Kharmagtai Water Supply Drilling Program Recommences

TORONTO, March 27, 2024 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the Company) is pleased to announce that the hydrological drilling program has re-commenced for the Kharmagtai Pre-Feasibility Study (PFS), which is being developed with the Company’s joint venture partner Zijin Mining Group Co., Ltd. (Zijin). Water supply is a core input to the study; a key driver to maximise processing throughput for the project.

Highlights

• A hydrological drill program has recommenced with two diamond drill rigs, following a pause during winter months.
• Field work comprises three key components, with oversight by SRK Consulting.
  • Geophysical investigation.
  • Monitoring bore, piezometer installations and testing.
  • Production bore, installation and testing.
• Approximately 3,700 metres of hydrology drilling will deliver 18 monitoring bores, and a further 1,350 metres of drilling will deliver 4 production bores, to be completed in May 2024. The final PFS water report is expected to be completed in July 2024.
• Data will be compiled into a hydrology database for use in site water balance for final PFS design, which is assessing ultimate growth of up to 40Mtpa processing throughput.
• Post-PFS, early works will include full drill-out and registration of production reserve during H1 CY2025, to support subsequent approval of final mining permit.

Xanadu’s Executive Chairman & Managing Director, Colin Moorhead said:

“Water is a critical input to the Kharmagtai PFS project, and the study team is aggressively driving this program forward, following a pause during the cold winter months. We are confident in this field program and aim to demonstrate that, to a PFS standard, there is an adequate supply of water for Kharmagtai, to ensure its successful delivery as Mongolia’s next major copper-gold mine in the south Gobi region of Mongolia.”

Hydrological Objectives
The hydrological program has six key objectives to provide water supply for Kharmagtai operations. The program will separately test and characterise individual aquifers to:

• Establish hydraulic parameters and groundwater heads.
• Initiate regular monitoring of groundwater levels.
• Examine responses in individual aquifers to external stresses (permeability tests).
• Establish regular monitoring of groundwater quality.
• Collect sufficient data to update the conceptual understanding and aquifer yield estimates.