Erdene Reports Strong Drill Results and Provides MINE Development Update FOR the Bayan Khundii GOLD Project
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ERDENE REPORTS STRONG DRILL RESULTS AND PROVIDES MINE
DEVELOPMENT UPDATE FOR THE BAYAN KHUNDII GOLD PROJECT
Press Release
Halifax, Nova Scotia
2024.09.25
Erdene Resource Development Corp. (TSX:ERD | MSE:ERDN) ("Erdene" or the
"Company") is pleased to provide results from shallow drilling within the initial mining
areas of the Bayan Khundii orebody and to provide an update on mine development for
the Bayan Khundii Gold Project (“BK Project”) currently under construction. The BK
Project is being developed by Erdene Mongol LLC (“EM”), a company jointly owned by
Erdene and its partner, Mongolian Mining Corporation (“MMC”).
Peter Akerley, Erdene’s President and CEO stated, “Results from the first phase of the
Bayan Khundii ore control drilling program confirm the high-grade nature of the deposit,
consistent with the reserve model in near surface zones. A 13,500 metre reverse
circulation (“RC”) drill program will begin in the coming weeks to collect data to finalize
the mine plan in advance of the commencement of mining in Q1 2025.”
Mr. Akerley continued, “Additionally, exploration drilling on the periphery of the Bayan
Khundii economic pit was recently completed to test expansion targets. Those results,
expected within the next couple of weeks, will be analyzed in conjunction with current
gold prices, to update the mine plan as we work towards first gold from Bayan Khundii in
mid-2025.”
Drill Results
During Q3 2024, EM completed an ore control drill program consisting of 89 shallow
diamond drill holes totaling 1,048 metres. This program focused on the high-grade
domains, within 15 metres of surface, scheduled to be developed in the first 3-4 months
of mining. Additionally, 10 holes, totaling 456 metres, were drilled to greater depth to
assist with future mine planning. The program utilized diamond core to gather detail on
the orientation and character of these ore zones. Results confirmed the high-grade
domains in the current block model with highlights displayed in the following table. Full
results are included as an appendix to this release.
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Drilling Highlights – Diamond Drilling Program – Q3 2024
Hole ID Hole Depth From To Interval g/t Au
Midfield SE
30370 12 4 10 6 9.52
Incl 4 5 1 50.70
30811 12 2 6 4 4.70
Incl 3 4 1 12.90
31034 17 7 10 3 9.42
Incl 8 9 1 20.10
31253 10 0.85 7 6.15 7.63
Incl 4 5 1 38.40
31254 15 4 8 4 21.70
Incl 5 7 2 41.55
31474 10 1 6 5 21.87
Incl 3 5 2 49.35
31475 16 5 8 3 19.16
Incl 5 6 1 56.70
31476 18 8 11 3 33.29
Incl 9 10 1 99.00
31695 11 3 6 3 70.61
Incl 3 5 2 105.85
Incl 4 5 1 198.00
32580 20 10 14 4 3.71
Incl 11 12 1 11.50
And 19 20 1 1.06
Striker
26384 12 6 9 3 2.18
26385 13 9 13 4 9.26
Incl 11 12 1 30.80
26603 16 13 16 3 4.83
Incl 14 15 1 14.10
26604 16 6 13 7 5.56
Incl 9 10 1 11.80
Incl 11 12 1 12.30
27494 48 33 48 15 2.75
Incl 34 36 2 16.45
27717 45 17 43 26 2.03
Incl 24 41 17 2.91
Incl 24 25 1 11.40
South Striker
22168 20 2 14 12 2.96
Incl 11 12 1 18.40
22389 18 0 7 7 4.13
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Hole ID Hole Depth From To Interval g/t Au
Incl 5 6 1 16.50
23044 5 0 5 5 4.30
Incl 0 1 1 15.50
23045 14 0 9 9 8.32
Incl 0 6 6 12.20
Incl 0 3 3 21.70
23046 15 0 12 12 6.61
Incl 1 7 6 11.21
Incl 3 4 1 31.00
Incl 5 6 1 11.60
23047 11 0 11 11 4.46
Incl 4 8 4 10.72
Incl 4 5 1 16.70
Incl 7 8 1 12.30
23266 14 1 14 13 3.68
Incl 8 10 2 14.90
23267 12 0 12 12 4.66
Incl 9 10 1 20.40
23927 6 0.3 6 5.7 14.82
Incl 3 4 1 68.20
Note: Reported intervals are apparent thicknesses, i.e., downhole widths. The current Bayan
Khundii drill holes (reported in this release) are all vertical. True widths are estimated to be
between 60% and 90% of the downhole width. This Highlights table includes all holes with a
minimum of 1m with >10 g/t gold. See Appendix of full results.
Grade Control Reverse Circulation (RC) Program Q4 2024
A 13,500 metre grade control RC drilling program, consisting of approximately 800 holes,
will be completed in Q4 2024. Drill holes at 5 metre spacing will be completed over areas
of high-grade wireframes (defined as >2 g/t Au), 10 metre centres for areas of ore (>0.7
g/t Au) outside the high-grade wireframes and 20 metres spaced holes in select areas of
lower-grade mineralization, that have the potential to host higher grades and/or transition
to ore at current gold prices. Grade control holes will be approximately 20 metres deep,
equal to four 5-metres benches. The grade control program has been developed in
accordance with typical methodologies for the style of deposit and scale of mining
equipment selected for the BK Project.
The final laboratory results for the grade control program are expected by year-end
allowing for an internal ore control model and updated mine schedule to be prepared prior
to equipment arrival on site in mid Q1 2025.
Mining
Mining of the Bayan Khundii deposit is scheduled to begin in late Q1 2025. EM will operate
the mine using a leased fleet. Mine technical services personnel and equipment operators
have been hired and trained for the mine operation, including nearly 90 full -time
equipment operators who are residents of BK’s host province, Bayankhongor, who have
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been trained and are currently working at MMC’s UHG mine. An equipment supply and
maintenance contract has been awarded for an initial 36-month term and equipment will
be mobilized to site in mid Q1 2025.
Mining will be concentrated at the Bayan Khundii pit to a maximum depth of approximately
150 metres, with a satellite pit developed at the Dark Horse Mane deposit, 2 kilometres
north, in year 3. Following a three-month pre-production and ramp-up period commencing
in late Q1 2025, the mining rate will increase to approximately 1 million tonnes ex-pit
material movement per month to maximize high-grade extraction, including from the Dark
Horse Mane deposit, then continuing with the Bayan Khundii development through the
end of year 6 when expansion and adjacent prospects are planned to be advanced to
allow for the continuation of processing ore at Bayan Khundii.
T o optimize the mine operation, the fleet has been adjusted from that proposed in the
Feasibility Study in 2023, to increase reliability and reduce risk, including the addition of
more equipment during the pre-production period. The primary fleet for pre-production
and initial mining in 2025 will consist of the following equipment:
Type Make Model Quantity
Hydraulic Excavator Hyundai R1250-9 (118 tonne) 2
Hydraulic Excavator Hyundai HX520L (54 tonne) 1
Haul Truck Tonly TL875K (60 tonne) 14
Bulldozer XCMG SD9N (13.5 m3 blade cap.) 4
Wheel Loader XCMG LW900KN (5.0 m3) 1
Additional support fleet includes autograders, fuel truck, service vehicles and compactors.
Ore production has been scheduled to achieve a production target of 650,000 tonnes per
annum (1,950 tonnes per day) with an average 4 g/t gold head grade over the life of mine.
Gold production is planned to ramp up over the initial 90 days of production to reach an
average annual gold production of 86,900 ounces during years 2 through 5 – at which
time the Company aims to have proven additional reserves to extend mine life.
Integrated Waste Facility
Mine waste rock will be hauled and deposited along with process tailings into an
integrated waste facility (IWF) within one kilometre of the BK pit. Construction of the initial
IWF commenced in Q3 2024. Treated, dewatered dry “cake” tailings (target moisture
content of less than 15%) will be hauled and deposited in cells within the mine waste rock,
underlain by a synthetic geomembrane liner with engineered leakage detection and
catchments.
Qualified Person and Sample Protocol
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. All samples have been assayed at
SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS
Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared
standards and blanks. All samples undergo standard fire assay analysis for gold and ICP-
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OES (Inductively Coupled Plasma Optical Emission Spectroscopy) analysis for 33
additional elements.
Erdene’s drill core sampling protocol consisted of collection of samples over 1 or 2 metre
intervals (depending on the lithology and style of mineralization) over the entire length of
the drill hole, excluding minor post-mineral lithologies and un-mineralized granitoids.
Sample intervals were based on meterage, not geological controls, or mineralization. All
drill core was cut in half with a diamond saw, with half of the core placed in sample bags
and the remaining half securely retained in core boxes at Er dene’s Bayan Khundii
exploration camp. All samples were organized into batches of 60 including a commercially
prepared standard, blank, a field duplicate, consisting of two quarter-core intervals, and
a laboratory duplicate. Sample batches were periodically shipped directly to SGS in
Ulaanbaatar via Erdene’s logistical contractor, Monrud Co. Ltd.
Reported intervals are apparent thicknesses, i.e., downhole widths. The current Bayan
Khundii drill holes (reported in this release) are all vertical. True widths are estimated to
be between 60% and 90% of the downhole width. Reported grades for intervals are
weighted averages based on length of sampling intervals. No top cut has been applied;
however, all contiguous intervals greater than 10 g/t gold and 100 g/t gold are reported
individually for clarity.
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 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 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, 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
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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-/
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APPENDIX OF FULL DRILLING RESULTS
Hole ID Hole Depth From To Interval g/t Au
Midfield SE
28592 48 37 47 10 1.57
Incl 37 42 5 2.00
28594 48 38 46 8 1.54
Incl 39 43 4 2.62
28817 47 36 45 9 1.20
28819 47 5 8 3 0.70
And 12 15 3 0.50
And 41 47 6 0.57
28823 45 2 5 3 0.50
And 38 42 4 0.72
29263 46 21 24 3 0.51
And 33 45 12 2.04
29265 47 5 8 3 0.56
And 27 37 10 0.79
29707 5 0 3 3 0.82
29927 10 5 8 3 0.75
29928 10 0 5 5 2.15
30147 12 1 7 6 2.31
30148 12 0 3 3 2.20
30149 10 2 5 3 1.72
30369 12 3 6 3 3.27
And 11 12 1 3.86
30370 12 4 10 6 9.52
Incl 4 5 1 50.70
30371 10 7 10 3 1.12
30811 12 2 6 4 4.70
Incl 3 4 1 12.90
30812 15 5 12 7 1.79
30813 15 9 15 6 2.46
31032 12 2 6 4 2.51
31033 15 4 8 4 3.68
And 10 13 3 2.51
31034 17 7 10 3 9.42
Incl 8 9 1 20.10
31253 10 0.85 7 6.15 7.63
Incl 4 5 1 38.40
31254 15 4 8 4 21.70
Incl 5 7 2 41.55
31255 15 7 11 4 3.91
31473 11 1 6 5 0.93
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Hole ID Hole Depth From To Interval g/t Au
31474 10 1 6 5 21.87
Incl 3 5 2 49.35
31475 16 5 8 3 19.16
Incl 5 6 1 56.70
31476 18 8 11 3 33.29
Incl 9 10 1 99.00
31694 11 1 4 3 1.11
31695 11 3 6 3 70.61
Incl 3 5 2 105.85
Incl 4 5 1 198.00
32357 11 3 6 3 1.54
32358 15 7 12 5 0.63
32577 11 3 7 4 3.38
32578 11 4.6 9 4.4 3.00
32579 11 6.7 10 3.3 2.68
32580 20 10 14 4 3.71
Incl 11 12 1 11.50
And 19 20 1 1.06
Striker
24630 16 2 5 3 0.49
And 8 12 4 1.12
24631 11 3 10 7 0.86
24849 28 14 28 14 0.77
24850 17 11 17 6 0.96
24851 12 7 11 4 2.67
26384 12 6 9 3 2.18
26385 13 9 13 4 9.26
Incl 11 12 1 30.80
26386 9 5 8 3 1.10
26603 16 13 16 3 4.83
Incl 14 15 1 14.10
26604 16 6 13 7 5.56
Incl 9 10 1 11.80
Incl 11 12 1 12.30
26605 16 0 3 3 2.54
And 8 11 3 1.43
26606 7 3 7 4 1.51
26607 16 5 8 3 2.08
26825 12 5 10 5 3.28
27494 48 33 48 15 2.75
Incl 34 36 2 16.45
27717 45 17 43 26 2.03
Incl 24 41 17 2.91