Xanadu Mines has begun a massive 30,000m, four-rig infill diamond drill campaign at its Kharmagtai copper-gold project in Mongolia, with results set to support the company’s upcoming prefeasibility study.
The aim of the exploration program is to update the current open-pit mineral resource areas to an indicated category and deliver a maiden ore reserve estimate for the operation.
Kharmagtai has a current mineral resource estimate identified at a hulking 1.1 billion tonnes for three million tonnes of contained copper and eight million ounces of gold. Based on Xanadu’s scoping study predictions for the first five years of production, Kharmagtai shows a diminutive strip ratio of just 0.9 to 1 and an average milled copper grade of 0.29 per cent and the company expects to produce an average of 37,000 tonnes of copper per year.
Management expects to provide an updated mineral resource before the end of this year while the prefeasibility study is due to be completed during the second half of next year.
Metallurgical studies are also underway with Xanadu investigating sulphide flotation for the bulk of the orebody, ore comminution, gold deportment and oxide leaching testwork. The key objective is to explore opportunities to increase recoveries, optimise crushing and grinding and to deliver the most economic ore processing flowsheet.
The extensive comminution test program is designed to identify the crushing and grinding characteristics of the Kharmagtai mineralisation, including power consumption requirements in addition to optimum crushing and grinding technology. Gold deportment studies aim to outline the location and grain size of gold within each of the mineralisation styles at the site to maximise gold and silver recovery.
Xanadu Mines chairman and managing director Colin Moorhead said: “The Kharmagtai joint venture is off to a flying start with infill and exploration diamond drilling well underway, targeting infill, near mine extension and discovery exploration. We have four rigs executing ~30,000-metres of diamond drilling designed to upgrade, improve and grow the large Kharmagtai open-pit resource, supporting delivery of our PFS and a Maiden Ore Reserve.”
The company says high-grade mineralisation at Kharmagtai begins at surface with the potential to establish multiple open pits and lead to future underground development.
In addition to the infill program, exploration drilling is continuing at Kharmagtai with one diamond rig dedicated to targeting new sources of shallow high-grade open pit potential and deeper high-grade sulphide targets across the mining lease.
Just last month, Xanadu completed two phases of its strategic partnership with Chinese copper giant Zijin Mining, giving it access to funding for exploration.
The deal saw Zijin invest US$35 million (AU$52 million), funds which will also be used to complete the Kharmagtai prefeasibility study. A 50-50 joint venture has been created between the two partners at a project level, with Xanadu the operator on the ground.
The partnership has allocated 18 months to knock over its PFS. An earlier scoping study identified a number of upside opportunities which could materially upgrade the economics of the project.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
