NEWS

Xanadu Mines retain speculative buy recommendation from Bell Potter

Read the latest media article on Xanadu Mines Kharmagtai Copper Gold Project in Mongolia.

Xanadu’s recently upgraded open pit resource underpins a proposed conventional open pit mining and processing operation.

Xanadu Mines (ASX:XAM) recently completed the open pit scoping study on its 76.5% owned Kharmagtai Copper-Gold Project in Mongolia, confirming that the deposits are of global scale with considerable upside.

Bell Potter Securities believes the positive study is only an interim one with more significant findings expected to progressively enhance Kharmagtai’s standing and advantages over its peers.

Following is an extract from Bell Potter’s research report:

The scoping study was prepared by CSA Global and while it validates the company’s strategy of exploring for large, high value porphyry copper-gold systems in Mongolia, as there are advantages of infrastructure and proximity to advanced industrial nations and manufacturing which contribute to favourably lower capital and operating costs, it is an interim one without published production forecasts.

XAM’s recently upgraded open pit Resource underpins a proposed conventional open pit mining and processing operation treating 20Mtpa (double our previously assumed size) which we estimate could yield ~54ktpa of copper and ~118kozpa of gold in concentrate at average all in sustaining costs of ~US$1.73/lb (after co-product gold credits) based on our assumed average ore grade of 0.31% copper and 0.26g/t gold (0.45% copper equivalent).

The Kharmagtai open pit Scoping Study confirms the company has one of the world’s most attractive undeveloped copper-gold projects.

While we feel ASX-imposed constraints on the reporting of some of the Scoping Study outcomes has detracted from its impact, the Study is only interim, with more significant findings expected to progressively enhance Khamagtai’s standing and advantages over its peers.

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SOURCE: PROACTIVE INVESTORS
DATE: MAY 1, 2019

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