Xanadu Mines (TSX:XAM) Managing Director Colin Moorhead sat down with The Market Herald’s Sonia Madigan to discuss the company’s advanced-stage copper-gold project in Mongolia.
The Kharmagtai Mine lies within Mongolia’s South Gobi porphyry copper province, which hosts most of the region’s known porphyry deposits, like the similar Oyu Tolgoi Mine operated by Rio Tinto.
A recently-conducted scoping study estimates the Kharmagtai Mine has a 30-year open pit mine life. It assumes the mine will produce approximately 50,000 tonnes of copper per year and 100,000 tonnes of gold.
Geo-political challenges exist for the company as Mongolia works to improve conditions for direct foreign investment. Securing funding for such a large project can also prove challenging.
The company plans on capitalizing on a bullish copper market, filling any gaps in the supply chain. It expects the Kharmagtai Mine to become Mongolia’s next big copper producer.