Erdene Provides Bayan Khundii Gold Mine Update

Core Viewpoint - Erdene Resource Development Corp. has successfully initiated operations at the Bayan Khundii Gold Mine, achieving significant milestones in production and processing efficiency, which positions the company for future growth and exploration opportunities in the Khundii Minerals District [2][3][4]. Production Update - The Bayan Khundii Gold Mine produced its first gold and silver doré in mid-September 2025, following the successful commissioning of the processing plant and receipt of necessary state approvals [4]. - Since operations began, the mine has processed 144,845 tonnes of ore, averaging 1,508 tonnes per day, which is 77% of the nameplate throughput of 1,950 tonnes per day [4][8]. - The processing plant has achieved nameplate capacity for much of December 2025, with gold recoveries consistent with or exceeding the forecast average of 93% [5][8]. Financial Performance - The company sold 7,434 ounces of gold and 2,634 ounces of silver, generating gross revenues of $31 million (C$42.5 million) by December 31, 2025, with average prices of $4,153 per ounce for gold and $53 per ounce for silver [6][8]. Future Projections - The Bayan Khundii mine is projected to process 650,000 tonnes per annum and produce approximately 85,000 ounces of gold annually at full capacity, with guidance to be updated post-initial start-up phase expected in Q2 2026 [7]. Exploration Activities - Recent exploration efforts in the Khundii mining license have focused on near-surface oxide gold and silver mineralization at the Dark Horse and Altan Arrow prospects, with over 5,000 metres of drilling completed in late 2025 and results anticipated in Q1 2026 [10]. - Concurrent metallurgical studies are being conducted to assess the potential for heap leach processing, which could enhance resource availability for the Bayan Khundii plant and support low-cost mine expansion opportunities [10].