The next Oyu Tolgoi? Xanadu Mines advancing copper-gold project in Mongolia with Zijin Mining
Colin Moorhead, executive chairman and managing director at Xanadu Mines (ASX:XAM), says Mongolia is one of the few places left where there is high prospectivity for not only copper and gold, but all sorts of forward-facing metals. He added that the country is relatively underexplored. It also has great infrastructure, and it is an emerging mining economy.
In early November Moorhead was interviewed by Kitco Mining at the International Mining and Resources Conference (IMARC 2023) in Sydney, Australia.
The company’s flagship is the Kharmagtai copper-gold project approximately 420 km southeast of Ulaanbaatar. It is within the South Gobi porphyry copper province, which hosts most of the known porphyry deposits in the South Gobi region of Mongolia, including the large Oyu Tolgoi copper-gold mine.
Xanadu’s team in Mongolia includes VP exploration Andy Stewart and chief geologist Matt Brown, both of whom worked for Ivanhoe Mines (TSX:IVN), Robert Friedland’s company.
In 2022 Xanadu did a deal with its largest shareholder, Chinese gold miner Zijin Mining, which put US$35 million into the Kharmagtai project to create a 50-50 joint venture. A prefeasibility study is due out next year.
With infill drilling complete, Moorhead said Xanadu will have a resource estimate out before Christmas that will inform all the mining engineering and process engineering. Metallurgical results will follow. The company is also doing exploration drilling, from which shareholders should expect news flow over the next few months.