Xanadu Mines Drills for Water Security at Kharmagtai Copper-Gold Project

Xanadu Mines Ltd (ASX: XAM, TSX: XAM) has restarted its water exploration program at the world-class Kharmagtai copper-gold project in Mongolia.

This critical step supports the ongoing Pre-Feasibility Study (PFS) by ensuring a sustainable water supply for future operations.

Water plays a vital role in mining processes, and securing a reliable source is crucial for Kharmagtai’s success in the South Gobi.

The PFS aims to maximize water recycling through innovative practices like efficient processing and thickened tailings. Initial estimates suggest a requirement of 200 litres per second for a processing rate of 15 million tonnes per annum (Mtpa).

Drilling for a Sustainable Future

Following a winter hiatus, two diamond drill rigs are now actively exploring potential water sources. The program focuses on two main areas:

  • Geophysical Investigation: Utilizing technology to map underground water resources.
  • Monitoring and Production Bores: Installing and testing boreholes to assess water quality, quantity, and flow rates.

The program is expected to be completed in May 2024, delivering data for 18 monitoring bores and four production bores.

This information will be incorporated into a comprehensive water balance plan for the final PFS design, which envisions a processing capacity of up to 40 Mtpa.

Giant Deposit with Global Significance

Located in Mongolia’s South Gobi region, Kharmagtai ranks among the world’s largest undeveloped copper-gold deposits. It boasts a resource of 1.3 billion tonnes at 0.3% copper and 0.2 g/t gold, containing approximately 3.4 million tonnes of copper and 8.4 million ounces of gold.

Notably, a high-grade zone holds 125 million tonnes at a promising 0.75% copper equivalent.

Strategic Partnership with Industry Leader

Xanadu is the operator of the 50-50 joint venture with Zijin Mining Group, the world’s sixth-largest metals mining company.

Zijin brings extensive experience with a production record of 877,000 tonnes of copper and 1.8 million tonnes of gold in 2022. Their expertise strengthens Kharmagtai’s potential to become a major copper-gold mine in Mongolia.

Colin Moorhead, Xanadu’s Executive Chairman and Managing Director, commented:

“Resuming the water drilling program demonstrates our commitment to Kharmagtai’s responsible development.

We are confident this program will confirm a sufficient water supply for the project, paving the way for its future success as a cornerstone copper-gold mine in Mongolia’s South Gobi region.”

Next Steps: Paving the Way for Production

Following the PFS, Xanadu plans to complete the full delineation and registration of production reserves in the first half of 2025. This step is critical for securing the final mining permit and progressing towards mine development.

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