Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) has announced the filing on SEDAR of the independent Preliminary Economic Assessment (PEA) Technical Report for its 100%-owned Khundii Gold Project in southwest Mongolia.

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. 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 of 56% at a US$1,200/ oz gold price;
• After-tax NPV5% of US$124 million and IRR of 68% at a US$1,300/oz gold price, demonstrating significant leverage to gold prices;
• Low initial capital expenditure of US$32 million, using a contract mining fleet;
• All-in sustaining cash cost (“AISC”) of US$714/oz of recovered gold;
• Payback of less than 2 years. 

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