Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the Company) is pleased to update on metallurgical testwork for the Kharmagtai Project in Mongolia, being developed with the Company's joint venture partner Zijin Mining Group Co., Ltd. (Zijin).
Oxide leach recovery results demonstrate material progress towards one of the multiple uplift scenarios defined in the Kharmagtai Scoping Study1 , with value add likely; reducing mining strip and generating earlier operating cashflows for the Kharmagtai PreFeasibility Study (PFS), in addition to sulphide flotation processing of the main mineralised orebody. Upscaled column leach tests, as well as heap leach engineering design work are in progress
Highlights Recent column leaching tests completed on the mineralised oxide portion of the Kharmagtai Mineral Resource Estimate (MRE) delivered promising metallurgical extraction, peaking at 93% copper and 46% gold. Successful extraction occurred over 8-week leach duration, using sample head grade of 0.29% Cu and 0.42g/t Au, at a coarse 6mm particle size. MRE totalling approximately 1.3Bt includes 52Mt oxide material, primarily in the top 20m from surface. Additional surface oxide material sits outside the 2023 MRE, representing upside for future leach operations. The 2022 PEA concentrated solely on sulphide material processing, with oxide material classified as pre-stripped waste and ascribed negative value. The PFS, firmly tracking to budget and schedule, is investigating the transformation of all or part of this PEA liability into an asset, through leaching. Oxide processing flow sheet anticipates three stages of leaching, using proprietary, commercially proven techniques used in global operations including Australia, and licensed through DraslovkaMining Process Solutions (DMPS). It comprises acid leach to recover and remove cyanide soluble copper, followed by GlyCatTM, which involves a glycine leach to neutralise acid, followed by cyanide leach to recover gold and silver. Internal review of these results has given good confidence to proceed with next commercialisation phase of large-scale column leach testing. This will enable delivery of the final leach process and engineering design, to PFS confidence level. Next results expected between June and July 2024
Xanadu's Executive Chairman & Managing Director, Colin Moorhead said: 'We talked about oxide leaching as a major uplift opportunity in our Scoping Study, and these results have made significant inroads to proving up its viability for commercialised processing, to generate significant early cash. Decision to accelerate this is also made possible given it is surface material that will need to be excavated prior to accessing the main mineralised sulphide deposits. Instead of turning left to the waste dump, our goal is to turn right and place it on a leach pad, where it can turn a negative into a net positive during the early years of Kharmagtai operations; a double benefit for project economics. With continued successful leaching testwork, along with process and engineering design, we expect to deliver oxide heap leaching into the PFS base case and drive real value uplift for all stakeholders.'
Samples were collected from core drilled at Stockwork Hill, White Hill, Copper Hill and Golden Eagle 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 sample number (between 1 and 12), followed by crushing and grinding to particle sizes ranging between 3mm and 12mm. Each split was rotary split and homogenised for head analysis and sub-samples taken for testwork. Head assays for Au, Silver (Ag) & Cu were conducted by fire assay for each sample. Prior to leach testwork, samples were cured in 10kg/t sulfuric acid for 24 hours to improve copper extraction
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.
Contact:
Colin Moorhead
Executive Chairman & Managing Director
Tel: +61 2 8280 7497
Email: colin.moorhead@xanadumines.com
XANADU MINES LIMITED 
