Erdene said it had applied for initial construction permits and expected to make a formal construction decision in early 2022.

"Although the ongoing COVID situation and the onset of the winter season require us to approach the start of construction with caution, we are laying the groundwork for full construction in 2022," president and CEO Peter Akerley said.

He was increasingly confident the project would be "the anchor of a multimillion-ounce gold district", citing recent high-grade discoveries at its Dark Horse and Ulaan prospects.

A feasibility study last year estimated average annual production of 63,500 ounces of gold over seven years at a head grade of 3.71g/t gold.

It put initial capex at US$59 million, the after-tax NPV5 at $100 million and IRR at 42%, using a $1,400/oz gold price.

The company had C$5 million in cash in September, then completed a US$5 million offering in October as part of its cross-listing on the Mongolian stock exchange.

Its Toronto-listed shares (TSX: ERD) closed up 8.4% yesterday to C45c, up almost 5% year-to-date, valuing it at $132 million (US$104 million).