Xanadu Mines (ASX:XAM) Delivers PFS for Kharmagtai Project and Completes $7.5M Equity Placement
Operational Achievements
Xanadu Mines released a Pre-Feasibility Study (PFS) and Maiden Ore Reserve for the Kharmagtai Copper and Gold Project, confirming it as a world-class, low-cost, long-life mine. Operatorship transitioned to joint venture partner Zijin Mining, which is planning a Bankable Feasibility Study (BFS) starting in the March Quarter.
Financial Performance
The company completed an equity placement, raising $7.5 million through the issuance of 136.5 million new shares at $0.055 each. This included 26.5 million shares to Zijin Mining to maintain its pro-rata holding. Xanadu Mines holds A$6.2 million in cash as of 31 December 2024, with an additional $1.46 million received in January 2025.
Exploration Progress
Exploration activities at the Sant Tolgoi Copper-Nickel Project progressed, with high-grade samples up to 2.1% Cu. Detailed mapping and geophysics have defined four high-priority drill targets, with follow-up drilling set to commence in Q2 2025.
Executive Comments
Executive Chairman & Managing Director Colin Moorhead stated, “The December Quarter was a very significant one for Xanadu as The Company fulfilled its commitments to our Joint Venture with Zijin by delivering a high quality, western standard prefeasibility study for the Kharmagtai Project. This PFS describes a globally significant mine that produces on average 75 thousand tonnes of copper and 165 thousand ounces of gold metal per annum over a mine life of 29 years. Delivery of the PFS also triggered a change of operatorship of the JV from Xanadu to Zijin, which was completed smoothly during the quarter. As operator, Zijin are now planning the next stage of work which will target a final investment decision to construct Mongolia’s next big copper mine, a project that should benefit all stakeholders. Xanadu is proud of its role in progressing Kharmagtai to this point, and The Company is now focused on determining the best way forward for our shareholders. The results from our first pass exploration at Sant Tolgoi were quite encouraging and our exploration geologists are now busy planning follow up drilling that The Company expects to commence in the spring.”
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