Erdene Resource Development Corp., a prominent mining company, has officially announced its operating and financial results for the year ended December 31, 2025. The report provides a comprehensive update on the Bayan Khundii Gold Mine, a key asset in Mongolia, and outlines significant exploration activities across various projects.
Bayan Khundii Gold Mine Achievements
In 2025, Erdene successfully completed construction, commissioning, and permitting for the Bayan Khundii Gold Mine during the third quarter. The mine, designed to process 650,000 tonnes of ore annually and produce up to 85,000 ounces of gold, achieved up to 88% of its nameplate throughput by December. Direct construction costs totaled US$120 million, staying within approximately 20% of the project budget.
Following the first gold pour in September 2025, the mine produced and sold 7,434 ounces of gold and 2,634 ounces of silver. The weighted average prices realized were US$4,187 per ounce for gold and US$54 per ounce for silver, contributing to gross project revenues of US$31 million, including silver by-product sales.
Exploration and Resource Expansion
Erdene conducted extensive exploration programs, drilling over 5,000 metres at the Dark Horse and Altan Arrow sites to test near-mine resource expansion potential. Significant findings include expanded high-grade gold mineralization in Dark Horse South, with intersections such as 9 grams per tonne gold over 19 metres and 28.7 grams per tonne gold over 3 metres.
At Dark Horse North, multiple zones of gold mineralization were intersected within the transition to primary material, including 43 metres of 1.89 grams per tonne gold, which are potentially suitable for heap leaching. Additionally, near-surface intersections at Altan Arrow included one metre of 16.2 grams per tonne gold within a wider interval of 16 metres averaging 1.4 grams per tonne gold, starting just 6 metres from surface, along with silver intersections of up to 124 grams per tonne over two metres.
Community and Environmental Initiatives
Erdene has demonstrated a strong commitment to local communities and environmental stewardship. Approximately 40% of site personnel are residents of Bayankhongor province, and 14% of direct employees at Erdene Mongol LLC are female as of the end of 2025. The company has engaged local contractors for mine site services and implemented various environmental programs to support sustainable operations.
CEO Insights and Future Outlook
Peter Akerley, President and CEO of Erdene, emphasized the strategic importance of the Bayan Khundii Gold Mine as the foundation for the emerging Khundii Minerals District, one of Asia's most exciting new mineral regions. He highlighted the partnership with Mongolian Mining Corporation and the potential for expanding opportunities within the district.
Akerley noted that recent exploration has expanded gold mineralization at Dark Horse, complementing the high-grade reserve scheduled for mining and processing starting in Q3 2027. He also mentioned advancements in wholly owned projects, including an updated independent mineral resource estimate for the Zuun Mod Molybdenum-Copper project, confirming it as one of Asia's largest undeveloped projects, and an option agreement to acquire up to 80% of the Tereg Uul Copper-Gold Project adjacent to the Oyu Tolgoi deposit.
Financial and Operational Highlights
Key highlights from 2025 and subsequent events include the initiation of a preliminary economic assessment for the Zuun Mod project and the execution of the Tereg Uul option agreement. Funds from financing in early 2026 are expected to accelerate the development of these projects, positioning Erdene for future growth in the mining sector.
This release should be read in conjunction with the Company's 2025 Financial Statements, Management's Discussion and Analysis, and Annual Information Form, available on the Company's website and SEDAR+. All dollar amounts are in Canadian currency unless otherwise specified.
