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Erdene Resource Development Corp T.ERD

Alternate Symbol(s):  ERDCF

Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration and development of precious and base metals in underexplored and highly prospective Mongolia. It has interests in three mining licenses and an exploration license in Southwest Mongolia. Its projects include Khundii Minerals District, Bayan Khundii Gold Project, Altan Nar, Greater Dark Horse, Ulaan, Zuun Mod and Khuvyn Khar. Its projects are located in the eastern portion of the Central Asian Orogenic belt. The Bayan Khundii mining license covers 2,309 hectares and, in addition to the Bayan Khundii high-grade gold deposit, includes its highly prospective 20 square kilometers greater Dark Horse prospect area, including the Dark Horse Mane high-grade gold discovery. The Zuun Mod Molybdenum-Copper Project is a porphyry molybdenum-copper deposit. The Altan Nar mining license covers 4,669 hectares. The central and northern portion of the Ulaan license hosts a porphyry copper prospect.


TSX:ERD - Post by User

Comment by minefolloweron Oct 21, 2024 8:04am
99 Views
Post# 36274345

RE:RE:RE:new to this company

RE:RE:RE:new to this companyAfter the deal with MMC, they own 50% of the developing mine and adjacent areas (they have a NSR, but only after 400,000 oz of production). They need to find significant additional resources for upside on the stock. The market cap has run up to $250 million, which is fully valued, IMO. It's going to take a lot of addtional drilling to find the resources needed to push the stock above $1.00. They have 350 million shares outstanding (almost 400 million fully diluted). That's a very big number. If you're interested in upside of 1X, then it might be a buy, but I wouldn't count of 5 or 10X from this level unless they find something big, like OT. It could happen, maybe, but they've been in country for 20+ years, and this is the first real asset of any value they've found. And lets not forget this is Mongolia. Political winds change direction and I wouldn't be surprised to hear calls for nationalizing mining resources at some point, including Erdene's, like has happened in the past. Although the likelihood of that happening may be low in today's environment, the impact to the company would be extreme, so it can't be ignored. The CEO has deep connections to the country, which would certainly help if things got political.
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