Overview
Stage | Construction |
Mine Type | Open Pit |
Commodities |
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Mining Method |
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Production Start | ... |
Mine Life | 6.75 years (as of Jan 1, 2023) |
Bayan Khundii Gold Project is situated within an emerging gold district that Erdene refers to as the Khundii Minerals District (“KMD”), which includes the BK and Dark Horse Mane gold deposits.
January 29, 2024 Erdene is announce the commencement of full construction at the Bayan Khundii Gold Project and the close of the investment by Mongolian Mining Corporation (“MMC”) as part of the Strategic Alliance Agreement (“SAA”) to develop the Khundii Minerals District. |
Latest News | Erdene Secures Debt Financing for Bayan Khundii Gold Project From Strategic Partner February 8, 2024 |
Source:
p. 1
The Project is 100% held by Erdene Mongol LLC, a wholly owned subsidiary of Erdene Resource Development Corp. (Erdene). The Project includes the Khundii Exploration License (XV-015569; 2,205.71 ha) and the Khundii Mining License (MV-021444, 2,308.62 ha).
On January 10, 2023, Erdene executed a Strategic Alliance Agreement (“SAA”) with Mongolian Mining Corp. (MMC) to develop the Bayan Khundii Gold Project. On January 23, 2024, the parties formally closed the SAA by issuing shares in Erdene Mongol LCC (EM) to MMC representing a 50% equity ownership.
Details of the SAA include:
* MMC has invested US$40 million in EM, Erdene’s Mongolian subsidiary holding the Khundii and Altan Nar mining licenses and the Ulaan exploration license.
* Erdene retains a 50% equity interest in EM and a 5.0% Net Smelter Return royalty on production from the Khundii, Altan Nar and Ulaan licenses, as well as any properties acquired within a 700km2 area of interest, beyond the first 400,000 ounces gold recov
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Deposit Type
- Epithermal
- Vein / narrow vein
- Breccia pipe / Stockwork
Summary:
The Project is located within the southeast part of the Trans Altai Terrane (“TAT”). The Trans Altai is an island arc terrane within the Central Asian Orogenic Belt (“CAOB”), which extends more than 3,000 km from the Urals to the Pacific. The CAOB is host to numerous porphyry copper and epithermal Au deposits of largely Devonian to Permian age. The closest known deposits of this type in Mongolia are those of the Oyu Tolgoi cluster, located ~700 km ESE of Bayan Khundii.
The southeast portion of the TAT is referred to by Erdene as the Khundii Minerals District (“KMD”) and host to a number of porphyry and epithermal deposits and occurrences, including the BK gold deposit, the Dark Horse gold deposit, the Altan Nar gold-polymetallic deposit, the Zuun Mod Mo-Cu deposit and the Ulaan SE gold mineralization.
The bedrock geology of the Khundii license area is dominated by a sequence of the Carboniferous Ulziithar Formation, comprised of tuffaceous units, volcanoclastic sedimentary sequences, basalt and andesite flows and volcanic breccia and is approximately 2,000 m thick. Rocks of the Ulziitkhar Formation were intruded by multiple plutons and stocks of the early Carboniferous Bayan Airag intrusive complex, and together these rocks were unconformably overlain by Permian and Jurassic volcanic and sedimentary units. All rocks in the region are overlain by unconsolidated sediments of Quaternary or Recent age.
Three sets of structures were distinguished ........
Summary:
The Bayan Khundii Project site is comprised of the open-pit mine, processing plant and integrated waste rock and dry cake tailings storage facility. The proposed mine uses conventional open-pit truck and shovel methods for ore extraction.
The BK and Dark Horse Open pits development is planned in two phases.
The first phase targets the western and south areas, as included in the optimal pit shell, with consideration of allowing productive mining width and operation safety. This first phase will excavate near surface, high grade resources, reaching as deep as possible at the striker and midfield zones while leaving sufficient mining width and access for the ultimate pit design.
The second phase pit development will excavate deeper materials covering multiple ore grade levels down to the calculated cut-off grade.
The following sequence of activities are required to extract ore and place on the Run of Mine (“ROM”) Stockpile prior to blending and/or as direct feed to the processing plant:
• Topsoil Removal - Prior to the commencement of mining operations, all topsoil (estimated to 0.3 m depth from surface) is removed via dozer, pushed to windrows, then loaded on to trucks and hauled to a topsoil stockpile located adjacent to the respective pits.
• Drill and Blast - Rock is drilled and blasted in bench heights ranging from 5 to 10 m depending on the level of ore control necessary in order to fragment the waste rock sufficient ........
Source:
p.322-323
Source:
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Flow Sheet:
Summary:
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Source:
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Reserves at August 1, 2023:
The updated Mineral Resources for the Bayan Khundii Project at a 0.4 g/t Au cut-off grade.
The cut-off grade for mineral reserve calculations is 0.63 g/t Au.
Category | Tonnage | Commodity | Grade | Contained Metal |
Proven
|
2.7 Mt
|
Gold
|
4.1 g/t
|
360.2 koz
|
Proven
|
2.7 Mt
|
Silver
|
1.8 g/t
|
159.4 koz
|
Probable
|
1.3 Mt
|
Gold
|
3.62 g/t
|
153.5 koz
|
Probable
|
1.1 Mt
|
Silver
|
1.7 g/t
|
61.1 koz
|
Proven & Probable
|
4 Mt
|
Gold
|
3.94 g/t
|
513.7 koz
|
Proven & Probable
|
3.8 Mt
|
Silver
|
1.7 g/t
|
220.5 koz
|
Indicated
|
3.9 Mt
|
Gold
|
2.19 g/t
|
275.2 koz
|
Indicated
|
3.3 Mt
|
Silver
|
1.22 g/t
|
131 koz
|
Measured & Indicated
|
7.9 Mt
|
Gold
|
2.63 g/t
|
669.2 koz
|
Measured & Indicated
|
7.4 Mt
|
Silver
|
1.34 g/t
|
319 koz
|
Inferred
|
0.384 Mt
|
Gold
|
1.04 g/t
|
12.8 koz
|
Inferred
|
0.2 Mt
|
Silver
|
1.32 g/t
|
8 koz
|
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