Erdene Delivers Bayan Khundii GOLD Project Feasibility Study
TSX: ERD | MSE: ERDN
www.erdene.com [email protected]
ERDENE DELIVERS BAYAN KHUNDII GOLD
PROJECT FEASIBILITY STUDY
Press Release
Halifax, Nova Scotia
2019.09.02
Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to
announce the filing on SEDAR of the independent Feasibility Study (“Feasibility Study” or “FS”) Technical
Report (the “Report”) for its 100%-owned, high-grade, open-pit Bayan Khundii Gold Project (“Bayan Khundii”
or “BK”) in southwest Mongolia. The Report, entitled ‘Bayan Khundii Gold Project Feasibility Study, NI 43-
101 Technical Report’, dated August 31, 2020, with an effective date of July 20, 2020, was prepared in
accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101’) by a
consortium of International and Mongolian firms, coordinated by Roma Oil and Mining Associates Limited
(“Roma”). The Report is available under the Company’s profile at www.sedar.com and on the Company’s
website at www.erdene.com.
Quotes from the Company:
"The Bayan Khundii feasibility study results confirm the robust returns of this project in its base case, and
the significant upside from ongoing district-wide exploration and rising gold prices,” said Peter Akerley,
Erdene’s President and CEO. “As a low-capex, low-opex project within an emerging gold district, Bayan
Khundii offers investors and stakeholders strong leverage to gold as we seek to grow the resource base
and move towards the goal of first production in early 2022.”
“An 18,000 metre exploration program is underway, currently focused on upside in the Bayan Khundii area
and initial drilling of the recently discovered Dark Horse prospect,” continued Mr. Akerley. “This program
has the potential to add to Bayan Khundii reserves and to expand resources across the broader district.”
“On the development side, we have commenced the construction readiness, detailed design work and
permitting processes required to move rapidly to construction,” concluded Mr. Akerley. “With the proceeds
of the recently closed C$20 million private placement, led by a strategic investment from Eric Sprott, and
the engagement of HCF International Advisers Limited ("HCF"), with a mandate to secure project debt
financing, we have visibility to the required funding.”
TSX: ERD | MSE: ERDN
www.erdene.com [email protected]
NI 43-101 Feasibility Study Highlights (US$1,400/oz Gold Price, unless noted)
• Base Case after-tax Net Present Value of US$100 million (NPV5%) and 42% Internal Rate of
Return (IRR), increasing to US$274 million and 93% IRR, respectively, at a gold price
of US$2,000/oz
• Life of Mine Earnings Before Interest, Taxes and Depreciation of US$257 million, increasing to
US$472M at a US$2,000/oz gold price
• Total recovered gold over the initial phase of the Khundii Gold District development
of 381,700 ounces
• All-in sustaining cost (“AISC”) of US$733/ounce of gold recovered and upfront capital costs
of US$59 million
• BK Measured and Indicated Resources of 521,000 ounces gold at an average grade of 3.16 g/t
gold and 103,000 ounces of Inferred resources at 3.68 g/t gold
• BK Proven and Probable Reserves of 409,000 ounces gold at an average grade of 3.71 g/t gold
• Average annual gold production of 63,500 ounces, including 77,600 ounces in Year 2
• Eight-year project, comprising one-year pre-production, six-year operating life and one-
year mine closure
• Payback period of less than 2 years
• 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$103 million
and approximately 400 new direct jobs in Bayankhongor Province
Further details on the Feasibility Study can be found in the Company’s press release, dated July 20, 2020
and the full Report is accessible on the Company’s website.
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. Erdene’s deposits are located in southwestern Mongolia’s Edren Terrane, within the Central
Asian Orogenic Belt, host to some of the world’s largest gold and copper-gold deposits. The Company has
been the leader in exploration in the region over the past decade and is responsible for the discovery of
the Khundii Gold District with interests in three mining licenses and two exploration licenses hosting
multiple high-grade gold and gold/base metal prospects, two of which are being considered for
development: the 100%-owned Bayan Khundii and Altan Nar gold deposits.
Erdene Resource Development Corp. is listed on the Toronto and the Mongolian stock exchanges. Further
information 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,
TSX: ERD | MSE: ERDN
www.erdene.com [email protected]
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
cautions 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 materially 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 obligation 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-/
YouTube: https://www.youtube.com/channel/UCILs5s9j3SLmya9vo2-KXoA