Xanadu Mines' Kharmagtai Project Yields Positive Metallurgical Test Results
XAM (XAM) Share Update September 2024 Tuesday 17th
Xanadu Mines Reports Positive Metallurgical Test Results for Kharmagtai Project
Xanadu Mines Ltd (ASX: XAM, TSX: XAM) has released promising Pre-Feasibility Study (PFS) metallurgical test results for its flagship Kharmagtai copper-gold project in Mongolia's South Gobi region.
Instant Summary:
- PFS metallurgical testwork for Kharmagtai is complete, including full locked cycle testwork (LCT).
- The study defines a conventional flowsheet, including crushing, grinding, and flotation to produce a saleable concentrate.
- Gold doré is produced through an upfront gravity circuit and leaching of cleaner tails.
- Combined process plant projected to deliver average overall recoveries of approximately 81% copper and 80% gold from sulphide feed.
- Testwork shows concentrate grades of up to 25% copper and 25g/t gold, with very low impurities.
- PFS study report, including these results, is expected in the coming weeks.
Metallurgical Testwork Completion
Xanadu Mines Ltd has successfully completed the PFS metallurgical testwork for its Kharmagtai copper-gold project. The comprehensive testwork program involved full locked cycle testwork (LCT) on representative deposit and master composites. The study defines a conventional flowsheet that includes crushing, grinding, and flotation to produce a saleable concentrate. Additionally, gold doré is produced through an upfront gravity circuit and leaching of cleaner tails.
The combined process plant is projected to deliver average overall recoveries of approximately 81% copper and 80% gold from sulphide feed. The recoveries are made up of gravity gold recovery of approximately 10%, simple flotation recovery of 81% copper and 63% gold, and carbon in leach (CIL) recovery of an additional 7% gold.
Concentrate Quality
Testwork also shows concentrate grades of up to 25% copper and 25g/t gold, with very low impurities, indicating potential strong demand for the product. The PFS study report will include these results and is expected to be released in the coming weeks.
Executive Commentary
Xanadu’s Executive Chairman and Managing Director, Mr. Colin Moorhead, stated, 'This concludes a comprehensive metallurgical testwork program aimed at defining the optimal ore processing pathway for the key deposits at Kharmagtai. Results are within our expectations, delivering a high-quality gold-rich copper concentrate that we expect to be in high demand.'
He further added, 'Results of this testwork and associated process design criteria have been used by DRA Global to develop the PFS plant design and associated capital and operating expenditure. We look forward to communicating these results when we release the PFS in the coming weeks.'
The positive metallurgical test results are likely to have a favorable impact on Xanadu Mines' stock as they indicate strong potential for the Kharmagtai project. The high-quality concentrate with low impurities suggests strong market demand, which could lead to better financial outcomes for the company. Investors may view this as a significant milestone, boosting confidence in Xanadu Mines' future prospects.
Investor Reaction:
Analysts are likely to react positively to the news, given the promising recovery rates and high-quality concentrate grades. The completion of the PFS metallurgical testwork and the upcoming release of the full PFS report are expected to provide further clarity on the project's economic viability, potentially leading to increased investor interest and stock price appreciation.
Conclusion:
Investors should keep an eye on the upcoming release of the full PFS report, which will provide detailed insights into the project's economic viability. Xanadu Mines' strategic response and further developments will be crucial in maintaining investor confidence and realizing the full potential of the Kharmagtai project.