Kharmagtai Project Update
October 02 2024 - 6:00AM
Xanadu Mines Ltd (ASX: XAM, TSX: XAM)
(
Xanadu or the
Company) is
pleased to provide an update on its flagship Kharmagtai copper-gold
project, in the South Gobi region of Mongolia. The Pre-Feasibility
Study (
PFS) is nearing completion, operatorship
transition to Zijin Mining Group Co (
Zijin) is in
progress, with planning and funding discussions underway for the
next stage of development.
Highlights
-
The Kharmagtai PFS is in final stages of technical review and
evaluation.
-
Xanadu has taken extra weeks to complete final mine design and
independent reviews to the highest standard. Public announcement of
results expected in mid-October 2024.
-
Xanadu remains accountable for PFS delivery to Australian and
Canadian standards
-
PFS delivery will be achieved within the funding provided by
Zijin’s initial US$35m investment
-
Operator Transition underway as previously communicated, having
commenced on 10 September per the Joint Venture
(JV) Shareholders Agreement.
-
General Manager and Chair of Khuiten Metals JV Board now Zijin’s
nominees.
-
Planning underway for a Bankable Feasibility Study
(FS).
-
Xanadu is in discussions with potential funding sources and other
interested parties via its advisers Bacchus Capital and
Jefferies.
Xanadu’s Executive Chairman and Managing Director, Mr Colin
Moorhead, said,
“The Kharmagtai PFS is coming together and will
demonstrate its potential as a large-scale, high value copper-gold
mine. We have taken additional time to ensure final work and
technical reviews are at our expected standard, which is not
unusual for major projects of this scale and complexity. We look
forward to publishing the study outcomes in mid-October.
Importantly, this outcome has been achieved within the funding
provided by Zijin’s initial US$35m investment.
Meanwhile the transition of operatorship from
Xanadu to Zijin commenced on 10 September as per our JV
Shareholders Agreement, and the teams are working together now to
make sure we have a smooth transition structured in the best
interests of the project. Xanadu continues to work with its
advisers Bacchus Capital and Jefferies to assess funding options
for its share of the next stage of development and other potential
third-party interest.
In parallel with PFS finalisation, the new,
Zijin nominated GM is focused on developing the Feasibility Study
plan and budget, which will require Xanadu approval. Subject to
approval and funding, in 2025 Kharmagtai will launch into the final
stages of pre-construction approvals, permitting and ultimately,
development.”
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.
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 |
Spencer
ColeChief Financial & Development Officer E:
spencer.cole@xanadumines.com |
|
|
This Announcement was authorised for release by
Xanadu’s Chair and Managing Director.
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.
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