Erdene confirms viability of Donkin coal project in Canada

Erdene Resource Development Corp. ("Erdene") /quotes/zigman/41761 CA:ERD -7.27% , is pleased to announce receipt of a National Instrument 43-101 compliant Technical Report ("the Report") for the Donkin Coal Project ("Donkin") in Eastern Canada. Marston & Marston, Inc. ("Marston") of St. Louis, Missouri, prepared the Report on behalf of Erdene and project manager Xstrata Coal Donkin Management Limited ("Xstrata"). Donkin is a joint venture between Xstrata Coal Donkin Limited (75%) and Erdene (25%). The purpose of the Report is to present the results of the Pre-Feasibility Study ("PFS") on the Donkin Export Coking Coal Project prepared by Xstrata and the reserves defined by the PFS. The Report assesses the viability of a multiple continuous miner ("CM") underground operation, producing approximately 3.5 million tonnes per year ("Mtpa") Run of Mine ("ROM") coal that would be subsequently washed to provide 2.75 Mtpa of product coal suitable for the international export coking and thermal coal markets and domestic thermal coal markets. The Report confirms the technical and economic viability of the Donkin Export Coking Project and supports advancing the project to the next phase. The PFS concludes that Donkin has a $1.06 billion Net Present Value ("NPV") (8% discount rate) based on project development capital of approximately $500 million and demonstrates the potential for first quartile operating costs.