Erdene Resource expects construction decision for Bayan Khundii by mid-2021
(Kitco News) - Erdene Resource Development (TSX:ERD; MSE:ERDN) announced today that the company recorded a net loss of $13,116,358 for the year ended December 31, 2020, compared to a net loss of $2,683,292 for the year ended December 31, 2019.
Exploration and evaluation expenditures, including capitalized expenditures, totaled $9,276,028 for the year ended December 31, 2020, compared to $6,694,914 for the year ended December 31, 2019, largely due to increased exploration work as the company drilled over 15,000 metres in the current year, compared to approximately 5,000 metres in the prior year. Additionally, expenditures on the Bayan Khundii Feasibility Study, Detailed Engineering and Design and Construction Readiness activities exceeded those on the Prefeasibility Study in the prior year.
"Despite the impact of COVID-19 on the global economy over the past year, our company made significant progress executing on our two-pronged strategy of advancing the Bayan Khundii gold project towards development while expanding high-grade gold resources in our Khundii Gold District," said Peter Akerley, Erdene's President and CEO.
"Based on the strong economics of the high-grade, open-pit, BK gold project, outlined in the Feasibility Study delivered in August, we have commenced project finance and construction readiness," continued Mr. Akerley. "In October we signed a mandate letter with Export Development Canada to provide the majority of the capital required to build the mine and due diligence is progressing well. Construction readiness activities including detailed engineering continues as we seek to fast track this foundational project. A construction decision is expected in mid-2021, contingent upon the impact of the COVID-19 pandemic."
Erdene Resource Development's deposits are located in southwestern Mongolia's Edren Terrane, within the Central Asian Orogenic Belt, host to some of the world's largest gold and copper-gold deposits. The company has been the leader in exploration in the region over the past decade and is responsible for the discovery of the Khundii Gold District with interests in three mining licenses and two exploration licenses hosting multiple high-grade gold and gold/base metal prospects.