Mongolia Hamagotay Copper Gold Deposit Resources Renewal

Xanadu Mines' Hamagotai mine in Mongolia's South Gobi province has seen a significant increase in its resources, further cementing its position as one of the world's largest undeveloped gold-rich copper mines, according to sites such as Mining.com.
Over the past two years, the project has completed 162 holes and more than 58,000 meters of drilling work. This resource update is based on these drilling results.
At present, Hamagotay copper and gold ore resources are 1.3 billion tons, an increase of 12%; The volume of copper was 3.4 million tons, up 15%; Gold content is 8.5 million ounces, up 9%.
Among them, the estimated ore resources are 790 million tons, copper metal is 2.1 million tons, and gold is 5.6 million ounces, an increase of 50% over the 2021 estimate. It is estimated that the ore resources are 460 million tons, 1.3 million tons of copper and 2.8 million ounces of gold, which is lower than before, mainly because of the upgrading of resources.
High-grade ore resources increased by 25% from the previous 125 million tons, copper equivalent grade of 0.75%. This is expected to boost cash flow in the early stages of development, the company said.
"The resource update is an important milestone for Sundo Mining and its partners, cementing Hammargotai's position as one of the largest undeveloped coppers and gold deposits on the ASX and in the world," said Colin Moorhead, Executive President and managing director of Sundo Mining.
"This result is in line with our expectations for ore volume and grade, and the key parts are much better." There has been a 25 per cent increase in high-grade (higher than 0.75 per cent copper equivalent) deposits that can improve project economics and return on capital, and these carefully defined large high-value segments really make Hamagotay stand out among similar sized deposits, "he added.
As the operator of the project, Shangdu Mining is promoting pre-feasibility studies and starting reserve estimates, which will be completed in the third quarter of next year.
Moorhead said the new resource update marks the completion of the largest collection of data for Hamagotay's pre-feasibility study, and the company is now weighing various factors and selecting a design.
"With 63 per cent of the resource currently classified as a 'constructive resource' with an appropriate boundary grade, we believe the project has the ability to become a long-life profitable mine at different price levels," he said.
Preliminary studies show that the project can produce 50,000 tons of copper and 110,000 ounces of gold per year, with a comprehensive maintenance cost of $1.87 / pound and a mine life of 30 years.
The company plans to start production in 2027.
The Hamagotay copper and Gold project consists of six deposits, all of which are not fully controlled.
The Mongolian government is reportedly planning to amend the mining law to lower royalties to attract more investment.