Erdene Resource Development Corporation JSC announced the results of an independent Bankable Feasibility Study for the 100%-owned, high-grade, open-pit Bayan Khundii Gold Project in southwest Mongolia.
The Technical Report incorporates an updated reserve estimate for Bayan Khundii. The BFS includes 3.4 million mineable tons from the Bayan Khundii resource at an average diluted head grade of 3.7 g/t gold, all of which are Proven and Probable Reserves. Also, measured and indicated resources of 521,000 ounces gold at an average grade of 3.16 g/t gold.
Furthermore, the project will be continued for eight years. Base Case after tax Net Present Value of US$100 million (NPV5%) and 42% Internal Rate of Return (IRR), increasing to US$216 million and 77% IRR, respectively, at current gold price of US$1,800/oz.