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Erdene Files Khundii Gold Project Preliminary Economic Assessment Technical Report
HALIFAX, Nova Scotia, Feb. 05, 2019 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to announce
About this update from Erdene Resource Development Corporation
[{"type":"text","content":" HALIFAX, Nova Scotia, Feb. 05, 2019 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) (\"Erdene\" or the \"Company\") is pleased to announce the filing on SEDAR of the independent Preliminary Economic Assessment (“PEA”) Technical Report (the “Report”) for its 100%-owned Khundii Gold Project (the “Project”) in southwest Mongolia. The Report entitled “NI 43-101 Technical Report for the Preliminary Economic Assessment of the Khundii Gold Project”, dated February 4, 2019, was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) by RPMGlobal Asia Limited (“RPM”). The Report is available under the Company’s profile at www.sedar.com and will also be available on the Company’s website at www.erdene.com. “The PEA demonstrates the robust economics of the high-grade, low-capital Khundii Gold Project,” said Peter Akerley, Erdene’s President and CEO. “The 56% Internal Rate of Return (“IRR”) at a US$1,200/ounce (“oz”) gold price is amongst the highest in our peer group. Additionally, the Project’s after-tax Net Present Value at a 5% discount rate (“NPV5%”) of US$99 million increases to $124 million at a US$1,300/oz gold price, demonstrating the Project’s leverage to higher gold prices.” “We have accepted RPM’s recommendation to proceed to a NI 43-101 Pre-Feasibility Study, and we have received proposals from engineering firms to lead the work, which we plan to award this quarter. Simultaneously, we are progressing as expected on securing mining licenses for the Project, which provide long-term security of tenure, and are finalizing exploration plans for the 2019 field season, as we seek to grow resources,” concluded Mr. Akerley. PEA Highlights for Khundii Project Open Pit Gold Mine Development The PEA envisions a high-grade, open-pit mine, producing an average of 51,200 oz per year at an average grade of 3.42 g/t gold over eight years. Mining will begin at the Bayan Khundii Striker Zone, expanding into adjacent zones within Bayan Khundii, prior to incorporating resources from the neighbouring Altan Nar deposit in later years. The development incorporates a conventional gravity separation circuit and a carbon-in-pulp plant with processing capacity of 1,800 tonnes per day. The key Project metrics are highlighted below: After-tax NPV5% of US$99 million and IRR ...