Acquisition Date

2016 / Apr / 14

Terms

1.0% NSR

Operator

Erdene Resource Development Corp.

Bayan Khundii (“Rich Valley”) is located within the Tian Shan Copper-Gold Belt in southwest Mongolia and was discovered in 2015 when a rock-chip sampling program revealed multiple quartz veins that returned high-grade gold values. Erdene followed up the initial work with a comprehensive exploration program that has included geological mapping, soil geochemical surveys, surface rock chip sampling, a ground magnetic survey, induced polarization surveys, and the completion of more than 38,000 metres of diamond drilling.

The Bayan Khundii gold mineralization is associated with quartz adularia veins and breccias and is disseminated within the altered host rocks. Visible gold has been identified in several drill holes as irregular-shaped grains, but the gold is generally fine grained. Drilling has intersected high gold grades (with up to 306.0 g/t gold over 1.0 metre intervals) within broad mineralized zones containing up to 131.0 metres of 3.9 g/t gold (including 80.0 metres of 6.0 g/t gold). Multiple high-grade targets have been established through limited shallow drilling and surface sampling within four kilometres of the deposit, including the Khar Mori (Dark Horse) prospect identified in late 2019.

An updated resource estimate effective as of June 2021 outlined Measured & Indicated Resources of 8.3 Mt grading 2.2 g/t gold containing 585 koz of gold, an increase of 36% in the Measured category based on a cut-off grade of 0.4 g/t gold. A July 2020 Feasibility Study contained a Mineral Reserve Estimate of Proven and Probable Reserves of 3.4 Mt grading 3.7 g/t gold containing 409.0 kozs of gold. The Feasibility Study contemplates a high-grade open pit mine using conventional crushing and grinding, leach and a carbon-in-pulp plant with processing capacity of 1,800 tpd. Gold recovery is estimated at 93% and average annual gold production of 63,500 ounces is expected over a six-year mine life.

Recent Activity

December 2021

A major milestone was achieved with the approval of the Detailed Environmental Impact Assessment (DEIA) for the Bayan Khundii project by the Ministry of Environment and Tourism of Mongolia. The DEIA approval allows Erdene to commence preparatory works for the construction of the Bayan Khundii project.

August 2021

Erdene announced an updated resource estimate for the Bayan Khundii project. The June 2021 Mineral Resource Estimate outlines Measured & Indicated Resources of 8.3 Mt grading 2.2 g/t gold containing 585 koz of gold, an increase of 36% in the Measured category based on a cut-off grade of 0.4 g/t gold.

July 2021

Drilling during Q2 2021 at the recently discovered Dark Horse prospect within the Bayan Khundii project returned high grade mineralization (≥1 g/t gold) along strike and down dip. Highlights include:

  • AAD-123: 30 m of 2.9 g/t gold, from 58 m;
  • AAD-124: 27 m of 5.9 g/t gold, from 24 m; and
  • AAD-126: 30 m of 5.6 g/t gold, from 10 m.

Bayan Khundii

 

Bayan Khundii Royalty Map
Bayan Khundii Royalty Map