Xanadu Mines Boosts Kharmagtai Copper-Gold Resource Estimate in Mongolia
Xanadu Mines has announced a significant increase in the mineral resource estimate for its flagship Kharmagtai copper-gold project in Mongolia. The updated estimate reveals an additional 463,000 tonnes of contained copper and a 746,000-ounce increase in contained gold. This brings the total resource to 3.8 million tonnes of copper and 9.3 million ounces of gold.
The increase, driven by new drilling results at the White Hill deposit and a refined pit design as part of ongoing prefeasibility studies (PFS), represents a 14% rise in contained copper and a 9% rise in contained gold. The resource update was conducted by Spiers Geological Consultants (SGC), incorporating data from 7,300 meters of drilling across 11 holes at the White Hill and Golden Eagle deposits, along with adjustments to the refined resource model.
Xanadu Mines Executive Chairman and Managing Director Colin Moorhead emphasized the project's potential for further expansion, noting that White Hill remains open at depth, suggesting additional exploration opportunities beyond the current PFS scope. The discovery of a higher-grade copper and gold zone at White Hill has contributed significantly to the resource growth.
In 2022, Xanadu formed a strategic partnership with Chinese mining giant Zijin Mining Group, securing AU$64 million in funding, which includes the full funding required for the PFS and additional exploration. Under the deal, Zijin acquired a 19.99% stake in Xanadu and established a 50:50 joint venture for Kharmagtai, with an option for Zijin to fund construction or acquire further stakes in the project post-PFS.
Mongolia is home to some of the world’s most significant gold-copper deposits, including the renowned Oyu Tolgoi mine. While Kharmagtai’s resource may not yet match Oyu Tolgoi's massive scale, the project is rapidly shaping up to be a significant development in its own right, with further exploration potential and a PFS expected soon.
