Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) announced that full construction of the high-grade, open-pit Bayan Khundii gold project in Mongolia has commenced.
Additionally, the company said it has closed an investment by the Mongolian Mining Corporation (MCC) as part of its Strategic Alliance Agreement to develop the Khundii Minerals District.
The agreement was formally closed on January 23, 2024, when MCC was issued shares representing 50% ownership in Erdene’s Mongolian subsidiary Erdene Mongol.
“MMC is the ideal partner to develop the Khundii Minerals District with its experience in large-scale mining, expertise in construction, power supply, transportation and logistics, and national and international relationships,” Erdene CEO Peter Akerley said in a statement.
“Together, we will unlock new opportunities for the Mongolian mining sector, increase the industry’s contribution to the national economy and create long-term value for Erdene shareholders.”
The company highlighted that the Bayan Khundii project has proven and probable resources of 513,000 ounces of gold at an average head grade of 4 grams per ton, scheduled to produce an average of 87,000 ounces of gold during years two through five of the seven-year mine life.
“The Bayan Khundii gold mine is one of the highest grade, open pit gold mines under development globally and will be Mongolia’s largest gold primary producer when it reaches full production,” Akerley commented.
Erdene Resource Development is a Canada-based resource company focused on the acquisition, exploration and development of precious and base metals in underexplored and highly prospective Mongolia.