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Xanadu Mines Ltd

Xanadu Mines commences drilling to boost project economics

The company sees significant potential to expand the current JORC resource.

The Kharmagtai District showing location of the main deposits (Stockwork Hill, White Hill, Copper Hill) and the new Zaraa discovery
The Stockwork Hill, White Hill and Copper Hill deposits are the initial focus of drilling

Xanadu Mines Ltd (ASX:XAM) has commenced infill and resource definition drilling at its Kharmagtai Copper Gold Project in the South Gobi region of Mongolia.

Drilling is designed to significantly increase the JORC resource estimate in order to support project development.

The updated resource will be used to complete a preliminary economic assessment (PEA), expected to be released early in the December quarter.

READ: Xanadu Mines’ drill result brings Zaraa copper-gold deposit closer to open pit range

Xanadu’s managing director and CEO Dr Andrew Stewart said: “Following the very significant discovery of the fourth porphyry centre at Zaraa, we believe the Kharmagtai project is approaching a near-term development opportunity and it’s now time to take the Kharmagtai project to the next stage.

“Our number one objective at Kharmagtai is to fast-track resource drilling designed to significantly upgrade the Kharmagtai Mineral Resource estimate and to complete a preliminary economic assessment (PEA) of a very low strip ratio, higher grade open pit ‘starter’ project contained within a larger resource.

“I am confident that Kharmagtai will further improve its status as the premier large-scale undeveloped copper-gold project in Asia.”

Xanadu’s focus is to maximise the development potential of the Kharmagtai deposit in the shortest possible time frame. 

Potential of recent Zaraa discovery being evaluated

Drilling and the PEA are focused on the three main deposits – Copper Hill, White hill and Stockwork Hill.

The fourth deposit and recent discovery, Zaraa, is being assessed in parallel with the drilling and related development plan.

The objective at Zaraa is to demonstrate that this large-scale porphyry has both open pit and underground potential.

Quick facts: Xanadu Mines Ltd

Price: $0.06

Market: ASX
Market Cap: $39.93 m
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