Mongolia

Kharmagtai Project

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Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Copper
  • Gold
Mining Method
  • Truck & Shovel / Loader
Mine Life30 years (as of Jan 1, 2022)
ShapshotDuring the quarter ending 30 September 2023, Xanadu Mines Ltd. aggressively progressed the Pre-Feasibility program and Discovery Exploration activities at its Kharmagtai copper-gold project, funded by US$35 million cash from the Joint Venture with Zijin Mining Group Co., Ltd.

Kharmagtai Project current activity:
- Hydrological drilling program underway to support Water Reserve Studies; completion expected in Q2 CY2024.
- Infrastructure and Operating Studies progressing well, including Tailings Storage Facility (TSF) location and design, site General Arrangement (GA), Power Supply, and Operating Strategy, with majority of work to be completed by Q1 CY2024.
- Construction of new grid power connection and camp accommodation completed during the quarter. New core process facility proceeding on time and budget, with delivery on-track for Q4 CY2023.
- Mining and Process Engineering studies commence in Q4 CY2023.
- Kharmagtai PFS including maiden Ore Reserve on-track for Q3 CY2024.

Owners

SourceSource
CompanyInterestOwnership
Zijin Mining Group Co., Ltd 38.25 % Indirect
Xanadu Mines Ltd. 38.25 % Indirect
Khuiten Metals Pte. Ltd. effectively owns 76.5% of the Kharmagtai project, along with 13.5% minority holder Ganbayar Lkhagvasuren (an Executive Director at Xanadu), and 10.0% minority holder QGX Ltd.

On March 10, 2023, in addition to the Phase II Placement, Jinping (Singapore) Mining Pte. Ltd., an indirect wholly-owned subsidiary of Zijin Mining Group Co., Ltd. and Zijin also entered into a share subscription agreement with the Xanadu and Khuiten Metals Pte. Ltd., which indirectly holds 76.5% of the rights, title and interest in Xanadu’s flagship Kharmagtai Copper-Gold Project in Mongolia pursuant to which Jinping subscribed for 50% of the shares of Khuiten Metals in consideration of US$35 million. Jinping acquired the Khuiten Metals Shares on March 10, 2023.

Deposit type

  • Epithermal
  • Breccia pipe / Stockwork
  • Vein / narrow vein
  • Porphyry

Summary:

Kharmagtai consists of multiple co-genetic goldrich porphyry copper centres and tourmaline breccia pipes occurring within the Carboniferous Kharmagtai Igneous Complex. The Kharmagtai Igneous Complex consists of a series of intrusive bodies ranging between diorite through monzodiorite, quartz-monzodiorite to monzonite and granodiorite compositions.

There are three styles of mineralisation at Kharmagtai; porphyry style stock work Cu-Au mineralisation, tourmaline breccia style Cu-Au mineralisation and epithermal gold associated with carbonate base metal veins.

The Resource models are well understood and there is substantial upside potential to be realised by better understanding the economics of the deposit. As demonstrated in the images, significant volumes of mineralisation have been modelled that fall outside of the constraining wire frames on figures.

These parts of the model will be targeted for further investigation through economic studies to assess if more of this material can be brought into the Mineral Resource.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Copper Metal in concentrate M lbs 1103,307
Gold Metal in conc./ doré koz 1103,300

Operational metrics

Metrics
Annual processing rate 00
Stripping / waste ratio 00
Waste tonnes, LOM 000
Ore tonnes mined, LOM 000
Total tonnes mined, LOM 0000
Tonnes processed, LOM 000
* According to 2022 study.

Production Costs

CommodityUnitsAverage
Credits (by-product) Copper USD 000
All-in sustaining costs (AISC) Copper USD 000
All-in sustaining costs (AISC) Copper USD 0000000
Assumed price Copper USD 0
Assumed price Gold USD 0000
* According to 2022 study / presentation.
Net of By-Product.

Operating Costs

Currency2022
OP mining costs ($/t mined) USD 2.09 *  
OP mining costs ($/t milled) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2022 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

Source Source
Job TitleNamePhoneEmailProfileRef. Date
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