Xanadu Mines Ltd (ASX: $XAM) progresses oxide leach recovery at Kharmagtai

Xanadu Mines Ltd (ASX: $XAM) has provided an update on the encouraging oxide leach recovery for copper and gold at the Kharmagtai Project in Mongolia. Recent column leaching tests on the mineralised oxide portion of the Kharmagtai Mineral Resource Estimate delivered promising metallurgical extraction, peaking at 93% copper and 46% gold. 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.

Executive Commentary on Oxide Leach Recovery Progress

Xanadu's Executive Chairman & Managing Director, Colin Moorhead, expressed confidence in the progress made, stating, '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.'

Summary of Oxide Leach Recovery Progress

The recent progress in oxide leach recovery at Kharmagtai demonstrates a significant advancement towards one of the multiple uplift scenarios defined in the Kharmagtai Scoping Study. The successful extraction of copper and gold over an 8-week leach duration using proprietary techniques indicates the potential for earlier operating cashflows and reduction in mining strip. The PFS is investigating the transformation of oxide material, previously classified as pre-stripped waste, into an asset through leaching. With continued successful leaching testwork, the company expects to deliver oxide heap leaching into the PFS base case, driving real value uplift for all stakeholders. The next commercialization phase of large-scale column leach testing is expected to provide further insights, with results anticipated between June and July 2024. Xanadu's ambitions to generate significant early cash and turn a negative into a net positive during the early years of Kharmagtai operations reflect the company's commitment to maximizing the project's economic potential.