Erdene Resource Development Corp. Releases Q1 2026 Update for Bayan Khundii Gold Mine
Erdene Resource Development Corp., trading on the TSX, MSE, and OTCQX under symbols ERD, ERDN, and ERDCF respectively, has issued a production update for the first quarter of 2026 at its Bayan Khundii Gold Mine in Mongolia. The mine, operated through the joint venture Erdene Mongol LLC with Mongolian Mining Corporation, reached commercial production during this period, marking a significant milestone for the company.
Operational Highlights and Financial Performance
During Q1 2026, the Bayan Khundii Gold Mine achieved an average throughput of nearly 90% of its nameplate capacity, with gold recovery rates averaging over 96%, surpassing projections from the latest feasibility study. Peter Akerley, President and CEO of Erdene, emphasized the successful transition through ramp-up, noting that higher-grade ore is now being delivered to the process plant.
The mine processed 151,000 tonnes of ore, averaging 1,675 tonnes per day, which represents 94% of the target production throughput for the quarter ended March 31, 2026. The processed grade averaged 1.9 grams per tonne of gold for the quarter, with a notable increase to 2.7 grams per tonne in March as mining operations accessed multiple high-grade zones.
Sales and Revenue Generation
Erdene Mongol LLC sold 8,527 ounces of gold and 3,135 ounces of silver during the quarter, at average prices of $4,872 per ounce for gold and $80 per ounce for silver. This generated gross revenues of $42 million, equivalent to approximately C$57 million. To date, the Bayan Khundii Gold Mine has produced 15,961 ounces of gold, with sales showing a 20% increase compared to the first quarter of operations.
Future Outlook and Strategic Initiatives
With proceeds from financing completed in Q1 2026, Erdene is well-positioned to advance its wholly-owned precious and base metal projects in the Khundii and Oyu Tolgoi districts. Exploration, technical studies, and permitting activities are currently underway. In Q2, the focus will be on optimizing mining and processing operations, including improvements in grade control, blasting, and crushing, with expectations for positive results aided by better seasonal conditions. An update on resources and mineral reserves for the EM deposits, as well as mine plans for Bayan Khundii and Dark Horse, is scheduled for Q3.
