Canadian miner Erdene Resource Development (TSX:ERD) has poured its first gold at the Bayan Khundii mine in southwestern Mongolia, marking a major milestone for the project less than a decade after discovery.Erdene President and CEO Peter Akerley said the deposit, first identified in 2015, has quickly become a cornerstone of the Khundii Minerals District.“With construction of a 242-kilometre power line, mining underway, the process plant commissioned and first gold doré poured in just 22 months, the team deserves tremendous credit,” he said.The mine is expected to rank among the highest-grade open-pit operations globally. It is projected to reach nameplate capacity in late 2025, producing about 85,000 ounces annually at a low-quartile all-in sustaining cost. Total reserves stand at 513,700 ounces at an average head grade of 4 grams per tonne, including the Dark Horse satellite deposit.Gold from Bayan Khundii will be sold to Mongolia’s Central Bank at spot prices, strengthening the country’s foreign currency reserves. Record speedAkerley said the gold pour comes just 10 years after Erdene geologists discovered high-grade surface mineralization and five years after completing a feasibility study. He said this is one of the fastest timelines in recent memory for a mine to move into production.It also comes at times when gold prices are skyrocketing, hitting on Monday a new record high of $3,682.51 per ounce. Year-to-date gold is up to 40%, with geopolitical uncertainty and robust central bank buying providing strong momentum for the safe-haven metal.Click on chart for live prices. Ownership of the project is split between Erdene, which holds a 50% stake and a 5% net smelter return royalty after the first 400,000 ounces, and Mongolian Mining Corporation (MMC), which holds the other half. MMC secured its interest through a $40-million investment in 2023, acquiring half of Erdene’s subsidiary, Erdene Mongol LLC, which holds the licences.
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