Increase in Kharmagtai Resource

Xanadu Mines Ltd.
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Xanadu Mines Ltd.
Xanadu Mines Ltd.

TORONTO, Aug. 21, 2024 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the Company) is pleased to report an increase in the Mineral Resource Estimate (Resource, Mineral Resource Estimate or MRE) for its flagship copper-gold project at Kharmagtai, in the South Gobi region of Mongolia (Figure 1 and Table 1). The updated Resource increases contained copper metal by 14% or 463kt Cu and contained gold by 9% or 764k Oz Au and is largely driven by updating the resource reporting criteria to reflect pit-shells generated in the pre-feasibility study (PFS) in conjunction with re-estimation of the underlying models to include 7,300m of new drilling completed in six holes at White Hill and five diamond drill holes at Golden Eagle.

Highlights

  • Significant increase in Kharmagtai Resource from 3.4Mt to 3.8Mt Cu and from 8.5Moz to 9.3Moz Au contained metal, a 463Kt increase in contained copper (Cu) and 764Koz increase in contained gold (Au).

  • A small increase of approximately 123kt of contained copper and 156koz of contained gold arose from an update of the underlying models to incorporate new drilling subsequent to the last MRE update (11 holes for approximately 7300m). The Competent Person also made some minor adjustments to classifications as part of this update.

  • The balance of the change was driven by reporting the Mineral Resource falling within the revenue factor 1.4 PFS pit optimisation shells to the notional open pit cut-off grade of 0.2% CuEq, with material falling outside those shells reported to the notional mass underground cut-off of 0.3% CuEq resulting a net increase of material being reported at the lower cut-off. The previous approach used subjectively derived flat relative levels to define potentially open pit resources from underground (refer Figure 3).

Xanadu’s Executive Chairman and Managing Director, Mr Colin Moorhead, said “This update reflects and is consistent with the final model informing The Kharmagtai PFS, which is on track for delivery in the current quarter. We are keeping all planned infrastructure outside of the revenue factor 1.4 pit-shells to ensure sufficient flexibility for the open pits to grow in the future. There is therefore a reasonable expectation that mineralisation falling within those pits may eventually be extracted by open pit mining and it is appropriate that this Mineral Resource is reported to cut-off grades that are consistent with this. It is also very pleasing to see underlying resource growth driven by the recent discovery of a zone of higher-grade copper and gold mineralisation at the White Hill, which clearly remains open at depth and supports our exploration model targeting potential underground opportunities beyond the scope of the PFS.”

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