The Gold Standard: How Bayan Khundii Drilling Is Shaping Erdene's Next Steps?

2 min read | September 25, 2024 10:42 AM EDT | By Team Kalkine Media

The Gold Standard: How Bayan Khundii Drilling Is Shaping Erdene's Next Steps? — Image source: Shutterstock

Key Highlights

Drilling results at the Bayan Khundii Gold Project confirmed high-grade gold deposits, with notable intersections exceeding 70 g/t.

A significant 13,500-metre RC drilling program is set to begin, aimed at finalizing the mine plan.

Erdene Resource has engaged the local workforce, training around 90 operators, and plans for annual production of 86,900 ounces of gold during peak years.

The sector involved is gold mining, and Erdene Resource Development Corp (TSX:ERD) has provided an update regarding its Bayan Khundii Gold Project, which is currently under construction. The latest drilling results from initial mining areas have affirmed the high-grade characteristics of the deposit, aligning well with the company's reserve model.

Shallow Drilling Results

The first phase of ore control drilling has yielded promising results. Notably, one drill hole revealed 3 metres at an impressive 70.61 grams per tonne (g/t) gold, which included a remarkable 1 metre at 198 g/t. Another significant intersection returned 3 metres at 33.29 g/t, featuring 1 metre at 99 g/t. Additionally, a standout hole reported 4 metres at 21.7 g/t, which included 2 metres at 41.55 g/t. Further exploration has revealed additional intersections, such as 13 metres at 3.68 g/t and hole 23927, which showed 5.7 metres at 14.82 g/t, including 1 metre at 68.2 g/t.

Upcoming Drilling Programs

To enhance project understanding and finalization, a 13,500-metre reverse circulation (RC) drilling program is scheduled to commence shortly. This program is designed to refine the mine plan before the onset of mining operations. Additionally, exploration drilling conducted around the perimeter of the economic pit has been completed, with results anticipated soon.

Local Workforce and Production Goals

Erdene Resource has focused on community engagement by hiring and training approximately 90 equipment operators from the nearby Bayankhongor province. Initially, mining operations will target the Bayan Khundii pit, with plans to develop a satellite pit at the Dark Horse Mane deposit beginning in the third year of operation. The company aims to achieve an annual production rate of 650,000 tonnes of ore, with an average gold grade of 4 g/t, translating to approximately 86,900 ounces of gold produced annually during peak operational years.

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