Name of the Project
Kharmagtai copper/gold project.

Location
Mongolia.

Project Owner/s
Xanadu Mines.

Project Description
A scoping study has indicated the project’s potential to develop a low-strip-ratio openpit mining operation in an accelerated time frame, with rapid payback of the life-of-mine infrastructure for future openpit and underground mining operations.

The project is based on indicated and inferred mineral resources, comprising:

• 129.3-million tonnes in the indicated category grading 0.54% copper equivalent,
• 0.36% copper and 0.36 g/t gold; and
• inferred resources of 468.9-million tonnes grading 468.9-million tonnes grading 0.41 copper equivalent, 0.31% copper and 0.19 g/t gold.

The study has focused on min­ing sulphide mineralisation from three adjacent openpits – Stockwork Hill, Copper Hill and White Hill. Mining is based on bulk openpit min­ing techniques using standard drill-and-blast, load, haul, crusher feed by an owner opera­tor mining fleet. Metal recovery is esti­mated at about 86.6% copper and 70.9% gold.

The project includes the construction of a 20-million-tonne-a-year processing facility to process the mineralisation using a standard crushing/milling/flotation process plant, which will result in the production of a filtered copper/gold concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Initial capital expenditure is estimated $484-million.

Planned Start/End Date
Not stated.

Latest Developments
The scoping study has identified several opportunities for further upside that will improve project economics by extending the life of the openpit mine and targeting the high-grade Stockwork Hill and Copper Hill underground resources.

Xanadu plans to complete an updated mineral resource estimate and conduct infill drilling below the current resource to target the high-grade mineralisation at Stockwork Hill, while also completing conceptual mining studies to investigate the underground potential areas outside of the opencut mines.

Key Contracts and Suppliers
CSA Global (scoping study) and O2 Mining (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Xanadu Mines, tel +61 2 9547 4300 or email info@xanadumines.com.