Interview with Peter Akerley, President & CEO of Erdene Resource Development Corp.

Our previous interview: https://www.cruxinvestor.com/posts/erdene-resource-development-erd-aims-for-150000oz-gold-production-2418

Recording date: 11th December 2023

Mongolian Gold Developer Constructing First Mine, Targeting 2025 Production

Erdene Resource Development is steadily building its inaugural gold mine in partnership with prominent Mongolian company Mongolian Mining Corporation (MMC) MMC. The Bayan Khundii project, located in southwest Mongolia, is currently 12-13% complete, with major construction slated to ramp up in Q2 2024. On track for first gold production in early 2025, Bayan Khundii carries low technical risk while offering robust profit margins even if gold prices retreat near-term.

Strategic partner MMC brings critical funding, development expertise, and political clout. Their $40M contribution provides half the required capex, with Erdene arranging senior debt for the balance. MMC’s mining affiliates allow accelerated development.

Bayan Khundii’s Phase 1 consists of an open-pit gold mine averaging 61Koz annual production over an 8-year mine life. Exceptional grades (4g/t Au) and low all-in sustaining costs under $900/oz gold provide protection against market volatility. Significant exploration success around Bayan Khundii and elsewhere in Erdene’s district signals longer-term growth potential as well.

Adjacent discoveries at Dark Horse, Dark Horse Extension and Altan Nar host high-grade, near-surface mineralization within trucking distance of the Bayan Khundii processing plant. These satellites could either extend Bayan Khundii’s mine life or warrant eventual stand-alone development depending on magnitude.

Beyond supporting Bayan Khundii’s development, partner MMC brings critical mass for Erdene’s regional exploration campaign. Beginning in 2025, annual free cash flows from Bayan Khundii (projected at $60M after-tax at $1800 gold prices) will fund this expanded drilling. Priority regional targets exhibit surface gold anomalism across Erdene’s 1,400 square kilometer land package.

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View Erdene Resource Development's company profile: https://www.cruxinvestor.com/companies/erdene-resource-development

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