MMC Achieves Historic Gold Pour at Bayan Khundii Mine
Significant Milestone for Mongolian Mining Corporation
HONG KONG — Mongolian Mining Corporation (“MMC” or the “Company”; HKEx: 975; OTCQX: MOGLF), the largest privately-held mining entity in Mongolia, proudly announces the completion of its first gold pour at the Bayan Khundii gold mine in Mongolia. This major achievement highlights MMC’s capabilities in the mining sector and sets a strong foundation for future growth.
Bayan Khundii Mine Overview
The Bayan Khundii mine boasts an impressive gold reserve of 513,700 ounces, with a remarkable average head grade of 4.0 g/t. This operation is projected to generate around 85,000 ounces of gold annually while maintaining a low all-in sustaining cost, positioning it favorably within the market.
Strategic Alliance and Investments
Recently, MMC has made a significant investment of US$40 million for a 50% equity interest in Erdene Mongol LLC ("EM") as part of a Strategic Alliance and Investment Agreement that took effect in January 2024. At the inception of MMC's involvement, the Bayan Khundii mine was still in its early, greenfield development stages. Through efficient construction efforts, the project evolved into a fully operational mine in just 22 months.
Economic Impact of Gold Production
Gold produced from the Bayan Khundii mine will be sold to Mongolia’s Central Bank at current market prices, thus bolstering the country's foreign currency reserves. This initiative is critical in enhancing Mongolia’s economic stability, with the operational systems in place expected to achieve nameplate production capacity by late Q4 2025.
Leadership and Commitment
Dr. Battsengel Gotov, the Chief Executive Officer of MMC, expressed pride in the progress made at the Bayan Khundii mine. He emphasized the collective effort of employees, contractors, and strategic partners in reaching this key milestone. The MMC team is dedicated to fostering sustainable growth, diversifying its business model, and creating long-term value.
MMC's Broader Business Portfolio
As the largest listed private mining company, MMC is committed to a diversified approach in its operations, which encompasses coking coal, gold, copper, and various non-ferrous metals. This strategic diversification supports MMC's efforts to cultivate robust and sustainable mining practices across southern and western Mongolia.
Conclusion and Future Endeavors
With established operations and commitments to exploration and resource development, the future looks bright for MMC. Collaborating closely with their strategic partners, MMC is focused on exploring further opportunities aimed at extending the operational lifespan of the Bayan Khundii mine and identifying new reserves.
Frequently Asked Questions
What is the significance of the first gold pour at Bayan Khundii?
The first gold pour at Bayan Khundii signifies a major milestone for MMC, marking the transition from development to full-scale production.
How much gold does the Bayan Khundii mine produce annually?
The Bayan Khundii mine is expected to produce approximately 85,000 ounces of gold each year.
What investment has MMC made in Erdene Mongol LLC?
MMC invested US$40 million for a 50% equity interest in Erdene Mongol LLC, facilitating strategic growth and collaboration.
Who leads MMC, and what are their goals?
Dr. Battsengel Gotov is the CEO of MMC, aiming to diversify the business portfolio and strengthen sustainable growth.
What role does gold production play in Mongolia's economy?
Gold production from the Bayan Khundii mine contributes to the Central Bank and enhances Mongolia's foreign currency reserves, supporting economic stability.
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