COMPANY PROFILE
Company Overview & Strategy
Xanadu Mines Limited (XAM: ASX, TSX) is an exploration and development company operating in Mongolia. It provides investors exposure to globally significant, large-scale copper-gold discoveries and low-cost inventory growth.
Xanadu leverages its deep understanding of Mongolia, its people and demonstrated technical capabilities to discover and define critical minerals, focused on gold-rich copper deposits in Soth Gobi. Its growing portfolio of projects includes the flagship Kharmagtai project; positioned to be the next large scale, long-life, low-cost copper project in the world, to be supplying copper within four years.
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Key Project
Kharmagtai Copper-Gold Project
66.4km2 tenement located in Omnogovi Province, approximately 420km southeast of Ulaanbaatar. Hosted in the South Gobi porphyry copper province of Mongolia, which hosts majority of known porphyry deposits, including Oyu Tolgoi copper-gold operation (120km south), Tsagaan Suvarga porphyry copper-molybdenum development (170km east) and Xanadu’s 100% owned Red Mountain porphyry copper-gold exploration project (260km northeast). Beyond Kharmagtai & Red Mountain projects, Xanadu also recently secured earn-in right for up to 80% of Sant Tolgoi magmatic copper-nickel sulphide project (1100km west of Ulaanbaatar). Kharmagtai PFS Underway
- Uplift value via metallurgy, processing and mining technology studies.
- New upgraded Mineral Resource Estimate (MRE) delivered December 2023, with maiden Ore Reserve and PFS coming Q3 CY2024.
- Detailed geometallurgical, geotechnical, open-pit mining, and non-process infrastructure studies underway.
- Select single go-forward design.
- Progress de-risking of regulatory and social licence to operate.
- Enables decision to mine, with final engineering and construction commencing Q4 CY2024.
Investor Highlights
Large Resource
- 1.3Bt @ 0.27% Cu % 0.21g/t Au, containing 3.4Mt copper & 8.5Moz gold, and including higher-grade zone of >125Mt @ 0.75% CuEq.
- Resource still open at depth & along strike.
- High-grade bornite intercepts already discovered outside the Resource, plus step-out drilling continues down-plunge.
High Quality Project
- 2022 Scoping Study / PEA delivers US$630M NPV8%, 4yr payback & 20% IRR.
- 15Mtpa ore throughput initially, expanding to 30Mtpa post payback.
- First quartile AISC of US$1.02/lb Cu for first five years.
PFS is Founded
- US$35M completes the Pre-Feasibility Study (PFS) & funds discovery exploration, followed by potential final investment decision.
- Strategic partnership with Zijin Mining Group:
Zijin’s total investment is approximately A$64M, with about A$12.73M in XAM shares and US$35M directly into Kharmagtai.
Xanadu remains operator of the Kharmagtai joint venture (JV) with 18-month plan to complete the PFS. Post this, Zijin becomes the operator, with a focus towards achieving commercial production.
Significant Resource Upside (Horizon 1) New Upgraded Kharmagtai MRE delivered
- Open-pit mineralisation classified as 63% Indicated Resource, providing solid base for PFS and maiden Ore Reserve.
- 2023 MRE contains additional 58,259m diamond drilling since 2021 MRE.
- 3D geological model provides both robust framework for MRE update, and allows us to better predict mineralised extensions of deposits in advance of drilling.
- All six deposits within the updated Kharmagtai MRE are open and require additional drilling to determine deposit boundaries.
Drilling for New Discoveries at Kharmagai (Horizon 2) Aggressive growth & discovery drilling underway
- >5 porphyry clusters identified across the lease; high priority targets ranked and will be drill tested over next 12 months.
- Geochemical, geological and geophysical data indicate the Kharmagtai MRE (+1.3Bt) as the shallow surface expression of a much larger porphyry system.
- 24,000m discovery exploration programme underway, with three diamond drill rigs targeting.