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Xanadu Mines Ltd

Xanadu Mines reveals major resource upgrade for Kharmagtai

This interim resource update will be used for an open-pit scoping study on a starter project.

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The scoping study is expected to be released this quarter

Xanadu Mines Ltd (ASX:XAM) has increased copper tonnages by 400% and gold by 249% at its Kharmagtai Project in Mongolia’s South Gobi region.

The interim upgrade to the Kharmagtai resource estimate results in a total of 1.936 million tonnes of copper and 4.311 million ounces of gold.

READ: Xanadu Mines to list today on the Toronto Stock Exchange

Xanadu’s managing director and CEO Dr Andrew Stewart said: “With a 400% increase in contained copper, we are confident that the upcoming scoping study will show a financially robust open-pit starter project that will pave the way for Kharmagtai to develop into another high-quality Mongolian mining operation.

“Xanadu has entered an exciting period of cost-effective discovery and growth.

“Since acquiring the Kharmagtai project, we have been able to discover copper at a cost of less than 1c a pound, which is well below the global average of 4-7cents per pound.

Optimistic that resource can be grown further

“We are now in the privileged position of controlling a large exploration district with outstanding potential.

“I'm highly optimistic that we will continue to grow the resource base at Kharmagtai where the existing Resource remains open both along strike and at depth.

Addition of resources from Zaraa discovery still to come

“With the discovery of Zaraa and mineralisation intersected down to 1,200 vertical metres and still open, we believe there is an opportunity for a very large-scale system.

“The addition of Zaraa to the global resource base should have a positive impact on the overall scale and grade.

“We are now thinking about how big the mineral endowment could be at Kharmagtai and what future production it could sustain.”

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

Zaraa is the fourth and most recent deposit to be discovered within the Kharmagtai project.

This interim resource update is specifically designed to support a smaller-scale high-grade open pit scoping study for the three existing resources at Kharmagtai.

The focus, once this work is completed, will be to add the new discoveries of Zaraa and White Hill West to the global resource base and explore the many opportunities identified by the interim resource update.

Quick facts: Xanadu Mines Ltd

Price: $0.06

Market: ASX
Market Cap: $42.68 m
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