The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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12 | ASIA Miner | Volume 14 • Issue 1 | 2017 XANADU Mines will spend more than A$4.5 million on exploration across its porphyry cop- per-gold projects in the South Gobi porphyry belt in 2017. Xanadu owns Mongolia's largest undeveloped copper-gold deposit, which is in the same region as Oyu Tolgoi. The planned exploration programs, which are among the largest to be undertaken by a ASX-listed junior exploration company in 2017, will target the discovery of additional copper-gold deposits on the Kharmagtai and Oyut Ulaan projects. Xanadu has defined more than 1.5 million pounds of copper and 2 million ounces of gold at the flagship Kharmagtai project, mak- ing it one of the world's most promising cop- per-gold projects. Managing director and CEO Dr Andrew Stewart said: "Our exploration is continuing to plan and we believe there remains excel- lent potential for more large-scale discoveries within our porphyry districts at Kharmagtai, that has already yielded three porphyry cen- tres, and at Oyut Ulaan. "We will continue to take a systematic ap- proach to assess the multiple copper-gold targets we have identified as being most pro- spective. We look forward to presenting the results of the first phase of drilling during the first quarter." The company recently received a report on preliminary metallurgical test work at the Altan Tolgoi deposit within Kharmagtai. The tests on diamond core from high-grade tourma- line breccia mineralisation returned positive results. The test work undertaken by Mining Associ- ates was aimed at producing a float concen- trate of copper, gold and silver. The work was combined with an optical mineralogy study and grinding power requirement testing. A single 30kg composite of the coarse reject samples for flotation testing and half core sample were selected for Bond Ball Mill Work Index determination. The assay head grade of the master composite was 4.37% copper, 1.86 g/t gold and 14.1 g/t silver. "The early stage flotation test results on the high-grade tourmaline breccia miner- alisation are exceptional," Andrew Stewart said. "The above average results, achieved at a moderate grind size, indicate high re- coveries, and that a standard crushing, grinding and flotation process is all that will be required to extract all economic minerals from the tourmaline breccia mineralisation. As expected, gold recoveries were also very high. "While further testing is required as the project advances, we foresee no significant hurdles to producing a high quality concen- trate via standard processing pathways." IN line with Xanadu Mines' long-standing and well-prepared suc- cession plan Dr Andrew Stewart has been appointed managing director and will continue in the CEO role. Executive chairman Mark Wheatley has moved to the role of non-executive chairman. Andrew Stewart was appointed Xanadu's CEO on March 18, 2015 and prior to that had been chief geologist. In a statement Xanadu said: "Andrew Stewart had already made significant contributions to Xanadu and his promotion to managing director and CEO is in recognition of his development, performance and leadership over the last 18 months. He will continue to be based in Mongolia until the end of this financial year or a date to be agreed and will then move to Sydney." About the appointment Andrew Stewart said: "I am delighted to take up this new role and work with the Board to realise the full po- tential of our advanced copper-gold and gold projects in Mongolia. "I will soon be appointing a highly experienced chief geologist to ensure a seamless transition of the succession plan. This will com- plete a reorganisation of our exploration team in Mongolia to ensure our focus on exploration success continues and will strengthen in-country capacity to support our well-funded ongoing exploration programs across multiple projects. "My move to Australia will assist with promotion and provide eas- ier and more regular access to important stakeholders and capital investment markets." The company subsequently appointed Mat Brown as chief geologist, a role in which he will draw on his vast experience with porphyry copper-gold and epithermal gold systems. He has been an exploration geologist around the Pacific region and Aus- tralia for more than 20 years, and applies cutting edge methods of structural geology and geochemistry towards gold and base metals exploration. He previously worked with Ivanhoe Mines for 10 years, includ- ing six years as exploration manager in Cloncurry, Queensland, and has been involved with several greenfields discoveries, including the Merlin high-grade molybdenum and SWAN cop- per-gold deposits, and brownfields projects at Osborne, Kulthor and Starra. "I am delighted to take up this role and to guide the exploration team through the next phase of exploration on one of the most ad- vanced porphyry copper exploration projects in Asia while ensuring the appropriate focus is maintained on our exciting regional explo- ration program at Oyut Ulaan," he said. Andrew Stewart appointed managing director Drilling at one of Xanadu Mines' South Gobi cop- per-gold prospects. Xanadu plans exploration program

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