It's good to be in the right place

Mines and Money interviews Andrew Stewart, Managing Director & Chief Executive Officer, Xanadu Mines, who will tell you about the post, the now and what to expect in the next 12 months. With the the exploration programmes undertaken by the company being some of the largest in Mongolia, Xanadu is poised to furthering its success.

Feb 28, 2018
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By Andrew Thake, Mines and Money

 

Dr Andrew Stewart is an exploration geologist with over 15 years’ experience in mineral exploration; primarily focused on project generation, project evaluation and exploration strategy development throughout Asia and Eastern Europe. Andrew has particular expertise in porphyry copper-gold and epithermal gold deposits, but has worked across a diverse range of commodities.

After providing technical and program management for Vale in Indonesia and Mongolia, Andrew joined Xanadu Mines as Chief Geologist leading the gold and base metals project generation and evaluation team in Mongolia. Andrew has been Managing Director and Chief Executive Officer of Xanadu Mines since 2016 and prior to that had been Chief Executive Officer.

 

Mines and Money (MM) How have the last 12 months been for Xanadu Mines?

 Andrew Stewart (AS): It’s been an exciting 12months for Xanadu Mines. Our flagship Kharmagtai Cu-Au project in Mongolia represents one of the most promising copper and gold discoveries being explored globally. Exploration drilling at Kharmagtai, located an hour’s drive north of the giant Oyu Tolgoi copper-gold deposit, continues to demonstrate the project’s potential to host a new, globally significant copper-gold discovery. Recent drilling at the project has registered some of the best intercepts to date with intervals of 650m or greater at +1% copper equivalent, which compares favourably to some of the more significant copper-gold discoveries in recent history, including Oyu Tolgoi and the Wafi-Golpu project in Papua New Guinea. The drilling success at Kharmagtai over the past 12 months should lead to a significant increase in the size and grade of the Mineral Resource.

 

MM: Can you tell us a little about how your projects at Sharchuluut, Oyut Ulaan and Kharmagtai are progressing? It looks as if there might be a large resource at Kharmagtai

 AS: Recent extension drilling at Kharmagtai has returns broad zones of high-grade mineralisation at shallow depths. New drilling beneath the maiden resource at Kharmagtai has extended mineralisation but more significantly, it has intersected bornite and extensive potassic alteration which could be the precursor to the discovery of a higher-grade system adjacent to the established resources.

The increasing scale of the drilling operations at Kharmagtai continues to extend the dimensions of the known mineralisation, while nineteen further known porphyry targets remain in the pipeline for future drilling. The Company is adding drill rigs to more rapidly to evaluate the new targets and further explore in areas that have returned significant intersections to date.

 

MM: What opportunities do you see for the next 12 months? How is your company positioned to take advantage of them?

AS: Following a heavily oversubscribed placement to domestic and international institutional and sophisticated investors raising approximately A$15.4 million completed in mid-2017, Xanadu has significantly expanded scale of the drilling operations at Kharmagtai and continues to extend the dimensions of the known mineralisation. The Company is adding drill rigs to more rapidly to evaluate new targets and further explore in areas that have returned significant intersections to date. XAM has a dual strategy of targeting higher grade extensions to the existing mineralisation whilst drill testing each of the existing 19 exploration targets with the aim of making a new discovery in 2018.  The Company is well-funded with $9.1m in cash at the end of December.

The exploration program being undertaken by Xanadu in Mongolia is among the largest to be undertaken by a junior ASX-listed company this year, targeting additional copper-gold and high-grade epithermal gold discoveries at Kharmagtai and the other main project in its portfolio, Oyut Ulaan. Further success will go a long way to confirming Xanadu’s credentials as Mongolia’s premier copper and gold exploration company.

 

MM: What are the biggest challenges you are facing right now?

AS: What is lacking in this industry now are new discoveries. XAM is in a privileged position and this is the opportunity that has come from a bear market. Now is the time to be leveraged to discovery upside and courter-cyclic timing so the discoveries are ready for the next boom.

 

MM:  How has the mining investment landscape changed over the last few years?

AS: New metals cycle brings new opportunities – and you need to remain relevant in shifting markets. Xanadu is ideally positioned with Kharmagtai and a portfolio of strong projects to advance and ensure a clear value proposition to create value for shareholders; Ensuring we have the foundation and appropriate culture to capitalise. Xanadu is cashed up and news flow-rich with a high intensity exploration program underway.

We are in the exploration business – which is a simple investment Discover a world class deposit and Deliver above average returns to investors. We understand the ricsk and we mitigate against the risk with good people and work. 

There have also been positive developments in Mongolia with the election of a new government and the advancement of the giant Oyu Tolgoi underground project. In addition, markets have improved with the copper price coming off lows and enjoying positive momentum as supply disruptions are announced at various copper projects around the world.

 

MM: What do you think the industry needs to do to improve its reputation?

AS: Xanadu has a major new high-grade copper-gold discovery underway that will attract global attention. The government has improved its legal and fiscal regime and is intent on attracting foreign mining investment. Mongolia will emerge as the hottest exploration region in Asia in 2018–2019, possibly the world. Global mining companies will be drawn to Mongolia like a magnet, just as has happened with Sol Gold’s Cascabel discovery in Ecuador.


MM: What will be the impact if any of blockchain in the mining industry?

AS: Competition to capital.


Dr Andrew Stewart is an exploration geologist with over 15 years’ experience in mineral exploration; primarily focused on project generation, project evaluation and exploration strategy development throughout Asia and Eastern Europe. Andrew has particular expertise in porphyry copper-gold and epithermal gold deposits, but has worked across a diverse range of commodities.

 

After providing technical and program management for Vale in Indonesia and Mongolia, Andrew joined Xanadu Mines as Chief Geologist leading the gold and base metals project generation and evaluation team in Mongolia. Andrew has been Managing Director and Chief Executive Officer of Xanadu Mines since 2016 and prior to that had been Chief Executive Officer.

 

Mines and Money (MM) How have the last 12 months been for Xanadu Mines?

Andrew Stewart (AS): It’s been an exciting 12months for Xanadu Mines. Our flagship Kharmagtai Cu-Au project in Mongolia represents one of the most promising copper and gold discoveries being explored globally. Exploration drilling at Kharmagtai, located an hour’s drive north of the giant Oyu Tolgoi copper-gold deposit, continues to demonstrate the project’s potential to host a new, globally significant copper-gold discovery. Recent drilling at the project has registered some of the best intercepts to date with intervals of 650m or greater at +1% copper equivalent, which compares favourably to some of the more significant copper-gold discoveries in recent history, including Oyu Tolgoi and the Wafi-Golpu project in Papua New Guinea. The drilling success at Kharmagtai over the past 12 months should lead to a significant increase in the size and grade of the Mineral Resource.

 

MM: Can you tell us a little about how your projects at Sharchuluut, Oyut Ulaan and Kharmagtai are progressing? It looks as if there might be a large resource at Kharmagtai

 AS: Recent extension drilling at Kharmagtai has returns broad zones of high-grade mineralisation at shallow depths. New drilling beneath the maiden resource at Kharmagtai has extended mineralisation but more significantly, it has intersected bornite and extensive potassic alteration which could be the precursor to the discovery of a higher-grade system adjacent to the established resources.

The increasing scale of the drilling operations at Kharmagtai continues to extend the dimensions of the known mineralisation, while nineteen further known porphyry targets remain in the pipeline for future drilling. The Company is adding drill rigs to more rapidly to evaluate the new targets and further explore in areas that have returned significant intersections to date.

 

MM: What opportunities do you see for the next 12 months? How is your company positioned to take advantage of them?

AS: Following a heavily oversubscribed placement to domestic and international institutional and sophisticated investors raising approximately A$15.4 million completed in mid-2017, Xanadu has significantly expanded scale of the drilling operations at Kharmagtai and continues to extend the dimensions of the known mineralisation. The Company is adding drill rigs to more rapidly to evaluate new targets and further explore in areas that have returned significant intersections to date. XAM has a dual strategy of targeting higher grade extensions to the existing mineralisation whilst drill testing each of the existing 19 exploration targets with the aim of making a new discovery in 2018.  The Company is well-funded with $9.1m in cash at the end of December.

 

The exploration program being undertaken by Xanadu in Mongolia is among the largest to be undertaken by a junior ASX-listed company this year, targeting additional copper-gold and high-grade epithermal gold discoveries at Kharmagtai and the other main project in its portfolio, Oyut Ulaan. Further success will go a long way to confirming Xanadu’s credentials as Mongolia’s premier copper and gold exploration company.

 

MM: What are the biggest challenges you are facing right now?

AS: What is lacking in this industry now are new discoveries. XAM is in a privileged position and this is the opportunity that has come from a bear market. Now is the time to be leveraged to discovery upside and courter-cyclic timing so the discoveries are ready for the next boom.

 

MM:  How has the mining investment landscape changed over the last few years?

AS: New metals cycle brings new opportunities – and you need to remain relevant in shifting markets. Xanadu is ideally positioned with Kharmagtai and a portfolio of strong projects to advance and ensure a clear value proposition to create value for shareholders; Ensuring we have the foundation and appropriate culture to capitalise. Xanadu is cashed up and news flow-rich with a high intensity exploration program underway.

We are in the exploration business – which is a simple investment Discover a world class deposit and Deliver above average returns to investors. We understand the ricsk and we mitigate against the risk with good people and work.

There have also been positive developments in Mongolia with the election of a new government and the advancement of the giant Oyu Tolgoi underground project. In addition, markets have improved with the copper price coming off lows and enjoying positive momentum as supply disruptions are announced at various copper projects around the world.

 

MM: What do you think the industry needs to do to improve its reputation?

AS: Xanadu has a major new high-grade copper-gold discovery underway that will attract global attention. The government has improved its legal and fiscal regime and is intent on attracting foreign mining investment. Mongolia will emerge as the hottest exploration region in Asia in 2018–2019, possibly the world. Global mining companies will be drawn to Mongolia like a magnet, just as has happened with Sol Gold’s Cascabel discovery in Ecuador.

 

MM: What will be the impact if any of blockchain in the mining industry?

AS: Competition to capital.

 

Andrew Thake

Head of Content, Mines and Money

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