Erdene has identified three strategic projects to advance toward development. Each project hosts a specific commodity with strong, long-term market fundamentals:
Erdene has a 25% ownership of the Donkin coal project in Cape Breton, Nova Scotia. Together with our partner Xstrata Coal (75% ownership) the Donkin Coal Alliance is currently working on a $20 million feasibility study which is anticipated to be completed in the first half of 2009. The Harbour seam, with an Indicated Resource of 101Mt and an Inferred Resource of 115Mt, has been targeted for initial development. The Donkin coal is classified as high volatile A bituminous, high-sulphur, medium-ash coal and is considered to have very good thermal and metallurgical qualities. Situated on tidewater, the project is ideally located to take advantage of local (2Mtpa) and international markets.
The Zuun Mod molybdenum property is located in southwestern Mongolia, 200km from railhead at Ceke on the Chinese border. An independent resource estimate has determined that the Zuun Mod deposit has a Measured and Indicated Resource of 237Mt at an average grade of 0.052% molybdenum (0.04% Mo cut off). This equates to 272 million pounds of contained Mo metal. A revised resource estimate is anticipated in the first half of 2009. In 2009, Erdene will advance the project towards a mining license and carry out economic evaluations of the project, focusing on higher grade portions of the deposit, taking into account current and projected market conditions for molybdenum.
Granite Hill is Erdene’s construction aggregate (crushed stone) property, located in Georgia, U.S. The Granite Hill project is being developed as a construction aggregate quarry primarily to serve the growing Florida and costal South Carolina and Georgia markets. Granite Hill is adjacent to rail and mine permitting is complete. Ready Mix USA, LLC has been granted an exclusive right to mine, process, and sell aggregate from the Granite Hill property subject to a royalty payable to Erdene. Granite Hill has a targeted production rate of 1.5Mt of granite aggregate per annum.
