Xanadu planting seeds for 2025 Kharmagtai exploration

Xanadu Mines (ASX:XAM) has begun planning activities for its joint venture (JV) Kharmagtai Copper-Gold Project in Mongolia in 2025 once a Prefeasibility Study (PFS) being spearheaded by partner Zijin Mining Group (SHA:601899) is complete.

Xanadu Mines Executive Chairman and Managing Director Colin Moorhead says: “We are confident in this field program and aim to demonstrate that, to a PFS standard, there is an adequate supply of water for Kharmagtai, to ensure its successful delivery as Mongolia’s next major copper-gold mine in the south Gobi region of Mongolia.” 

Xanadu, which has a $99.52 million market capitalisation, says post-PFS, and during the final stage of development, the project will witness a ‘comprehensive’ drill, test, and construction program. 

This program is being designed to bring the project’s target water sources to a full production standard, which is required to register a Mongolian Production Reserve, for extraction during mine operations. 

To ensure Kharmagtai is ready to begin pre-stripping and ore mining in early 2027, the Mongolia Production Reserve is targeted for completion in the first half of 2025 to support mining permit approvals by end 2025. 

Execution of this future program is outside the scope of the PFS, however, planning for this program will be undertaken prior to starting early works. 

The company also announces it has resumed water supply hydrological drilling at Kharmagtai following a break during the winter months. Drilling has resumed with 2 drill rigs and comprises 3 key components being overlooked by SRK Consulting. 

The components include geophysical investigation, monitoring bore, piezometer installations and testing, and production bore, installation and testing. 

Water supply is a core input to the PFS; a key driver to maximise processing throughout for the project. 

About 3,700m of hydrology drilling will deliver 18 monitoring bores, and a further 1,350m will deliver 4 production bores to be completed in May 2024. The final PFS water report is expected to be completed in July this year. 

Data will be compiled into a hydrology database for use in site water balance for final PFS planning, which is assessing ultimate growth of up to 40 million-tonnes-per-annum processing throughput. 

Currently, Kharmagtai holds an existing water reserve of 69.1 litres per second, established in 2013 by mining giant Rio Tinto (ASX:RIO) in the ZUK basin directly adjacent to the project and within 6km of the existing exploration camp at its nearest point.  

Xanadu is an explorer actively operating in Mongolia, focused on ‘globally significant, large-scale’ copper-gold discoveries and low-cost inventory growth. 

Write to Adam Drought at Mining.com.au 

Images: Xanadu Mines
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.