MONGOLIAN-FOCUSED COPPER AND GOLD EXPLORER
EXPLORING COPPER
Committed to Mongolia’s vast mining potential, international porphyry copper-gold mines in the Cole, Chief Development Officer, and Colin
Writer: Lauren Kania | Project
FRONTIER
A GREAT FRONTIER
potential, Xanadu Mines discovers and defines the country and the surrounding region. Spencer Moorhead, Managing Director, tell us more Project Manager: Eddie Clinton
Committed to Mongolia and its vast potential as one of the last remaining great copper landmarks, Xanadu Mines (Xanadu) is an exploration company that discovers and defines globally significant porphyry copper-gold deposits.
As an Australian Securities Exchange (ASX) and Toronto Stock Exchange (TSX)-listed operation, Xanadu provides investors exposure to globally significant, large-scale copper-gold discoveries and low-cost inventory growth.
Equally, it remains one of the few junior explorers to jointly control a globally significant mineral deposit with its 50-50 joint venture (JV) partner, Zijin Mining Group (Zijin).
“We see Mongolia as our key advantage – underexplored, flat, a great mining culture, a well-educated population, a location just north of China, and a government that invests in mining infrastructure,” introduces Spencer Cole, Chief Development Officer.
Xanadu is led by an expert team of exploration and mining professionals with a track record of discovery and
company is progressing each project in its portfolio to create value for shareholders.
The company boasts well-trained Mongolian geology and operations teams with vast experience running large exploration programmes and no expatriate (expat) presence on site or in country.
Currently, the industry is facing new and rapidly emerging technological advancements whilst navigating a turbulent geopolitical world.
“The nature of the mining industry has always been closely associated with geopolitics and movements in the global economy. Who we work with and what we focus on moves with both these factors,” details Cole.
This is directly illustrated through new trends such as nickel, lithium,
APAC
OUTLOOK: WHAT, FOR YOU, DIFFERENTIATES XANADU FROM THE COMPETITION?
Spencer Cole, Chief Development
“Our differentiators are our position, experience, and network in Mongolia – an underexplored jurisdiction with significant opportunity and a much lower drilling cost than most other
Colin Moorhead, Managing “Xanadu’s joint control of Kharmagtai with a pre-feasibility study of high-level international standard makes us stand out.
“Our board and executive team have broader and deeper experience than most exploration juniors and are specifically assembled to move Kharmagtai up the value curve to commercialisation.”
copper, and gold alongside recent events in countries such as Russia and China.
Equally, there is much focus on human impact on the planet and how companies can reduce their environmental footprint and resource consumption.
“Mining is ultimately the solution rather than the problem,” insights Colin Moorhead, Managing Director.
“Solar arrays, wind farms, electric cars, and smart grids all depend on effective output from the mining industry. Communicating that effectively is a challenge for the industry.”
THE FIVE VALUES OF SUCCESS
After graduating with a mechanical and materials engineering degree, Cole began his career as an aerospace material and process engineer in California, eventually moving to ExxonMobil.
It wasn’t until a trip to Australia that he began thinking about transitioning to the mining industry.
After working in myriad commercial and project roles in the booming sector, he received an invitation to join Xanadu in 2020.
Colin Moorhead, Managing Director
Spencer Cole, Chief Development Officer
“My purpose was to help move the company and its flagship project from an exploration play up the value curve to commercialisation,” he expands.
Conversely, Moorhead has been in the mining industry since the get-go, having trained as a geologist and worked in operations, resource development, and discovery exploration.
With a team that discovered the Ridgeway Mine at Cadia Valley and the Cracow Mine in Queensland, Moorhead has enjoyed a long and successful career in mining, culminating in his position as Managing Director of Xanadu.
Both Cole and Moorhead have brought their expertise to the company, working to leverage the experience and relationships developed over their careers to deliver low-cost and effective discovery and resource growth.
Equally, to continue its growth and reputation for success, Xanadu adheres to five key values – sustainability, integrity and honesty, scientific basis, disciplined capital management, and culture and performance.
On the former, Cole notes that Xanadu is a good corporate citizen and neighbour to its partners in Mongolia.
“We operate and explore in a way that keeps our team safe, cares for the environment, and supports the communities where we operate,” he dictates.
Regarding integrity and honesty, the company goes out of its way to comply with all standards and requirements alongside operating to the highest levels of safety, sustainability, and disclosure.
To ensure a scientific basis, Xanadu uses modern techniques and best practices for exploration and project development.
“We aim to fail fast. If results and science fail to back a project to deliver our objectives, we move on to the next,” insights Moorhead.
“WE LEAD BY EXAMPLE, SUPPORT EACH OTHER TO ACT WITH INTEGRITY AND ACCOUNTABILITY, AND CONSISTENTLY LIVE OUT OUR VALUES EVERY DAY”
– COLIN MOORHEAD,
MANAGING
DIRECTOR, XANADU MINES
The management team treats shareholder money like their own to ensure disciplined capital management. Equally, the company behaves as owners and emphasises long-term value creation over short-term gains. Finally, in terms of culture and performance, Xanadu promotes technical excellence and innovation, aiming to attract and retain the best people.
“We lead by example, support each other to act with integrity and accountability, and consistently live out our values,” dictates Moorhead.
A REPUTATION FOR EXPERTISE
Xanadu’s most substantial endeavour to date is the Kharmagtai copper-gold project located in Omnogovi Province, approximately 420 kilometres (km) southeast of Ulaanbaatar.
XANADU’S STRATEGIC ADVANTAGE
The company’s position in Mongolia provides numerous strategic advantages, including:
SCALE OF DEPOSITS – Multiple globally significant discoveries are still underexplored.
LOCATION – On the doorstep of China, which is a key global copper consumer, Mongolia has lots of land and a sparse population.
INFRASTRUCTURE – Mongolia has established grid power, road, rail, and water infrastructure that enables short production times and low capital development intensity.
MINING CULTURE – Mining represents 21 percent of the country’s GDP and 85 percent of exports. There are approximately 40,000 Mongolian mining professionals in the workforce.
STABLE AND DEMOCRATIC – Mongolia has a 30-year history of democratic elections and a 98 percent literacy rate.
As an estimated 2.2 billion tonne (t) resource containing 4.7 metric tonnes (Mt) of copper and 11 million ounces (Moz) of gold, the project has been granted a 30-year mining licence and is now certified as a registered water resource, signifying its importance.
“Scale and mine life are globally meaningful. The project will likely extend to become an underground block cave mine,” details Cole.
The role of core scanning in reducing risk and time moving through pre-feasibility:
A Case Study from Xanadu Mines.
Introduction: Xanadu Mines utilised Geotek Ltd’s BoxScan automated core scanner combined with machine learning to help shorten the timeframe and reduce risk during the Kharmagti project pre-feasability study (PFS).
Context: Xanadu Mines delivered the 18-month PFS for the Kharmagtai project in October 2024, confirming its potential as being a globally significant, long-life, low-cost and low-risk copper-gold mine. The study projects annual production of 60-80 ktpa Cu and 165-170 kozpa Au over a nearly 30-year mine life1.
BoxScan was used to generate a robust, objective, consistent and reliable dataset used as the foundation for machine learning modelling and decision making, helping to accelerate the PFS timeline whilst maintaining a high level of confidence.
Technique: Two BoxScan multi-sensor core logging systems were deployed on site and scanned around 150km of core from the Kharmagtai project. Machine learning was applied for lithology and texture classification and sulphide classification. Here, machine learning models were trained on a comprehensive range of analytical techniques made possible using the BoxScan, including digital imagery, mineralogy (VNIR-SWIR hyperspectral) and physical fracture properties derived from laser profiler analysis. One machine learning model was developed for prediction of disseminated versus vein sulphide observed downcore, which helps to constrain metallurgical performance, including target grind size and acid
forming characteristics for geometallurgical and PAF/NAF modelling (Fig. 2).
1Xanadu Mines Pre-Feasibility Study - Kharmagtai Copper-Gold Project. October 2024. https://www.xanadumines.com/kharmagtai/pre-feasibility-study
On BoxScan, Xanadu says “[BoxScan] adds only 10-15 USD per m to XAM drill costs with only two geologists logging per 12 hour rosta compared with eight geologists to log and eight field technicians to move core to relog the core by hand.”
Technology: The BoxScan system from Geotek Ltd is an automated core logging system with multiple sensor options for geochemical, physical and mineralogical properties to be measured. Data includes pointchemistry, digital core images (wet and/or dry), VNIR and SWIR hyperspectral mineralogy, magnetic susceptibility, RQD and fracture identification, with onboard core curation including location and depth metadata. A range of machine learning models can be applied to augment this data prior to exporting to a wide range of modelling packages.
Fig 2. Discrimination of disseminated vs veined sulphides (left), vein size (centre) and NAF model (right).
Fig 1. The Lassonde Curve demonstrates where an enhanced understanding of core can minimise risk and time.
Size of vein
Ratio of Disseminated Sulphide vs Vein (blue=more vein)
The Kharmagtai deposit remains open at depth, demonstrating increasing grade as it goes further down and indicating vast potential for a significant underground discovery.
In 2023, Xanadu joined a 50-50 JV with Zijin for the project’s progression, highlighting that the deposit is one major companies are interested in.
“Kharmagtai is too big for us to build on our own, which is why we brought in Zijin. This gave legitimacy to the project, funding for the next stage, and clarity that there was sufficient financial heft to develop it into a fruitful success,” notes Moorhead.
Equally, whilst many new projects are taking longer to come online due to being deeper, harder to mine, and
burdened with environmental, social, and governance (ESG) barriers, Kharmagtai is a conventional truck and shovel mine with an outcropping orebody which has the capacity to be up and running within the next three years due to available infrastructure, government support, flat ground, and its proximity to the Chinese border.
The project will be the third
“WE OPERATE AND EXPLORE IN A WAY THAT KEEPS OUR TEAM SAFE, CARES FOR THE ENVIRONMENT, AND SUPPORTS THE COMMUNITIES WHERE WE OPERATE”
– SPENCER COLE, CHIEF DEVELOPMENT OFFICER, XANADU MINES
global-scale copper mine in the country and the second established by foreign direct investment (FDI) – something the Mongolian government is directly supporting.
“The DNA of the company is to explore, discover, develop, and move projects on to deliver a liquidity event for our shareholders and then do it all again,” explains Moorhead.
XANADU
DISCOVERING A BRIGHT FUTURE
As Xanadu continues to look towards a successful future of exploration and discovery, it is highlighting its sustainability efforts and support for local communities.
The company endeavours
to commit to safe and healthy operations, minimise its environmental footprint, develop and maintain strong relationships with communities and government, and act transparently and ethically.
“One of our key initiatives is a school refurbishment programme
in regional communities near our operations,” discloses Cole.
“This has been highly successful and is currently being expanded.”
Alongside its school refurbishment programme, Xanadu supports local communities through hospital upgrades, education initiatives to
send local students to university, and various health programmes.
It also pays for groundwater wells and training for well monitoring and water quality analysis, provides animal feed during cold winters, and takes part in cultural events and celebrations.
In addition to its sustainability endeavours and community support, the company’s key priorities for the upcoming year include the continual progression of Kharmagtai alongside its Red Mountain and Sant Tolgoi projects.
Ultimately, as Xanadu works towards further triumph and expansion in the mining industry,
it is continuing to emphasise the qualities that make it truly unique.
By creating value for shareholders through giving exposure to largescale copper-gold discoveries in Mongolia, creating liquidity events at peak points in the mining life cycle, and progressing projects from discovery to pre-feasibility, Xanadu is positioned for continued growth and success well into the future.
“We will also continue to evaluate new base metals and copper-gold project opportunities in Mongolia and the surrounding region and process new project acquisitions at the appropriate time,” Cole concludes.
