AKIPRESS.COM - The Bayan Khundii (BK) gold project in southwestern Mongolia can become one of the highest-grade openpit gold mines in the world, and Mongolia's largest primary gold producer, when it comes on stream in 2025, Mining Weekly reported.

An updated feasibility study completed in August 2023 reaffirmed the project's strong economics. The study incorporates an updated reserve estimate for the BK gold deposit and the maiden mineral reserve estimate from the very high-grade Dark Horse (DH) Mane gold deposit.

The feasibility study includes 3.8-million mineable tonnes from the BK resource at an average diluted head grade of 3.8 g/t gold and 1.7 g/t silver, and 200 000 mineable tonnes from the DH resource at an average diluted head grade of 7 g/t gold, all of which are proven and probable reserves.

Envisioned is a high-grade, openpit mine, beginning at surface in the southern portion of the BK deposit, and expanding northward into adjacent zones at Midfield and Midfield NE.

Mining at the DH openpit will start in Year 3 and will be processed concurrently with the BK gold deposit ore. The mine will produce 74 200 oz/y of gold on average over a 6.5-year mine life, with average gold production of 86 900 oz estimated from years 2 to 5.

The project has a pretax net present value, at a 5%, 7.5% and 10% discount rate, of $245-million, $207-millions and $175-million respectively, and an internal rate of return of 44%.