Xanadu Mines Ltd (XAM)
Key Information
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Company Deep Dive
Xanadu Mines Ltd (ASX: XAM) is an exploration company that discovers and defines globally significant porphyry copper-gold deposits in Mongolia.
Xanadu leverages the experience and relationships developed over nearly a decade in the country to deliver effective low cost discovery and resource growth. Xanadu maintains a multi-stage portfolio of exploration projects and remains one of the few junior explorers on the ASX in control of an emerging Tier 1 copper-gold deposit; the flagship Kharmagtai project.
Xanadu is led by an experienced team of exploration and mining professionals who have a track record of discovery and value creation. Additionally, Xanadu is dual listed on the Toronto Stock Exchange.
Highlights
Acreage in a still unexplored region boasting multiple globally significant discoveries
Large landholding located on China’s doorstep, the key global copper consumer
Project next door to Rio Tinto’s Oyu Tolgoi mine with established grid power, roads, rail and water enabling fast track to production and low capital development intensity
Mining represents 21% of GDP and 85% of exports in Mongolia, backed by approximately 40,000 mining professionals in the workforce
Stable jurisdiction with a 30 year history of democratic elections and 98% literacy rate
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People
Board
Colin Moorhead
Mr Moorhead is an experienced industry executive with a demonstrated track record of over three decades building value in mining companies through innovation, discovery, project development and safe, efficient operations. Colin has extensive experience in development and financing significant mining projects internationally.
Colin Moorhead
Executive Chairman and Managing Director
Mr Moorhead is an experienced industry executive with a demonstrated track record of over three decades building value in mining companies through innovation, discovery, project development and safe, efficient operations. Colin has extensive experience in development and financing significant mining projects internationally. He also has experience with global mining operations as well as experience in successful mergers & acquisitions.
A geologist by training, Colin is known for strong leadership, strategy and execution that saw him rise through the ranks from a graduate with BHP in 1987 to an executive level manager responsible for global exploration and resource development at Newcrest Mining from 2008 to 2015, a period of significant growth for the company. Colin has significant relevant experience as CEO of emerging Indonesian listed producer PT Merdeka Copper Gold Tbk, where he built and led the team that constructed and commissioned the highly successful Tujuh Bukit Gold Mine. Colin is a Fellow, Chartered Professional and Immediate Past President of AUSIMM, a graduate of AICD and Harvard Business School Advanced Management Program (AMP).
Ganbayar Lkhagvasuren
Ganbayar is a co-founder of Xanadu and has been a Director since 2006. He is the joint venture partner in Mongol Metals LLC and brings a vital Mongolian perspective to the Board of Directors. He works closely with the Managing Director in corporate development and managing the day-to-day operations in Mongolia.
Ganbayar Lkhagvasuren
Executive Director & Country Manager
Ganbayar is a co-founder of Xanadu and has been a Director since 2006. He is the joint venture partner in Mongol Metals LLC and brings a vital Mongolian perspective to the Board of Directors. He works closely with the Managing Director in corporate development and managing the day-to-day operations in Mongolia. Ganbayar is a member of the Safety, Health and Environment Committee.
Michele Muscillo
Michele is a Partner with HopgoodGanim Lawyers in Brisbane. He has practised exclusively in corporate law for the duration of his legal career and has extensive experience in mergers and acquisitions and capital markets transactions, including the negotiation of significant commercial contracts and agreements.
Michele Muscillo
Non-Executive Director
Michele is a Partner with HopgoodGanim Lawyers in Brisbane. He has practised exclusively in corporate law for the duration of his legal career and has extensive experience in mergers and acquisitions and capital markets transactions, including the negotiation of significant commercial contracts and agreements. His key areas of practice include Corporate Advisory and Governance, Mergers and Acquisitions, Capital Markets and Resources and Energy. Michele is also currently a Non-Executive Director with ASX-Listed Aeris Resources Limited (ASX: AIS) and a Non-Executive Director with ASX/TSX listed Cardinal Resources Limited (ASX/TSX: CDV). Formerly, Michele was also Non-Executive Director of Orbis Gold Limited from the time of its ASX listing, through the discovery of its flagship Natougou project and ultimately to the sale of the company to TSX-Listed SEMAFO Inc. (TSX: SMF) in 2015. Michele is the Chairman of the Nomination and Remuneration, and Audit and Risk committees.
Tony Pearson
Tony is an experienced international natural resources executive and company director. He is currently the Chair of ASX listed Peak Resources Ltd and Cellnet Group Ltd, a Trustee of the Royal Botanical Gardens & Domain Trust and a Non-Executive Director of Communicare Inc.
Tony Pearson
Non-Executive Director
Tony is an experienced international natural resources executive and company director. He is currently the Chair of ASX listed Peak Resources Ltd and Cellnet Group Ltd, a Trustee of the Royal Botanical Gardens & Domain Trust and a Non-Executive Director of Communicare Inc. He was formerly a Commissioner at the Independent Planning Commission, and previously a group executive at TSX/HKEx listed SouthGobi Resources, based in Hong Kong, where he was responsible for the company’s corporate and strategic initiatives. Tony also has over 15 year’s commercial and investment banking experience, covering the Asia Pacific natural resources industry, most recently as a Managing Director at HSBC
Broker Research Report
Projects
Kharmagtai Project
The Kharmagtai copper-gold project is located in Omnogovi Province, approximately 420km southeast of capital city Ulaanbaatar. It is within the South Gobi porphyry copper province, which hosts most of the known porphyry deposits in the South Gobi region of Mongolia—including Rio's Oyu Tolgoi copper-gold operations.
There are three styles of mineralisation at Kharmagtai; porphyry style stock work copper-gold (Cu-Au) mineralisation, tourmaline breccia style Cu-Au mineralisation, and epithermal gold associated with carbonate base metal veins. The project's Scoping Study delivers a 30-year life of mine plan valued at US$630M; a 4-year payback schedule, and a 20% internal rate of return (IRR). Annual production is forecast at 30-50Kt Cu and 100-115Koz Au.
Red Mountain Project
The Red Mountain porphyry copper-gold project is located within the Dornogovi Province of southern Mongolia, approximately 420km southeast of Ulaanbaatar.
Alteration and mineralisation at Red Mountain is characterised by multiple co-genetic Cu-Au porphyry centres, tourmaline breccia pipes and copper-gold/base metal magnetite skarns.
Exploration at Red Mountain has defined broad zones of strong quartz stockwork veining and associated high-grade gold mineralisation (typically around 0.5 to >5 g/t gold and 0.3 to 1.5% copper). The geology, strength of alteration and style of mineralisation also suggest that the mineralisation will extend at depth.
Milestones
Historical Milestones
Future Milestones
