Erdene Announces First Quarter 2022 Results and Supplies Gold to Khundii
HALIFAX, Nova Scotia, May 12, 2022 (GLOBE NEWSWIRE) — Erdene Resource Development Corp. (TSX: ERD; MSE: ERDN) (“Erdene” or the “Company”) is pleased to report operating and financial results for the quarter ended March 31, 2022 and to provide an update on its Khundii Gold District, including its Bayan Khundii Gold Project (“Bayan Khundii” or “BK”) . This press release should be read in conjunction with the Company’s Q1-2022 financial statements and MD&A, available on the Company’s website and on SEDAR.
“During the first quarter of 2022, we made further progress towards our goals of expanding the Khundii Gold District, while advancing the Bayan Khundii Gold Project toward development,” said Peter Akerley, President and Chief Executive Officer. from the direction of Erdene. “We recently launched the first phase of our 2022 drill program, which will follow our 2021 discoveries at the Dark Horse Mane and Ulaan Southeast prospects. These discoveries support Erdene’s thesis that our Khundii District trend has the potential to host a multi-million ounce gold deposit, which could significantly increase gold production from the Bayan Khundii Gold Project.
“We have also made solid progress in advancing Bayan Khundii towards a construction decision, despite the continued impact of COVID-19,” Mr. Akerley continued. “Engineering and design work is largely complete and procurement is well advanced ahead of the construction decision. We have also begun conceptual design work to determine the potential impact of increased production before full construction begins. »
Q1-2022 Highlights and Significant Subsequent Events:
Bayan Khundii Gold Project – 100% Erdene
- Progress of construction readiness activities for the Bayan Khundii Gold Project:
- First works completed, including camp expansion, installation of communications infrastructure and implementation of project control software
- Repricing and tendering for all major mechanical and construction works is well advanced, with completion expected in Q2 2022
- Preferred vendors selected for engineering, procurement and construction management (“EPCM”) and non-process related infrastructure including camp, warehouse and workshop
- Key personnel integrated and project execution plans and manuals prepared prior to a construction decision
- Commencement of confirmation studies for mine water supply, with results expected in Q2 2022
- Obtaining key permits and advanced regulatory approvals required for mine development:
- Regulatory review of detailed plans well advanced, with nine facilities fully approved, including those planned during site establishment and initial construction – construction permits received for eight of these facilities in February 2022
- Process plant regulatory review underway with approvals expected in Q3 2022
- Continuation of local community programs prior to full construction:
- Undertook several community programs to support public health and basic education in the sub-province, as part of the local cooperation agreement
- Increase in employment in anticipation of the advance decision of the works expected in the second quarter of 2022, with nearly 30 local residents recruited
- Intensified vegetation program on site in a 2 ha area for future reclamation and environmental protection
- Launch of the first phase of the 2022 exploration program, targeting 10,000 meters of diamond drilling and 3,000 meters of rotary air jet (RAB) drilling
- Focused on expanding high-grade gold mineralization discovered in 2021 at the Ulaan and Dark Horse discoveries, confirming the continuity of the Altan Nar gold project and testing high-grade gold oxide targets near the surface throughout the district
- The first results of the program should be announced at the end of May 2022
- Advanced Due Diligence for Bayan Khundii Project Financing with EDC and Mongolian Financiers
- EDC mandate letter contemplates up to US$55 million senior secured credit facility
- EDC term sheet agreed and details and drafting underway ahead of financial close expected mid-2022
- Due diligence continues in parallel with Mongolian financial institutions on subordinated debt
- Recorded a net loss of $1,231,156 for the quarter ended March 31, 2022, compared to a net loss of $617,084 for the quarter ended March 31, 2021
- Exploration and evaluation expenditures totaled $2,904,572, including capitalized expenditures of $2,122,948, for the three months ended March 31, 2022, compared to $2,523,968, including capitalized expenditures of 2 $289,725, for the comparative period of the prior year, as expenditure for detailed engineering and Design work and construction preparation activities (including deposits on long lead items) exceeded the prior year period due to a surge in activity. Additionally, stakeholder relations costs exceeded those of the first quarter of 2021, due to payments under the Local Cooperation Agreement (“LCA”), signed in mid-2021
- Business and administrative expenses totaled $445,446 for the three months ended March 31, 2022, compared to $394,604 for the three months ended March 31, 2021, with the year-over-year variation primarily due to higher administrative salaries in support of pre-development and financing work for the Bayan Khundii Gold Project and increased regulatory costs due to growth in the company’s market capitalization
Peter Dalton, geo. (Nova Scotia), Principal Geologist for Erdene, is the Qualified Person as defined in NI 43-101 and has reviewed and approved the technical information contained in this news release.
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 holds interests in three mining licenses and one exploration license in southwestern Mongolia, where exploration success led to the discovery and definition of the Khundii gold district. Erdene Resource Development Corp. is listed on the Toronto and Mongolian stock exchanges. Further information is available at www.erdene.com. Important information may be disseminated exclusively via the website; investors are invited to consult the site to access this information.
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 these forward-looking statements are reasonable, it cannot guarantee that these expectations will prove to be 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 materially from what Erdene currently anticipates. Factors that could cause actual results to differ materially from those in the forward-looking statements include the ability to obtain required third-party approvals, market prices, operating and exploration results, continued availability of capital and financing and general economic, market or business conditions. Forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained in this document is indicated as of the current date and is subject to change after this date. The Company undertakes no 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 CONTENT OF THIS RELEASE
Peter C. Akerley, President and Chief Executive Officer, or
Robert Jenkins, Chief Financial Officer
Phone: (902) 423-6419
Email: [email protected]