site, Process Plant, Accommodation Village,
and Crushing and Conveyor System, March 2025.
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
- Entered a power purchase agreement (“PPA”) for the construction of a 240 km
overhead transmission line with MCS International LLC (“MCSI”), one of
Mongolia’s leading private energy companies
• Achieved 66% construction progress by December 31, 2024
- Incurred US$83 million of expenditures to the end of Q4 2024
- EM management estimates capital expenditures may increase by ~ 15% from the
initial capital budget of US$100M due to inflation, the impact of weather and
logistical delays and scope changes ; however, no further equity funding is
expected from Erdene or MMC for BK
- Process plant, the critical path facility, was 67% complete at year end, with
concrete and structural works substantially completed and all major equipment in
place
TSX: ERD | MSE: ERDN
www.erdene.com 3 [email protected]
- Construction progress for non-process buildings was 60%, infrastructure facilities
were 80%, and power supply was 52%, largely consistent with schedule
- Commissioning of the integrated mineral waste facility was completed in Q4 2024
with the balance of the facilities planned progressively throughout Q1 and Q2 2025
- Construction expected to be largely complete in May 2025 to allow commissioning
of processing facilities in Q2 2025 and first gold production in Q3 2025
• Delivered on community development and local employment stakeholder programs
- Local Cooperation Agreement for 2024 implemented supporting local development
- Recruitment and training of Bayan Khundii mine workforce continued with eighth
cohort of local residents selected for equipment operator training at MMC’s UHG
mine, for a cumulative total of 164 people undertaking the training
- Company supported installation and improvement of three rural water wells to
increase water availability for residents
Khundii Minerals District Exploration
• Conducted 15,000-metre Bayan Khundii ore-control drill program
- Drilled 89 shallow diamond drill holes totaling 1,048 metres focused on near -
surface high-grade, 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
- Second phase of the program, in Q4 2024, consisted of 106 diamond core holes
totaling 1,168 metres and 812 reverse circulation holes for 12,273 metres for which
results were received subsequent to year end with highlights included below
- Results confirmed high-grade domains in the current block model and indicated
areas of expansion with highlight intersections of 101.0 g/t gold over 4 metres,
starting 7 metres downhole and 115.1 g/t gold over 4 metres from 11 metres (see
table below for greater than 20 gram*metre intersections)
• Completed 950 metre Bayan Khundii expansion program on the periphery of the
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)
• Conducted surface sampling program at the Greater Dark Horse area and at Zuun Mod
- Multiple samples from Greater Dark Horse returned high grade gold (up to 37.7 g/t
Au) and silver (over 100 g/t Ag), providing targets for follow-up drilling
- Discovered new gold prospect 4.5 km west of the Zuun Mod molybdenum-copper
deposit
• Added Kelly Cluer as Technical Advisor to assist exploration team
- Brings more than 30 years’ experience including over a decade in Mongolia where
he led the discovery and definition of two of the Country’s largest gold deposits
TSX: ERD | MSE: ERDN
www.erdene.com 4 [email protected]
Corporate
• Closed strategic alliance with MMC on January 23, 2024
- MMC invested US$40 million for a 50% equity interest in EM, the company holding
the BK Project
- Erdene retains a 50% equity interest in EM as well as a 5% NSR royalty on
production after the first 400,000 ounces of gold production and a 100% interest in
Zuun Mod
• Secured BK Project Finance from strategic partner MMC
- Up to US$80 million shareholder loan to EM, the entity co-owned by Erdene and
MMC
- Five-year bullet maturity, bearing interest at 13.8% per annum, payable in arrears
- Secured by Erdene’s interests in EM and preferential rights over Erdene’s
properties
• Obtained US$50 million facility for BK from Trade and Development Bank of Mongolia
- 24-month term and repayable in equal monthly payments during the final six
months of the loan
- Facility bears interest at 13.3% per annum and is secured by BK’s process plant
assets
• Recorded net loss of $8,245,886 for the year ended December 31, 2024, compared to
net income of $522,043 for the year ended December 31, 2023
- Exploration and evaluation expenses totaled $1,852,642 for the year ended
December 31, 2024, compared to $847,010 in 2023, as certain salaries, consultant
costs, and travel expenditures historically incurred by the associate EM were
incurred directly following the close of the Strategic Alliance
- Corporate and administrative expenses totaled $5,043,058 for the year ended
December 31, 2024, compared to $3,137,735 for the year ended December 31,
2023, with the year-on-year change primarily due to the write-off of previously
deferred project finance and other arrangement costs following termination of
project finance diligence due to the Bayan Khundii shareholder loan with MMC, as
well as the accrual of first gold bonuses for senior staff in the current year, and cost
of living salary increases
- Loss from investment in associate of $3,245,109 for the year ended December 31,
2024, compared to $2,278,370 in the prior year due to an increase in non -
capitalized interest expenditures 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
- Non-cash gain on dilution of $1,256,598 in the year ended December 31, 2024 due
to the close of the Strategic Alliance with MMC, compared to a gain on loss of
control of EM of $6,544,863 upon the signing of the Strategic Alliance with MMC
in January 2023
TSX: ERD | MSE: ERDN
www.erdene.com 5 [email protected]
Bayan Khundii Ore-Control Drilling
During Q4 2024, EM completed the second phase of the ore -control drill program,
designed to test near-surface gold mineralized zones, scheduled to be developed in the
first four months of mining, and generally within 15 metres of surface. The program
consisted of 106 diamond core holes totaling 1,168 metres and 812 reverse circulation
holes for 12,273 metres. Results confirmed consistency of mineralization in the previously
defined blocks and drilling in 10 areas intersected mineralization that has the potential to
extend ore blocks. A further 100+ holes are planned to verify these newly identified areas.
The attached map displays results from the ore-control drilling program and shows holes
that intersected greater than 0.30 g/t gold (~75% of holes) over one metre (projected
resource cut-off grade) within this shallow drilling program. Holes with significant high-
grade intersections, defined as exceeding 20 gram-metres (~12% of holes), are
highlighted in red. Details of the intersections are provided in the table below.
The output from the ore-control drilling will be incorporated into a Bayan Khundii mine
plan update over the coming months. The updated plan will also consider the impact of
higher gold prices as the current economic pit was defined using a US$1,850-ounce gold
price and a US$2,000 -ounce pit constraining factor. At current gold prices of
approximately US$3,000 per ounce, additional near-pit resources are likely to be
incorporated in the updated mine plan.
Ore-Control Drilling Highlights
Intervals exceeding 20 gram-metres (interval multiplied by average gold grade)
Hole ID *Easting *Northing From To **Interval g/t Gold
Core Holes
BKDH-80 483372 4861183 1.9 6 4.1 5.99
Incl 1.9 3 1.1 11.50
BKDH-81 483372 4861178 0.4 10 9.6 26.86
Incl 6 7 1 253.00
BKDH-148 483357 4861188 0 10 10 4.98
Incl 8 10 2 23.40
BKDH-163 483352 4861257 4.85 8 3.15 9.52
Incl 4.85 6 1.15 24.40
BKDH-165 483352 4861238 0.13 4 3.87 6.70
Incl 0.13 1 0.87 14.50
BKDH-169 483352 4861208 0.8 10 9.2 2.63
Incl 0.8 2 1.2 12.40
BKDH-170 483352 4861203 0.4 10 9.6 2.96
Incl 8 9 1 14.50
BKDH-192 483347 4861248 1.7 5 3.3 6.14
Incl 3 4 1 17.00
BKDH-195 483347 4861233 0.3 6 5.7 3.82
BKDH-715 483187 4861033 9 14 5 4.16
Incl 11 12 1 17.30
TSX: ERD | MSE: ERDN
www.erdene.com 6 [email protected]
Hole ID *Easting *Northing From To **Interval g/t Gold
RC Holes
BKGC-3 483422 4861087 0 4 4 6.34
Incl 1 2 1 22.20
BKGC-47 483382 4861113 1 11 10 2.39
BKGC-50 483382 4861088 0 4 4 25.08
Incl 3 4 1 97.80
BKGC-55 483382 4861063 9 13 4 6.59
Incl 10 11 1 21.80
BKGC-58 483382 4861047 5 12 7 59.49
Incl 7 11 4 100.99
Incl 7 8 1 336.00
BKGC-61 483377 4861123 0 10 10 3.70
Incl 2 3 1 15.00
BKGC-73 483377 4861048 1 6 5 4.24
Incl 2 3 1 16.30
BKGC-85 483372 4861122 0 2 2 10.48
Incl 1 2 1 19.70
BKGC-86 483372 4861118 4 12 8 3.06
Incl 4 5 1 17.10
BKGC-109 483367 4861118 1 11 10 10.37
Incl 2 3 1 77.00
BKGC-153 483357 4861118 0 6 6 8.14
Incl 3 4 1 42.40
BKGC-154 483357 4861113 4 12 8 3.81
Incl 6 8 2 10.90
BKGC-178 483352 4861113 4 13 9 9.22
Incl 4 6 2 37.05
BKGC-235 483342 4861107 8 14 6 7.03
Incl 10 11 1 35.40
BKGC-274 483332 4861078 6 12 6 7.22
Incl 10 11 1 39.00
BKGC-286 483327 4861107 11 15 4 115.14
Incl 11 14 3 151.47
Incl 11 12 1 390.00
BKGC-287 483327 4861102 14 15 1 99.40
BKGC-294 483322 4861113 8 15 7 28.36
Incl 8 9 1 183.00
BKGC-297 483322 4861098 0 3 3 7.00
Incl 0 1 1 10.30
BKGC-304 483322 4861018 0 16 16 5.14
TSX: ERD | MSE: ERDN
www.erdene.com 7 [email protected]
Hole ID *Easting *Northing From To **Interval g/t Gold
Incl 1 2 1 14.40
Incl 7 8 1 19.20
Incl 9 10 1 19.00
BKGC-310 483317 4861123 3 7 4 25.06
Incl 3 4 1 98.20
BKGC-311 483317 4861118 4 12 8 4.98
Incl 7 9 2 13.60
BKGC-318 483318 4861028 12 15 3 16.09
Incl 13 14 1 43.30
BKGC-319 483317 4861022 0 15 15 1.90
Incl 8 9 1 11.30
BKGC-321 483312 4861128 1 14 13 3.45
Incl 6 8 2 15.70
BKGC-323 483312 4861118 5 14 9 5.02
Incl 6 7 1 16.80
BKGC-334 483311 4861022 0 10 10 2.22
BKGC-429 483282 4861018 0 4 4 8.08
Incl 2 3 1 22.10
BKGC-430 483282 4861012 0 8 8 3.38
Incl 3 4 1 10.40
BKGC-432 483282 4861002 3 11 8 3.97
Incl 8 9 1 16.90
BKGC-439 483281 4860948 0 9 9 2.74
BKGC-440 483282 4860942 0 19 19 4.02
Incl 13 15 2 20.30
BKGC-441 483281 4860937 4 11 7 3.63
Incl 8 9 1 21.10
BKGC-456 483277 4860952 0 14 14 4.05
Incl 0 3 3 11.20
Incl 7 8 1 10.60
BKGC-464 483272 4861058 1 13 12 2.00
BKGC-498 483267 4861013 14 24 10 2.34
BKGC-502 483268 4860979 12 17 5 13.69
Incl 15 16 1 64.40
BKGC-505 483267 4860963 0 26 26 3.45
Incl 11 12 1 52.90
BKGC-506 483266 4860957 0 24 24 3.70
Incl 13 15 2 15.05
BKGC-507 483267 4860953 0 22 22 2.64
BKGC-509 483267 4860937 1 13 12 4.26
TSX: ERD | MSE: ERDN
www.erdene.com 8 [email protected]
Hole ID *Easting *Northing From To **Interval g/t Gold
Incl 3 4 1 20.10
Incl 7 8 1 16.60
BKGC-529 483262 4860988 0 16 16 1.90
BKGC-532 483262 4860973 0 22 22 2.20
Incl 2 3 1 11.10
BKGC-534 483262 4860963 0 21 21 1.75
BKGC-535 483262 4860957 0 17 17 2.10
BKGC-536 483262 4860952 0 22 22 2.23
BKGC-537 483262 4860948 0 20 20 27.81
Incl 7 9 2 173.00
Incl 10 12 2 91.15
Incl 11 12 1 171.00
BKGC-538 483262 4860937 0 11 11 2.64
Incl 6 7 1 16.70
BKGC-548 483256 4860982 0 18 18 2.81
Incl 9 10 1 30.30
BKGC-553 483257 4860957 0 12 12 2.20
BKGC-555 483257 4860937 0 16 16 1.46
BKGC-559-V 483252 4861047 4 8 4 5.28
Incl 5 6 1 11.00
BKGC-569 483252 4860983 0 5 5 11.42
Incl 1 2 1 46.10
Incl 4 5 1 10.10
BKGC-575 483252 4860948 0 19 19 15.65
Incl 1 3 2 15.20
Incl 4 8 4 56.05
Incl 9 10 1 10.50
BKGC-576 483252 4860943 0 18 18 1.38
BKGC-583 483247 4861027 0 7 7 4.13
Incl 2 3 1 17.60
BKGC-586 483247 4860953 0 16 16 2.22
BKGC-587 483247 4860948 0 17 17 1.74
BKGC-588 483247 4860943 1 16 15 3.78
Incl 4 5 1 30.90
BKGC-596 483243 4861043 1 13 12 2.24
BKGC-600 483242 4861023 0 7 7 3.19
Incl 3 4 1 12.00
BKGC-607 483242 4860957 0 18 18 2.55
BKGC-608 483242 4860952 1 13 12 2.92
Incl 11 12 1 18.60