Project Overview and Potential
The Bayan Khundii (BK) gold project, located in southwestern Mongolia, is on track to become one of the world’s highest-grade open-pit gold mines and the largest primary gold producer in Mongolia by 2025. An updated feasibility study completed in August 2023 highlights the project’s promising economic potential.
Feasibility Study Highlights
The updated study encompasses a revised reserve estimate for the BK gold deposit and the first mineral reserve estimate from the high-grade Dark Horse (DH) Mane gold deposit. The projected mining operation includes 3.8 million mineable tonnes from the BK resource, averaging 3.8 g/t gold and 1.7 g/t silver. Additionally, 200,000 mineable tonnes from the DH resource are anticipated, with an impressive average diluted head grade of 7 g/t gold. All these figures are categorized as proven and probable reserves.
Mining and Production Plans
The BK project envisions a high-grade, open-pit mine starting at the southern portion of the BK deposit and expanding northward. The mining operation at the DH open-pit is expected to commence in the third year, with its ore processed concurrently with that from the BK gold deposit. The mine is projected to produce an average of 74,200 ounces of gold annually over a 6.5-year lifespan. Notably, average gold production is estimated at 86,900 ounces from years two to five.
Financial Viability and Returns
Financial evaluations of the project indicate a promising outlook. The pretax net present value, calculated at discount rates of 5%, 7.5%, and 10%, stands at $245 million, $207 million, and $175 million, respectively. The internal rate of return is calculated at an impressive 44%.
As the Bayan Khundii gold project progresses, it represents a significant step forward for Mongolia’s gold mining sector, promising to enhance its position in the global gold market. 
