Xanadu Mines Files Independent NI 43-101 Report, Clarifies Kharmagtai Project Metrics

Xanadu Mines Advances Kharmagtai Project Transparency

On 20 January 2025, Xanadu Mines Ltd (ASX: XAM, TSX: XAM) announced the filing of an independent National Instrument 43-101 (NI 43-101) technical report for its flagship Kharmagtai Copper-Gold Project located in Mongolia’s South Gobi region. This report, effective 10 October 2024, supports the recently completed Pre-Feasibility Study (PFS) and provides a detailed, regulatory-compliant assessment of the project’s mineral resources and economic potential.

The NI 43-101 report was prepared under the supervision of Julien Lawerence, an independent Qualified Person as defined by Canadian securities regulations. Mr. Lawerence reviewed and approved the technical and scientific content, ensuring the report meets the stringent disclosure standards required by the Toronto Stock Exchange (TSX) and Canadian Institute of Mining, Metallurgy and Petroleum (CIM) guidelines.

Regulatory Nuances Impact Reported Outcomes

A notable aspect of the filing is the clarification regarding differences between the NI 43-101 report and the previously released ASX PFS report dated 14 October 2024. The divergence arises from contrasting regulatory frameworks: under NI 43-101, only material classified within the Ore Reserve can be included in production and financial forecasts, whereas ASX guidelines permit inclusion of material outside the Ore Reserve. This distinction leads to variations in reported production volumes and economic metrics, which are fully detailed in the technical report.

This regulatory nuance is critical for investors and analysts seeking to reconcile the project’s economic outlook across jurisdictions. It underscores the importance of understanding jurisdiction-specific reporting standards when evaluating multinational mining ventures.

Kharmagtai’s Strategic Position and Joint Venture Structure

Kharmagtai remains a cornerstone asset for Xanadu Mines, representing one of the few globally significant copper-gold deposits controlled by a junior explorer listed on both the ASX and TSX. The project is operated through a 50-50 joint venture with Zijin Mining Group via Khuiten Metals Pte Ltd, which holds a 76.5% interest in the asset. This partnership combines Xanadu’s exploration expertise with Zijin’s operational and financial strength, positioning Kharmagtai for potential development and value creation.

The technical report’s release reinforces Xanadu’s commitment to transparency and regulatory compliance, providing stakeholders with a robust framework to assess the project’s viability and future prospects.

Looking Ahead

Investors should monitor forthcoming updates from Xanadu as the company progresses towards definitive feasibility and potential development decisions. The NI 43-101 report sets a benchmark for technical rigor and regulatory alignment, but the project’s ultimate value will depend on commodity prices, capital costs, and geopolitical factors in Mongolia.