Xanadu Mines Ltd (ASX: XAM, TSX: XAM)
(
Xanadu, XAM or the
Company) is
pleased to provide an update on metallurgical test work for the
Kharmagtai Project in Mongolia, being developed with the Company’s
joint venture partner
Zijin Mining Group Co., Ltd.
(Zijin). The sulphide rougher recovery results represent a
very positive technical and economic outcome for the Kharmagtai
Pre-Feasibility Study (
PFS). Next stage cleaner
recovery and oxide leach test work continues to progress to plan.
Highlights
- PFS stage
metallurgical test work completed for sulphide rougher process
recoveries.
- Rougher
flotation tests delivered metallurgical recoveries up to
98% copper and 95% gold, at head grades up to 1.6% Cu and
2.0g/t Au at P80 grind size of 150 micron
(µm).
- These are
in line with or better than Scoping Study1 assumptions and indicate
potential value uplift in final PFS recoveries.
- Grind
size selected at 150 µm for Stage 1 (15Mtpa in Scoping Study) and
212 µm for Stage 2 (30Mtpa in Scoping Study), following trade-off
studies by DRA Global. Coarse particle flotation remains under
investigation to further optimise Stage 2 grind size.
- Process
flowsheet includes conventional comminution, followed by rougher
flotation, then regrinding and three stages of cleaning to produce
a clean concentrate.
- Next
stage regrind & cleaner flotation underway, targeting a balance
between concentrate grade and recovery. Results expected in May or
June 2024.
Xanadu’s Executive Chairman & Managing Director, Colin
Moorhead said:
“Strong sulphide rougher flotation results were
expected given the clean mineralogy of the deposits at Kharmagtai,
and it is very pleasing to have this confirmed here. These results
are only part of our metallurgical test plan, and we look forward
to future announcements including cleaner flotation and an even
larger potential value uplift from our oxide leach program being
investigated by MPS labs in Perth.”
Metallurgical Recoveries
The rougher flotation test program was conducted
at ALS laboratory in Perth. It included head grade analysis and
rougher flotation recovery test work on 26 samples taken from
varying deposits, depths, sulphide and alteration types, using a
150 µm grind size.
Results are shown in Table 1
and demonstrate achievement of generally high rougher flotation
recoveries in both copper and gold. Copper head grade versus copper
recovery is shown in Figure 1.
Table 1: Rougher Flotation Recovery
Results
Sample ID2 |
Drill HoleNumber |
From (m) |
To (m) |
CuHead Grade (%) |
AuHead Grade(g/t) |
Cu Recovery(%) |
Au Recovery(%) |
CHCOM_001 |
336 |
50 |
60 |
0.38 |
0.14 |
80.9 |
76.0 |
CHCOM_002 |
416 |
150 |
160 |
0.82 |
1.96 |
94.6 |
89.7 |
CHCOM_003 |
434 |
67 |
74 |
0.22 |
0.06 |
88.3 |
89.1 |
SHCOM_001 |
250 |
220 |
230 |
0.59 |
0.88 |
93.2 |
93.6 |
SHCOM_002 |
263 |
288 |
298 |
0.59 |
1.67 |
90.2 |
86.5 |
SHCOM_003 |
279 |
336 |
346 |
0.51 |
0.12 |
89.3 |
90.9 |
SHCOM_005 |
343 |
180 |
190 |
0.23 |
0.13 |
89.2 |
79.2 |
SHCOM_006 |
346 |
364 |
374 |
0.15 |
0.21 |
77.1 |
na |
SHCOM_010 |
347 |
502 |
512 |
0.23 |
0.19 |
79.1 |
51.5 |
SHCOM_011 |
347 |
170 |
|
0.82 |
0.95 |
95.8 |
90.3 |
SHCOM_012 |
359 |
200 |
210 |
0.45 |
0.06 |
94.5 |
82.9 |
SHCOM_013 |
371 |
269 |
279 |
0.30 |
0.14 |
90.5 |
85.9 |
SHCOM_014 |
394 |
112 |
122 |
1.58 |
0.65 |
98.1 |
94.5 |
SHCOM_015 |
565 |
195 |
205 |
0.19 |
0.10 |
88.8 |
89.2 |
WHCOM_001 |
473 |
63 |
74 |
0.34 |
0.17 |
84.6 |
81.1 |
WHCOM_002 |
430 |
458 |
468 |
0.23 |
0.10 |
90.6 |
80.5 |
WHCOM_003 |
477 |
263 |
274 |
0.36 |
0.41 |
90.3 |
83.7 |
WHCOM_004 |
474 |
50 |
60 |
0.16 |
0.05 |
71.5 |
73.3 |
WHCOM_005 |
444 |
64 |
74 |
0.40 |
0.15 |
90.2 |
81.2 |
WHCOM_006 |
345 |
222 |
232 |
0.32 |
0.18 |
83.8 |
73.8 |
WHCOM_007 |
366 |
352 |
362 |
0.19 |
0.10 |
85.1 |
82.5 |
WHCOM_008 |
226 |
220 |
230 |
0.41 |
0.74 |
91.1 |
81.0 |
WHCOM_009 |
322 |
94 |
104 |
0.23 |
0.15 |
82.7 |
70.4 |
WHCOM_010 |
308 |
192 |
202 |
0.48 |
0.31 |
89.0 |
81.6 |
WHCOM_011 |
324 |
396 |
406 |
0.42 |
0.33 |
82.2 |
73.6 |
WHCOM_012 |
444 |
490 |
500 |
0.29 |
0.22 |
87.7 |
79.4 |
Figure 1. Copper Grade vs Rougher
Recovery
Grind Size Selection
The flowsheet considers conventional comminution
followed by rougher flotation, rougher concentrate is then reground
and followed by three stages of cleaning to produce a final
concentrate (Figure 2).
Figure 2. Conventional flowsheet
(simplified)
The rougher flotation step represents the key to
overall recovery, so comminution circuit grind size selection was
based on rougher recoveries at primary grinds of 80% passing 212
(coarser), 180, 150, and 106 (finer) µm.
DRA analysis concluded that 150 µm result is
optimum for Stage 1 (defined as 15Mtpa in the Scoping Study3) and
recommends 212 µm for Stage 2 (30Mtpa in the Scoping Study).
Rougher flotation results for the four grind
sizes tested are shown in Table 2. These tests
were conducted on a composite sample made up from the 26
variability samples with average assays of 0.41% Cu and 0.35g/t
Au.
Table 2. Flotation Rougher Recovery at
Grind Sizes
Grind Size
P80µm |
Test |
Mass % |
Cu % |
Au % |
106 |
JS5800 |
6.1 |
92.4 |
NA |
150 |
JS5793 |
6.8 |
90.0 |
NA |
180 |
JS5801 |
7.7 |
88.4 |
82.5 |
212 |
JS5802 |
7.8 |
85.8 |
83.2 |
Copper recovery to the rougher concentrate
decreased with increasing grind size (coarser) as would be
expected. Recovery versus grind size is shown in Figure
3.
Figure 3. Copper Rougher Recovery versus
Grind Size
Flotation Sample Selection and
Preparation
Samples were collected from core drilled at
Stockwork Hill, White Hill and Copper Hill deposits at the
Kharmagtai project, as being representative of each of these zones.
Sample preparation consisted of homogenising and splitting samples
“as received” into their respective composites and labelling by
deposit (CH = Copper Hill; SH = Stockwork Hill; WH = White Hill)
and by sample number (between 1 and 15 by deposit), followed by
crushing and grinding to 150 µm. Each split was rotary split and
homogenised for head analysis and sub-samples taken for test work.
Head assays for Cu and Au were conducted by fire assay for each
sample.
Metallurgical sample locations, zones and head assay grades are
detailed in Table 1. Drill hole sample collar
locations are detailed in Appendix 1 and
illustrated in Figure 3.
Figure 3: Collar locations for drill
holes sampled in metallurgical test work
Future Test Work
The next stage of the flowsheet after the
roughers is a regrind followed by three stages of cleaning to
produce a final concentrate. Cleaner test work is in progress,
focused on determining the optimal balance of concentrate grade and
recovery.
Sulphide flotation is a subset of the broader
Kharmagtai metallurgical test work program. The comprehensive
metallurgy program during the Pre-Feasibility Study includes
comminution properties of the mineralisation and alteration styles
at Kharmagtai to determine optimum flowsheet and generate inputs
for engineering design. This will also generate data to inform the
copper and gold recovery models, and allow operating costs
estimates to be calculated. Concentrate samples will be generated
for marketing studies as part of the broader metallurgy program.
This will be important for reinforcing concentrate saleability,
which we expect to be a clean and in-demand concentrate, in a very
tight concentrate market.
The broader metallurgical program also includes
oxide leach test work to determine the value and viability of using
a heap leach to capture value from partially oxidised, near-surface
pre-strip material which was treated as waste in the Scoping Study4
and identified as a significant uplift opportunity to turn
pre-strip costs into positive revenue for the Kharmagtai
project.
About Xanadu Mines
Xanadu is an ASX and TSX listed Exploration
company operating in Mongolia. We give investors exposure to
globally significant, large-scale copper-gold discoveries and
low-cost inventory growth. Xanadu maintains a portfolio of
exploration projects and remains one of the few junior explorers on
the ASX or TSX who jointly control a globally significant
copper-gold deposit in our flagship Kharmagtai project. Xanadu is
the Operator of a 50-50 JV with Zijin Mining Group in Khuiten
Metals Pte Ltd, which controls 76.5% of the Kharmagtai project.
For further information on Xanadu, please visit:
www.xanadumines.com or contact:
Colin MoorheadExecutive Chairman & Managing
DirectorE: colin.moorhead@xanadumines.com P: +61 2 8280 7497
This Announcement was authorised for release by
Xanadu’s Executive Chair & Managing Director.
Appendix 1: Metallurgical Sample
Composition & Location
Table 1: Drill hole sample details for
rougher flotation test work
Hole ID |
Prospect |
East |
North |
RL |
Azimuth (°) |
Inc (°) |
Depth (m) |
KHDDH250 |
Stockwork Hill |
592456 |
4877956 |
1290 |
180 |
-55 |
351.8 |
KHDDH263 |
Stockwork Hill |
592636 |
4877991 |
1287 |
180 |
-75 |
814.7 |
KHDDH276 |
Stockwork Hill |
592612 |
4877623 |
1288 |
0 |
-60 |
655.3 |
KHDDH277 |
Stockwork Hill |
592344 |
4877662 |
1291 |
0 |
-45 |
346.4 |
KHDDH279 |
Stockwork Hill |
592693 |
4877582 |
1288 |
0 |
-45 |
447.0 |
KHDDH343 |
Stockwork Hill |
592680 |
4877890 |
1285 |
180 |
-80 |
617.6 |
KHDDH346 |
Stockwork Hill |
592849 |
4877851 |
1283 |
175 |
-80 |
680.7 |
KHDDH347 |
Stockwork Hill |
592636 |
4877890 |
1285 |
175 |
-80 |
704.7 |
KHDDH359 |
Stockwork Hill |
592443 |
4878038 |
1291 |
180 |
-68 |
626.5 |
KHDDH371 |
Stockwork Hill |
592768 |
4877899 |
1283 |
180 |
-80 |
700.0 |
KHDDH372 |
Stockwork Hill |
592915 |
4877882 |
1281 |
180 |
-75 |
607.0 |
KHDDH394 |
Stockwork Hill |
592460 |
4877833 |
1288 |
100 |
-59 |
898.0 |
KHDDH527 |
Stockwork Hill |
592274 |
4877961 |
1293 |
178 |
-72 |
652.0 |
KHDDH565 |
Stockwork Hill |
593128 |
4877885 |
1280 |
233 |
-55 |
1609.4 |
KHDDH336 |
Copper Hill |
592647 |
4876448 |
1304 |
0 |
-60 |
158.6 |
KHDDH416 |
Copper Hill |
592698 |
4876440 |
1305 |
246 |
-50 |
437.0 |
KHDDH434 |
Copper Hill |
592554 |
4876456 |
1302 |
180 |
-62 |
366.2 |
KHDDH457 |
Copper Hill |
592388 |
4876430 |
1305 |
180 |
-65 |
454.9 |
KHDDH473 |
White Hill |
591894 |
4877307 |
1305 |
0 |
-60 |
300.6 |
KHDDH430 |
White Hill |
592097 |
4877422 |
1301 |
200 |
-60 |
851.7 |
KHDDH477 |
White Hill |
592100 |
4877097 |
1305 |
0 |
-60 |
438.8 |
KHDDH474 |
White Hill |
591900 |
4877496 |
1299 |
0 |
-60 |
250.1 |
KHDDH444 |
White Hill |
592159 |
4877565 |
1296 |
205 |
-60 |
1225.5 |
KHDDH345 |
White Hill |
592065 |
4877380 |
1305 |
176 |
-73 |
426.8 |
KHDDH366 |
White Hill |
591943 |
4877319 |
1309 |
5 |
-82 |
433.0 |
KHDDH226 |
White Hill |
592041 |
4877274 |
1310 |
90 |
-50 |
336.7 |
KHDDH322 |
White Hill |
592248 |
4876940 |
1302 |
0 |
-60 |
856.0 |
KHDDH308 |
White Hill |
591674 |
4877243 |
1305 |
90 |
-53 |
496.2 |
KHDDH324 |
White Hill |
592247 |
4877529 |
1294 |
180 |
-60 |
861.2 |
Appendix 2: Statements and
Disclaimers
Competent Person Statements
The information in this announcement that
relates to exploration results is based on information compiled by
Dr Andrew Stewart, who is responsible for the exploration data,
comments on exploration target sizes, QA/QC and geological
interpretation and information. Dr Stewart, who is an employee of
Xanadu and is a Member of the Australasian Institute of
Geoscientists, has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as the Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting
Exploration Results, Mineral Resources and Ore Reserves and the
National Instrument 43-101. Dr Stewart consents to the inclusion in
the report of the matters based on this information in the form and
context in which it appears.
The information in this Announcement that
relates to metallurgy and metallurgical test work has been reviewed
by Graham Brock, BSc (Eng), ARSM. Mr Brock is not an employee of
the Company but is employed as a contract consultant. Mr Brock is a
Fellow of the Australasian Institute of Mining and Metallurgy; he
has sufficient experience with the style of processing response and
type of deposit under consideration, and to the activities
undertaken, to qualify as a competent as defined in the 2012
Edition of the Australasian Code for Reporting Exploration Results,
Mineral Resources and Ore Reserves and the National Instrument
43-101. Mr Brock consents to the inclusion in this report of the
contained technical information in the form and context as it
appears.
Forward-Looking Statements
Certain statements contained in this
Announcement, including information as to the future financial or
operating performance of Xanadu and its projects may also include
statements which are ‘forward‐looking statements’ that may include,
amongst other things, statements regarding targets, estimates and
assumptions in respect of mineral reserves and mineral resources
and anticipated grades and recovery rates, production and prices,
recovery costs and results, capital expenditures and are or may be
based on assumptions and estimates related to future technical,
economic, market, political, social and other conditions. These
‘forward-looking statements’ are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
Xanadu, are inherently subject to significant technical, business,
economic, competitive, political and social uncertainties and
contingencies and involve known and unknown risks and uncertainties
that could cause actual events or results to differ materially from
estimated or anticipated events or results reflected in such
forward‐looking statements.
Xanadu disclaims any intent or obligation to
update publicly or release any revisions to any forward‐looking
statements, whether as a result of new information, future events,
circumstances or results or otherwise after the date of this
Announcement or to reflect the occurrence of unanticipated events,
other than required by the Corporations Act 2001 (Cth) and the
Listing Rules of the Australian Securities Exchange
(ASX) and Toronto Stock Exchange
(TSX). The words ‘believe’, ‘expect’,
‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’,
‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’,
‘schedule’ and similar expressions identify forward‐looking
statements.
All ‘forward‐looking statements’ made in this
Announcement are qualified by the foregoing cautionary statements.
Investors are cautioned that ‘forward‐looking statements’ are not
guarantee of future performance and accordingly investors are
cautioned not to put undue reliance on ‘forward‐looking statements’
due to the inherent uncertainty therein.
For further information please visit the Xanadu
Mines’ Website at www.xanadumines.com.
Appendix 3: Kharmagtai Table 1 (JORC
2012)
Set out below is Section 1 and Section 2 of
Table 1 under the JORC Code, 2012 Edition for the Kharmagtai
project. Data provided by Xanadu. This Table 1 updates the JORC
Table 1 disclosure dated 8 December 2023.
JORC TABLE 1 - SECTION 1 - SAMPLING
TECHNIQUES AND DATA
(Criteria in this section apply to all succeeding sections).
Criteria |
Commentary |
Sampling techniques |
- Representative ½
core samples were split from PQ, HQ & NQ diameter diamond drill
core on site using rock saws, on a routine 2m sample interval that
also honours lithological/intrusive contacts.
- The orientation
of the cut line is controlled using the core orientation line
ensuring uniformity of core splitting wherever the core has been
successfully oriented.
- Sample intervals
are defined and subsequently checked by geologists, and sample tags
are attached (stapled) to the plastic core trays for every sample
interval.
- Reverse
Circulation (RC) chip samples are ¼ splits from
one meter (1m) intervals using a 75%:25% riffle
splitter to obtain a 3kg sample
- RC samples are
uniform 2m samples formed from the combination of two ¼ split 1m
samples.
|
Drilling techniques |
- The Mineral
Resource Estimation has been based upon diamond drilling of PQ, HQ
and NQ diameters with both standard and triple tube core recovery
configurations, RC drilling and surface trenching with channel
sampling.
- All drill core
drilled by Xanadu has been oriented using the “Reflex Ace”
tool.
|
Drill sample recovery |
- Diamond drill
core recoveries were assessed using the standard industry (best)
practice which involves removing the core from core trays;
reassembling multiple core runs in a v-rail; measuring core lengths
with a tape measure, assessing recovery against core block depth
measurements and recording any measured core loss for each core
run.
- Diamond core
recoveries average 97% through mineralisation.
- Overall, core
quality is good, with minimal core loss. Where there is localised
faulting and or fracturing core recoveries decrease, however, this
is a very small percentage of the mineralised intersections.
- RC recoveries
are measured using whole weight of each 1m intercept measured
before splitting
- Analysis of
recovery results vs grade shows no significant trends that might
indicate sampling bias introduced by variable recovery in
fault/fracture zones.
|
Logging |
- All drill core
is geologically logged by well-trained geologists using a modified
“Anaconda-style” logging system methodology. The Anaconda method of
logging and mapping is specifically designed for porphyry Cu-Au
mineral systems and is entirely appropriate to support Mineral
Resource Estimation, mining and metallurgical studies.
- Logging of
lithology, alteration and mineralogy is intrinsically qualitative
in nature. However, the logging is subsequently supported by 4 Acid
ICP-MS (48 element) geochemistry and SWIR spectral mineralogy
(facilitating semi-quantitative/calculated mineralogical,
lithological and alteration classification) which is integrated
with the logging to improve cross section interpretation and 3D
geological model development.
- Drill core is
also systematically logged for both geotechnical features and
geological structures. Where drill core has been successfully
oriented, the orientation of structures and geotechnical features
are also routinely measured.
- Both wet and dry
core photos are taken after core has been logged and marked-up but
before drill core has been cut.
|
Sub-sampling techniques and sample preparation |
- All drill core
samples are ½ core splits from either PQ, HQ or NQ diameter cores.
A routine 2m sample interval is used, but this is varied locally to
honour lithological/intrusive contacts. The minimum allowed sample
length is 30cm.
- Core is
appropriately split (onsite) using diamond core saws with the cut
line routinely located relative to the core orientation line (where
present) to provide consistency of sample split selection.
- The diamond saws
are regularly flushed with water to minimize potential
contamination.
- A field
duplicate ¼ core sample is collected every 30th sample to ensure
the “representivity of the in-situ material collected”. The
performance of these field duplicates is routinely analysed as part
of Xanadu’s sample QC process.
- Routine sample
preparation and analyses of DDH samples were carried out by ALS
Mongolia LLC (ALS Mongolia), who operates an
independent sample preparation and analytical laboratory in
Ulaanbaatar.
- All samples were
prepared to meet standard quality control procedures as follows:
Crushed to 75% passing 2mm, split to 1kg, pulverised to 85% passing
200 mesh (75 microns) and split to 150g sample pulp.
- ALS Mongolia
Geochemistry labs quality management system is certified to ISO
9001:2008.
- The sample
support (sub-sample mass and comminution) is appropriate for the
grainsize and Cu-Au distribution of the porphyry Cu-Au
mineralization and associated host rocks.
- Sample
preparation at ALS Perth Labs consisted of homogenising and
splitting samples “as received” into their respective composites
and labelling them by deposit and as “Sample 1” through to “Sample
15”. Each split was then rotary split and homogenised for head
analysis and sub-samples were taken for testwork.
|
Quality of assay data and laboratory tests |
- All samples were
routinely assayed by ALS Mongolia for gold.
- Au is determined
using a 25g fire assay fusion, cupelled to obtain a bead, and
digested with Aqua Regia, followed by an atomic absorption
spectroscopy (AAS) finish, with a lower detection
(LDL) of 0.01 ppm.
- All samples were
also submitted to ALS Mongolia for the 48-element package ME-ICP61
using a four-acid digest (considered to be an effective total
digest for the elements relevant to the Mineral Resource Estimate
(MRE)). Where copper is over-range (>1% Cu), it
is analysed by a second analytical technique (Cu-OG62), which has a
higher upper detection limit (UDL) of 5%
copper.
- Quality
assurance has been managed by insertion of appropriate Standards
(1:30 samples – suitable Ore Research Pty Ltd certified standards),
Blanks (1:30 samples), Duplicates (1:30 samples – ¼ core duplicate)
by XAM.
- Assay results
outside the optimal range for methods were re-analysed by
appropriate methods.
- Ore Research Pty
Ltd certified copper and gold standards have been implemented as a
part of QC procedures, as well as coarse and pulp blanks, and
certified matrix matched copper-gold standards.
- QC monitoring is
an active and ongoing processes on batch by batch basis by which
unacceptable results are re-assayed as soon as practicable.
- Prior to 2014:
Cu, Ag, Pb, Zn, As and Mo were routinely determined using a
three-acid-digestion of a 0.3g sub-sample followed by an AAS finish
(AAS21R) at SGS Mongolia. Samples were digested with nitric,
hydrochloric and perchloric acids to dryness before leaching with
hydrochloric acid to dissolve soluble salts and made to 15ml volume
with distilled water. The LDL for copper using this technique was
2ppm. Where copper was over-range (>1% Cu), it was analysed by a
second analytical technique (AAS22S), which has a higher upper
detection limit (UDL) of 5% copper. Gold analysis method was
essentially unchanged.
- Assays as part
of the rougher flotation metallurgical test work were carried out
at ALS, Perth. Gold and copper solid assays were determined using
Fire Assay followed by AAS. Solution assays were determined using
AAS.
|
Verification of sampling and assaying |
- All assay data
QA/QC is checked prior to loading into XAM’s Geobank data
base.
- The data is
managed by XAM geologists.
- The data base
and geological interpretation is managed by XAM.
- Check assays are
submitted to an umpire lab (SGS Mongolia) for duplicate
analysis.
- No twinned drill
holes exist.
- There have been
no adjustments to any of the assay data.
|
Location of data points |
- Diamond drill
holes have been surveyed with a differential global positioning
system (DGPS) to within 10cm accuracy.
- The grid system
used for the project is UTM WGS-84 Zone 48N
- Historically,
Eastman Kodak and Flexit electronic multi-shot downhole survey
tools have been used at Kharmagtai to collect down hole azimuth and
inclination information for the majority of the diamond drill
holes. Single shots were typically taken every 30m to 50m during
the drilling process, and a multi-shot survey with readings every
3-5m are conducted at the completion of the drill hole. As these
tools rely on the earth’s magnetic field to measure azimuth, there
is some localised interference/inaccuracy introduced by the
presence of magnetite in some parts of the Kharmagtai mineral
system. The extent of this interference cannot be quantified on a
reading-by-reading basis.
- More recently
(since September 2017), a north-seeking gyro has been employed by
the drilling crews on site (rented and operated by the drilling
contractor), providing accurate downhole orientation measurements
unaffected by magnetic effects. Xanadu have a permanent calibration
station setup for the gyro tool, which is routinely calibrated
every 2 weeks (calibration records are maintained and were
sighted)
- The project
Digital Terrain Model (DTM) is based on 1m
contours from satellite imagery with an accuracy of ±0.1 m.
|
Data spacing and distribution |
- Holes spacings
range from <50m spacings within the core of mineralization to
+500m spacings for exploration drilling. Hole spacings can be
determined using the sections and drill plans provided.
- Holes range from
vertical to an inclination of -60 degrees depending on the attitude
of the target and the drilling method.
- The data spacing
and distribution is sufficient to establish anomalism and targeting
for porphyry Cu-Au, tourmaline breccia and epithermal target
types.
- Holes have been
drilled to a maximum of 1,304m vertical depth.
- The data spacing
and distribution is sufficient to establish geological and grade
continuity, and to support the Mineral Resource
classification.
|
Orientation of data in relation to geological structure |
- Drilling is
conducted in a predominantly regular grid to allow unbiased
interpretation and targeting.
- Scissor
drilling, as well as some vertical and oblique drilling, has been
used in key mineralised zones to achieve unbiased sampling of
interpreted structures and mineralised zones, and in particular to
assist in constraining the geometry of the mineralised hydrothermal
tourmaline-sulphide breccia domains.
|
Sample security |
- Samples are
delivered from the drill rig to the core shed twice daily and are
never left unattended at the rig.
- Samples are
dispatched from site in locked boxes transported on XAM company
vehicles to ALS lab in Ulaanbaatar.
- Sample shipment
from Ulaanbaatar to ALS lab in Perth is dispatched in locked
barrels and transported via air freight.
- Sample shipment
receipt is signed off at the Laboratory with additional email
confirmation of receipt.
- Samples are then
stored at the lab and returned to a locked storage site.
|
Audits or reviews |
- Internal audits
of sampling techniques and data management are undertaken on a
regular basis, to ensure industry best practice is employed at all
times.
- External reviews
and audits have been conducted by the following groups:
- 2012: AMC
Consultants Pty Ltd. was engaged to conduct an Independent
Technical Report which reviewed drilling and sampling procedures.
It was concluded that sampling and data record was to an
appropriate standard.
- 2013: Mining
Associates Ltd. was engaged to conduct an Independent Technical
Report to review drilling, sampling techniques and QAQC. Methods
were found to conform to international best practice.
- 2018: CSA Global
reviewed the entire drilling, logging, sampling, sample shipping
and laboratory processes during the competent persons site visit
for the 2018 MRE and found the systems and adherence to protocols
to be to an appropriate standard.
|
JORC TABLE 1 - SECTION 2 - REPORTING OF
EXPLORATION RESULTS
(Criteria in this section apply to all succeeding sections).
Criteria |
Commentary |
Mineral tenement and
landtenure status |
- The Project comprises 2 Mining
Licences (MV-17129A Oyut Ulaan and (MV-17387A Kharmagtai):
- Xanadu now owns 90% of Vantage LLC,
the 100% owner of the Oyut Ulaan mining licence.
- The Kharmagtai mining license
MV-17387A is 100% owned by Oyut Ulaan LLC. Xanadu has an 85%
interest in Mongol Metals LLC, which has 90% interest in Oyut Ulaan
LLC. The remaining 10% in Oyut Ulaan LLC is owned by Quincunx (BVI)
Ltd (“Quincunx”).
- The Mongolian Minerals Law (2006)
and Mongolian Land Law (2002) govern exploration, mining and land
use rights for the project.
|
Exploration done
byother parties |
- Previous exploration at Kharmagtai
was conducted by Quincunx Ltd, Ivanhoe Mines Ltd and Turquoise Hill
Resources Ltd including extensive drilling, surface geochemistry,
geophysics, mapping.
- Previous exploration at Red
Mountain (Oyut Ulaan) was conducted by Ivanhoe Mines.
|
Geology |
- The mineralisation is characterised
as porphyry copper-gold type.
- Porphyry copper-gold deposits are
formed from magmatic hydrothermal fluids typically associated with
felsic intrusive stocks that have deposited metals as sulphides
both within the intrusive and the intruded host rocks. Quartz
stockwork veining is typically associated with sulphides occurring
both within the quartz veinlets and disseminated thought out the
wall rock. Porphyry deposits are typically large tonnage deposits
ranging from low to high grade and are generally mined by large
scale open pit or underground bulk mining methods. The deposits at
Kharmagtai are atypical in that they are associated with
intermediate intrusions of diorite to quartz diorite composition;
however, the deposits are in terms of contained gold significant,
and similar gold-rich porphyry deposits.
|
Drill holeInformation |
- Diamond drill holes are the
principal source of geological and grade data for the Project.
- See figures in this ASX/TSX
Announcement.
|
DataAggregation methods |
- The CSAMT data was converted into
2D line data using the Zonge CSAMT processing software and then
converted into 3D space using a UBC inversion process. Inversion
fit was acceptable, and error was generally low.
- A nominal cut-off of 0.1% CuEq is
used in copper dominant systems for identification of potentially
significant intercepts for reporting purposes. Higher grade
cut-offs are 0.3%, 0.6% and 1% CuEq.
- A nominal cut-off of 0.1g/t AuEq is
used in gold dominant systems like Golden Eagle for identification
of potentially significant intercepts for reporting purposes.
Higher grade cut-offs are 0.3g/t, 0.6g/t and 1g/t AuEq.
- Maximum contiguous dilution within
each intercept is 9m for 0.1%, 0.3%, 0.6% and 1% CuEq.
- Most of the reported intercepts are
shown in sufficient detail, including maxima and subintervals, to
allow the reader to make an assessment of the balance of high and
low grades in the intercept.
- Informing samples have been
composited to two metre lengths honouring the geological domains
and adjusted where necessary to ensure that no residual sample
lengths have been excluded (best fit).
The copper equivalent (CuEq) calculation
represents the total metal value for each metal, multiplied by the
conversion factor, summed and expressed in equivalent copper
percentage with a metallurgical recovery factor applied. The copper
equivalent calculation used is based off the CuEq calculation
defined by CSA Global in the 2018 Mineral Resource Upgrade.Copper
equivalent (CuEq) grade values were calculated
using the following formula:CuEq = Cu + Au * 0.62097 * 0.8235,Gold
Equivalent (AuEq) grade values were calculated
using the following formula:AuEq = Au + Cu / 0.62097 *
0.8235.Where:Cu - copper grade (%)Au - gold grade (g/t)0.62097 -
conversion factor (gold to copper)0.8235 - relative recovery of
gold to copper (82.35%)The copper equivalent formula was based on
the following parameters (prices are in USD):
- Copper price - 3.1 $/lb (or 6834
$/t)
- Gold
price - 1320
$/oz
- Copper recovery - 85%
- Gold recovery - 70%
- Relative recovery of gold to copper
= 70% / 85% = 82.35%.
|
Relationship between mineralisationon
widths and
interceptlengths |
- Mineralised structures are variable
in orientation, and therefore drill orientations have been adjusted
from place to place in order to allow intersection angles as close
as possible to true widths.
- Exploration results have been
reported as an interval with 'from' and 'to' stated in tables of
significant economic intercepts. Tables clearly indicate that true
widths will generally be narrower than those reported.
|
Diagrams |
- See figures in the body of this
ASX/TSX Announcement.
|
Balanced reporting |
- Resources have been reported at a
range of cut-off grades, above a minimum suitable for open pit
mining, and above a minimum suitable for underground mining.
|
Other substantiveExploration
data |
- Extensive work in this area has
been done and is reported separately.
|
FurtherWork |
- The mineralisation is open at depth
and along strike.
- Current estimates are restricted to
those expected to be reasonable for open pit mining. Limited
drilling below this depth (-300m RL) shows widths and grades
potentially suitable for underground extraction.
- Exploration on going.
|
JORC TABLE 1 - SECTION 3 - ESTIMATION
AND REPORTING OF MINERAL RESOURCES
Mineral Resources are not reported so this is
not applicable to this Announcement. Please refer to the Company’s
ASX Announcement dated 8 December 2023 for Xanadu’s most recent
reported Mineral Resource Estimate and applicable Table 1, Section
3.
JORC TABLE 1 - SECTION 4 - ESTIMATION
AND REPORTING OF ORE RESERVES
Ore Reserves are not reported so this is not
applicable to this Announcement.
_______________________
1 ASX/TSX Announcement 8 April 2022 – Scoping Study Kharmagtai
Copper-Gold Project2 Metallurgical Zones and Locations CH = Copper
Hill; SH = Stockwork Hill; WH = White Hill3 ASX/TSX Announcement 8
April 2022 – Scoping Study Kharmagtai Copper-Gold Project4 ASX/TSX
Announcement 8 April 2022 – Scoping Study Kharmagtai Copper-Gold
Project
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/1faef0f9-a86c-4ac8-8975-ddd9f208c570
https://www.globenewswire.com/NewsRoom/AttachmentNg/498b9adc-90e0-47df-9cdf-b580782e43bc
https://www.globenewswire.com/NewsRoom/AttachmentNg/6010901d-9a35-438c-a9d5-8657da2e300f
https://www.globenewswire.com/NewsRoom/AttachmentNg/f059f1d5-3000-4616-8051-5a6be5b16611
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