Erdene Resource Development Reports Significant Progress at Bayan Khundii Gold Mine
Erdene Resource Development Corp. has released a comprehensive operational update for its Bayan Khundii Gold Mine in Mongolia, highlighting substantial progress during the fourth quarter of 2025. The company, which trades on multiple exchanges including TSX under the symbol ERD, reported encouraging results as production ramp-up continues at the high-grade, open-pit operation.
Strong Production Metrics and Financial Performance
During Q4 2025, the Bayan Khundii Gold Mine demonstrated robust operational performance with several key achievements:
- Gold and silver sales totaled 7,434 ounces of gold and 2,634 ounces of silver, generating approximately US$31 million in gross project revenues
- Average realized prices reached US$4,153 per ounce for gold and US$53 per ounce for silver
- Processing operations handled 144,845 tonnes of ore, averaging 2.0 grams per tonne gold content
- Mill throughput achieved 77% of the designed 1,950 tonne per day capacity during the quarter, reaching nameplate capacity for much of December
The mine, operated through Erdene Mongol LLC as a joint venture with Mongolian Mining Corporation, successfully produced its first gold and silver doré in mid-September 2025 following receipt of necessary state approvals and permits.
Management Commentary on Operational Success
Peter Akerley, President and CEO of Erdene, expressed satisfaction with the mine's progress during its initial operational phase. "We are very pleased with progress during the initial months of operations at the Bayan Khundii Gold Mine," stated Akerley. "Following the first gold pour in mid-September, the team has worked to optimize operations in the processing facility, which is performing in line with expectations."
Akerley further noted that the processing plant has consistently achieved nameplate throughput while delivering gold recoveries that meet or exceed projections from the most recent feasibility study. Gold recoveries have maintained consistency with or surpassed the forecast average of 93%.
Exploration Activities and Future Focus
Beyond current operations, Erdene has continued exploration activities in the surrounding Khundii Minerals District, which the company describes as "one of the most exciting new mineral regions in Asia." During Q4 2025, the company completed 5,433 metres of drilling at the Dark Horse and Altan Arrow gold prospects near Bayan Khundii, with results expected in the first quarter of 2026.
Looking ahead to Q1 2026, Erdene Mongol LLC will concentrate on grade control and mining processes with the objective of delivering the head grade defined in the feasibility study. The company emphasized that processed material during the initial ramp-up phase was primarily sourced from mineralized waste as plant operations were tested and fine-tuned.
Strategic Importance and Regional Development
Akerley highlighted the broader significance of the Bayan Khundii Gold Mine's successful start-up, noting that "The start-up of the Bayan Khundii gold mine is a major milestone for the Company and our stakeholders." He explained that the operational mine provides both a platform for future development and will generate cash flow to support additional projects within the Khundii Minerals District.
The company anticipates continued drilling throughout 2026, building on the exploration work initiated in the fourth quarter of 2025. All financial figures referenced in the update are denominated in US dollars unless otherwise specified.
