Erdene Resource Development Corp. has released results from shallow drilling at the Bayan Khundii orebody and provided an update on the Bayan Khundii Gold Project under construction. The project is being developed by Erdene Mongol LLC, a joint venture between Erdene and Mongolian Mining Corporation. Initial results from the drilling program confirmed the high-grade nature of the deposit, consistent with the reserve model for surface zones.
Erdene’s President and CEO, Peter Akerley, highlighted that a 13,500-metre reverse circulation drilling program will begin soon, aiming to finalize the mine plan before the start of mining in Q1 2025. Exploration drilling around the Bayan Khundii pit is also completed, with results expected in the coming weeks to update the mine plan in conjunction with current gold prices.
During Q3 2024, a total of 89 shallow diamond drill holes were completed in the high-grade zones within 15 meters of the surface. Additionally, 10 deeper holes were drilled for future mine planning. In Q4 2024, a grade control drilling program consisting of 13,500 meters will take place to refine mining plans further. The mining of Bayan Khundii is expected to start in late Q1 2025, with the mine to be operated using a leased fleet of equipment and employing nearly 90 local operators.
Mining will focus on the Bayan Khundii pit and a satellite pit at the Dark Horse Mane deposit starting in year 3. The operation aims to produce 650,000 tonnes per annum with a 4 g/t gold grade, reaching an annual gold production of 86,900 ounces during peak years.
Construction of an Integrated Waste Facility has begun, with tailings and waste rock to be managed in an environmentally controlled manner. Gold production is expected to ramp up over the initial 90 days of operation in 2025.
