Investors are today absorbing with enthusiasm Xanadu Mine’s (ASX:XAM) update it has recovered up to 91% gold in early sample testworks using a novel process.
Selecting Perth-based MPS to do the work, which owns the rights to a unique downstream process, Xanadu reports the use of glycine in conjunction with cyanide allows it to recover gold from material that would otherwise go to waste.
In short, gold floats in cyanide, which is why liquid cyanide is hugely popular in downstream gold processing.
Xanadu notes that by also using glycine during this process, the company can effectively stop coincident copper mineralisation from bonding to the cyanide. Copper instead bonds to the glycine, allowing for greater leaching of gold in the cyanide.
With that context, it’s obvious to see the appeal of the MPS process at Xanadu’s Mongolian Kharmagati copper gold project. Copper recovery rates sit at 46%.
The company continues to examine the MPS process, towards the end-goal of minimising cyanide use where possible.
In the previous quarter, Xanadu published its second sustainability report attached to the Kharmagati project.
The company is intending to unlock for investors the full value potential of its 8Moz gold resource while adhering to green credentials, as well as a whopping three million tonnes of copper.
Xanadu executed an agreement with China’s Xijin Mining Group earlier this year towards the development of Kharmagati, a project with a thirty year mine life and an internal rate of return of 20% after tax.
News of today’s boosted gold recovery rates have boosted the Xanadu share price by 8.3% to 2.6c in early afternoon trade.
One week performance is up 13%, though, sell-offs have shaken the company this year.
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