Overview
The Bayan Khundii gold mine (“BK” or the “Project”) is located in southwestern Mongolia, within the Khundii Minerals District, approximately 16 kilometres south of the Company’s Altan Nar deposit. The Mine is owned by the private Mongolian company, Erdene Mongol LLC, jointly owned by Erdene and Mongolian Mining Corporation (“MMC”), the country’s largest independent miner.
From a greenfield discovery in 2015, Bayan Khundii has emerged as an important mine for Mongolia and the foundation for growth in the Khundii Minerals District achieving first pour during Q3 2025. Bayan Khundii is forecast to be one of the highest grade open-pit mines globally and is positioned to achieve nameplate capacity in late Q4 2025. Gold from Bayan Khundii will be sold to Mongolia’s Central Bank at spot gold price to bolster foreign currency reserves, playing an impactful role in Mongolia’s economic stability.
The mine has total gold reserves of 513,700 ounces at an average head grade of 4.0 g/t gold, including the Dark Horse satellite gold deposit, and is expected to produce approximately 85,000 ounces gold per annum.
As one of Mongolia’s leading exploration companies, Erdene is focus on mine expansion and extension opportunities. Recent drilling at Bayan Khundii returned excellent results, expanding mineralized zones and intersecting exceptionally high-grade mineralization in near-surface zones outside the modelled mineralized orebody, including the highest-grade intercept to date in the Khundii Minerals District. Exploration will ramp-up at the deposits and prospects surrounding the initial Bayan Khundii mine held by Erdene Mongol LLC in late 2025 and early 2026.
Erdene secured the mining license for Bayan Khundii from the Mineral Resource and Petroleum Authority of Mongolia (“MRPAM”) in 2019. The Bayan Khundii mining license covers 2,309 hectares and, in addition to the Bayan Khundii high-grade gold deposit, includes Erdene’s highly prospective 20 km2 greater Dark Horse prospect area, including the Dark Horse Mane high-grade gold discovery. The mining license is valid for an initial term of 30 years with the ability to extend to 70 years.
Bayan Khundii Gold Deposit Resource & Reserves
| Mineral Resource Classification | Quantity
(Mt) | Gold Grade (Au g/t) | Ounces Gold (Koz) | Silver Grade
(Ag g/t) | Ounces Silver (Koz) |
|---|---|---|---|---|---|
| Measured | 4.0 | 3.03 | 394 | 1.44 | 187 |
| Indicated | 3.3 | 2.04 | 219 | 1.22 | 131 |
| Measured & Indicated | 7.4 | 2.58 | 613 | 1.34 | 319 |
| Inferred | 0.2 | 1.08 | 6 | 1.32 | 8 |
| Reserves Classification | Tonnage
(Mt) | Gold Grade (Au g/t) | Ounces Gold (Koz) | Silver Grade
(Ag g/t) | Ounces Silver (Koz) |
|---|---|---|---|---|---|
| Proven | 2.7 | 4.1 | 360.2 | 1.7 | 159.4 |
| Probable | 1.1 | 3.0 | 104.7 | 1.7 | 61.1 |
| Total | 3.8 | 3.8 | 464.9 | 1.7 | 220.5 |
Dark Horse Gold Deposit Resource & Reserves
| Indicated Mineral Resource | Inferred Mineral Resource | |||||
|---|---|---|---|---|---|---|
| Mineral Resource Classification | Tonnes (Kt) | Gold Grade (Au g/t) | Ounces Gold (Koz) | Tonnes (Kt) | Gold Grade (Au g/t) | Ounces Gold (Koz) |
| Oxide | 578 | 3.0 | 56.2 | 75 | 1.1 | 2.7 |
| Transitional | 99 | 1.5 | 4.8 | 109 | 1.2 | 4.1 |
| Fresh | 5 | 4.9 | 0.7 | – | – | – |
| Total | 682 | 2.8 | 61.7 | 184 | 1.2 | 6.8 |
| Mineral Resource Classification | Tonnes
(Mt) | Gold Grade (Au g/t) | Ounces Gold (Koz) |
|---|---|---|---|
| Proven | – | – | – |
| Probable | 0.2 | 7.0 | 48.8 |
| Total | 0.2 | 7.0 | 48.8 |
Please refer to the Company’s NI 43-101 Technical Report for full details. Bayan Khundii license has a 1.0% net smelter returns royalty (“NSR Royalty”) in favour of Sandstorm Gold Ltd.
Latest Reports
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Bayan Khundii Gold Project Updated Feasibility Study NI 43-101 Technical Report
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Bayan Khundii Gold Project Feasibility Study NI 43-101 Technical Report
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ESIA Khundii Gold Project (Mongolian)
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ESIA Khundii Gold Project
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Non-Technical Summary ESIA Khundii Gold Project
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Non-Technical Summary ESIA Khundii Gold Project (Mongolian)
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NI 43-101 Technical Report for the Pre-Feasibility Study of the Bayan Khundii Project and Preliminary Economic Assessment of the Altan Nar Project
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N1 43-101 Technical Report for the Preliminary Economic Assessment of the Khundii Gold Project
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National Instrument 43-101 Mineral Resource Technical Report
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Bayan Khundii NI 43-101 Technical Report
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Bayan Khundii NI 43-101 Technical Report, Q1-2017