Bayan Khundii production improved: Second-quarter gold output rose 37% quarter over quarter to 11,709 ounces, while throughput reached 94% of capacity and recoveries remained strong at 96%. Mining improvements lifted feed grades to 2.4 grams per tonne and reduced dilution to about 20% or less. Costs and finances strengthened: Cost of revenue fell about 20% to roughly C$2,000 per ounce as production increased, with further reductions expected if grades reach the 3.5-gram-per-tonne target.
Erdene Mongol held US$40 million in cash, reduced debt with a subsequent US$10 million repayment and Erdene reported C$10 million in net income. Growth plans could extend mine life: Erdene approved 12,000 metres of second-half exploration, plans to introduce Dark Horse material into mill feed in 2027 and is evaluating a heap-leach facility. The company also expects a preliminary economic assessment for its Zuun Mod molybdenum-copper project in mid-to-late 2026 while maintaining its approximately 50,000-ounce 2026 gold-production target.
Erdene Resource Development (TSE:ERD) reported higher second-quarter gold production and lower unit costs as the Bayan Khundii Gold Mine in southwestern Mongolia continued its ramp-up toward steadier operations. The Bayan Khundii mine, held through the 50/50 Erdene Mongol joint venture with Mongolian Mining Corporation, produced 11,709 ounces of gold during the second quarter, up 37% from the first quarter. Since first gold was poured in September 2025, the operation has produced nearly 28,000 ounces, President and Chief Executive Officer Peter Akerley said on the company's second-quarter conference call. → Applied Materials Beat Everything but Wall Street's Expectations for Margins Plant throughput totaled 153,000 tonnes of ore, or an average of 1,682 tonnes per day, representing 94% of capacity.
Gold recoveries remained at 96%, exceeding the company's 93% target. Silver production was slightly above 3,300 ounces. Ore feed grades averaged 2.4 grams per tonne in the second quarter, a 25% increase from the prior quarter.
Erdene is targeting a processing grade of 3.5 grams per tonne by year-end, which Akerley said should lead to higher metal output and lower costs. → Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing The company moved 3.8 million tonnes of material during the quarter, up 19% from the first quarter, and mined 247,000 tonnes of ore at an average grade of 1.4 grams per tonne. Ore volume rose 59% quarter over quarter. Akerley attributed the improvement to greater experience with selective high-grade mining, more precise definition of high-grade zones, better blasting practices and high-precision GPS ore tracking.
The front-end mobile crusher also began operating consistently, reducing stockpiling of oversized material that contained relatively higher-grade ore. → AirJoule Technologies: Short Squeeze Setup Amid Rising Risks During the question-and-answer session, Akerley said the company had reduced mining dilution from an estimated 30% to 40% in the first several months of operations to about 20% or less, with a longer-term target closer to 10%. He said mine-delivered grades and mill-reported grades had recently begun to align more closely with grade-control models. The processing plant was designed for a maximum capacity of roughly 1,950 tonnes per day, while the company has targeted throughput of about 92% of that level.
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