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Mongolia’s Next Major Copper Mine Annual General Meeting 22 May 2025 | ASX:XAM TSX:XAM For personal use only
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Opening of the Meeting Colin Moorhead Executive Chairman & Managing Director 2 For personal use only
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K H A R M A G T A I Opening of Meeting 3 Quorum of 3 shareholders present I formally declare open, this Annual General Meeting of the shareholders of Xanadu Mines Ltd For personal use only
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K H A R M A G T A I P F S 4 Director Introductions Executive Chairman & Managing Director Colin Moorhead Non-Executive Director Michele Muscillo Executive Director & Country Manager Ganbayar Lkhagvasuren Non-Executive Director Tony Pearson Non-Executive Director Shaoyang Shen For personal use only
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E x p l o r a t i o n 5 Update from the Executive Chairman & Managing Director ASX:XAM | TSX:XAM For personal use only
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Disclaimer The information contained in this presentation has been prepared by Xanadu Mines Limited ( Xanadu or the Company). This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in Xanadu. This presentation has been made available for information purposes only and does not consti tute a prospectus, short form prospectus, profile statement or offer information statement. This presentation is not subject to the disclosure requirements affecting disclosure documents under Chapter 6D of the Corporations Act 2001 ( Cth) (Corporations Act). This presentation may contain certain forward-looking statements and projections regarding estimated, resources and reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantee of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control of Xanadu. The forward-looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved. Xanadu does not make any representations and provides no warran ties concerning the accuracy of the projections and disclaims any obligation to update or revise any forward -looking statements/projects based on new information, future events or otherwise except to the extent required by applicable laws. Wh ile the information contained in this presentation has been prepared in good faith, neither Xanadu or any of its directors, offic ers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, complete ness or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of Xanadu, its directors, employees or agents, advisers, nor any other person accepts any liabi lity whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or mis statements or for any loss, howsoever arising, from the use of this presentation. This presentation also provides a summary description of Xanadu, Bastion Mining Pte Ltd (Bastion) and Boroo Pte Ltd (Boroo) and the proposed transaction under which Bastion proposes to acquire all of the issued shares in Xanadu that it does not already own ( Transaction) and is being provided for information purposes only. There is no guarantee that the Transaction will be completed on the terms as set out herein o r at all. Completion of the Transaction is subject to a number of conditions as set out in the Bid Implementation Agreement between the parties, further details of which are available in Xanadu’s ASX/TSX Announcement of 19 May 2025. Cautionary Statements This Presentation includes information extracted from the Company’s ASX announcement dated 14 October 2024 titled Kharmagtai Pre-Feasibility Study and 14 October 2024 titled Kharmagtai Resource & Reserve. For the production targets and forecast financial information for the Project comprise Indicated Mineral Resources (approximately 73%) and Inferred Mineral Resources (approximately 27%). The Company has concluded that it has reasonable grounds for disclosing a production target which includes the foregoing amount of Inferred Mineral Resources, including on the basis that the Inferred material has been sched uled such that less than 11% of the ore mined in the first 8 years is in the Inferred category, with the remainder mined through the life of mine. The Inferred Mineral Resource does not have a material effect on the technical and economic viability of the Kh armagtai Project. Accordingly, Xanadu has concluded that it is satisfied that the financial viability of the development case mo delled in the PFS is not dependent on the inclusion of Inferred Mineral Resources early in the production schedule given an estimate d payment period (from commencement of production) of less than 4 years. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determi nation of Indicated Mineral Resources or that the production target itself will be realised. Further drilling is planned with the aim of converting Inferred Mineral Resources to Indicated Mineral Resources as well as continued exploration where the deposits a re open at depth and along strike. The views expressed in this Presentation contain information that has been derived from third party sources that have not been independently verified. No representation or warranty is made as to the accuracy, comp leteness or reliability of the information. Mineral Resource Reporting Requirements As an Australian company with securities quoted on the Australian Securities Exchange (ASX), the Company is subject to Austra lian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX Listing Rules that the reporting of mineral resources in Australia is in accordance with the JORC Code and that the Company’s mineral resource estimates comply with the JORC Code. The requirements of the JORC Code differ in certain material respect from the disclosure requirements or other countries. The terms used in this announcem ent are as defined in the JORC Code. The definitions of these terms may differ from the definitions of such terms for the purposes of the disclosure requirements in other countries. Forward Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of Xanadu and its projects may also include statements which are ‘forward -looking statements’ that may include, amongst other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anti cipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. The se ‘forward-looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Xanadu, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward -looking statements. Xanadu disclaims any intent or obligation to update publicly or release any revisions to any forward -looking statements, whether as a result of new information, future events, circumstances or results or otherwise after the date of this presentation or to reflect the occur rence of unanticipated events, other than required by the Corporations Act 2001 ( Cth) and the Listing Rules of the Australian Securities Exchange (ASX) and Toronto Stock Exchange (TSX). The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘tar get’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward-looking statements. All ‘forward-looking statements’ made in this Study are qualified by the foregoing cautionary statements. Investors are cautioned that ‘forward-looking statements’ are not a guarantee of future performance and accordingly investors are cautioned not to put undue reliance on ‘forward-looking statements’ due to the inherent uncertainty therein. Xanadu has conclude d that it has a reasonable basis for providing these forward -looking statements and the forecast financial information included in this presentation. To achieve the range of outcomes indicated in the Pre -Feasibility Study, funding of in the order of an approximately US$400 million will likely be required by the Company. Based on current market conditions and the results of studies undertaken, there are reasonable grounds to believe the Project can be financed via a combination of equity and debt, as has been done for numerous comparable projects in Mongolia and other jurisdictions in Asia in recent years. Debt may be secured from several sources including Australian banks, international banks, the high yield bond market, resource credit funds, and in conjunction with product sales of offtake agreements. It is also possible the Company may pursue alternative funding options, including undertaking a corporate transaction, seeking a joint venture partner or partial asset sale. There is, however, no c ertainty that Xanadu will be able to source funding as and when required. Whilst no formal funding discussions have concluded, t he Company has engaged with several potential financiers of Kharmagtai, and these financial institutions and corporations have e xpressed an interest in being involved in funding of the Project. The Kharmagtai Pre -Feasibility Study, and Resource and Reserve statements were prepared in compliance with the current JORC Code (2012) and the ASX Listing Rules. All material assumptions, including sufficient progression of all JORC modifying factors, on which the production target and forecast financial information are based have been included. D I S C L A I M E R 6 Disclaimers For personal use only
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K H A R M A G T A I P F S 7 Five Year Journey to Deliver Value Xanadu Stalled at 2.5cps • Refreshed Board and Management • Refreshed Strategy Answered Three Questions Holding Back Kharmagtai 1. How big is it? - Delivered a broader and more complete Mineral Resource 2. Is it economic? – Delivered a professional, high quality Scoping Study / PEA 3. How will you fund it? – Negotiated a strategic partnership with Zijin, finalised JV in March 2023 Delivered the Kharmagtai PFS • PFS demonstrated strong economics on a large scale, long-life, low-cost project • Handed over operatorship to Zijin to take the project forward to FID and construction • Completed Red Mountain drilling program and Sant Tolgoi first stage surface exploration Shareholder Liquidity Event Priced at 8cps • Back-up funding strategies remain in place 2019-2020 2021-2022 2023-2024 2024-2025 For personal use only
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Emerging mining jurisdiction with an extensive infrastructure network M O N G O L I A 8 Mongolia is Our Competitive Advantage Prospectivity The right rocks with some globally significant discoveries, yet remains largely underexplored Develop-ability Sparse population and wide-open spaces with excellent infrastructure (especially in South Gobi) Mining Culture Stable democracy with high education and training standards with mining representing 25% of GDP and 90% of exports Location On China’s doorstep (#1 global copper consumer) with excellent infrastructure existing and planned Local Expertise Xanadu has deep knowledge, understanding and experience of the geology and demonstrated ability to operate to high ESG standards in Mongolia KHARMAGTAI Advancing towards extraction through Material Liquidity Event or Feasibility Funding. PFS and Maiden Ore Reserve published in October 2024. RED MOUNTAIN Near surface, high-grade gold & copper exploration akin to Northparkes porphyry (Australia). SANT TOLGOI District-scale magmatic copper-nickel sulphide prospectivity. First pass exploration recently completed. For personal use only
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• Located in the South Gobi Desert of Mongolia • 120km north-west of Rio Tinto’s Oyu Tolgoi mine (moving to 500ktpa copper production) • Near supporting infrastructure, water resources, a skilled workforce and end markets • Granted mining licence with 30-year tenure with an option to extend another 40 years • Significant 2.2 billion tonne Mineral Resource • PFS and Maiden Ore Reserve Completed October 2014 ASX/TSX Announcement 14 October 2024 - Kharmagtai Resource & Reserve ASX/TSX Announcement 14 October 2024 - Kharmagtai Pre-Feasibility Study K H A R M A G T A I Kharmagtai - a Flagship Asset at PFS Stage 9 Large Scale Copper-Gold Porphyry System For personal use only
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ASX/TSX Announcement 14 October 2024 - Kharmagtai Resource & Reserve ASX/TSX Announcement 14 October 2024 - Kharmagtai Pre-Feasibility Study See Appendix for copper equivalent calculations and assumptions The JORC Code, 2012 sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The Information contained in this Announcement has been presented in accordance with the JORC Code, 2012. Mineral Resource Classification Tonnes (Mt) Copper Grade (%) Gold Grade (g/t) Insitu Copper (kt) Insitu Gold (koz) Indicated 1,300 0.22 0.17 2,900 7,100 Inferred 900 0.21 0.13 1,900 4,000 Total 2,200 0.21 0.15 4,700 11,000 Ore Reserve Classification Dry Tonnes (Mt) Copper Grade (%) Gold Grade (g/t) Insitu Copper (‘000 t) Insitu Gold (‘000 oz) Proved 0 0 0 0 0 Probable 730 0.21 0.17 1,600 4,000 Significant Resource and Reserve 10 Mineral Resource Estimate Ore Reserve Strong potential for growth at depth and along strike K H A R M A G T A I For personal use only
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PFS Highlights Average annual production of 75kt copper and 165koz gold over a 29-year LOM Maximises value from a globally significant project First quartile C1 cash cost of $0.70/lb copper for Stage 1 Zijin JV affords Xanadu multiple paths to realise value from its 38.25% stake in Kharmagtai Mongolian Feasibility Study & DEIA on track, BFS to commence in early CY25. Construction targeted during CY26 subject to FID & approvals Post-Tax NPV of US$930M Post-Tax IRR of 21% Payback Period of 4 years Pre-Production Capex US$890M Open pit, low strip ratio mine. Conventional sulphide flotation plant, augmented by gravity and CIL to increase gold recovery Large Scale Production Profile Strong Investment Returns Funding De-risked Next Steps Simple, Proven Approach Low-Cost Operation ASX/TSX Announcement 14 October 2024 - Kharmagtai Pre-Feasibility Study 11 For personal use only
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ASX/TSX Announcement 21 December 2022 – Investment Deal Signed with Zijin – Pathway to Production Kharmagtai Xanadu Mines Zijin Mining 50% 50% 85% 90% 100% Mongol Metals Khuiten Metals Oyut Ulaan Zijin is one of the largest metals mining company in the world and is targeting production of over 1.5Mt of copper by 2028, a 50% increase from 2023 production levels 1. April 2022: Placement to raise ~A$5.6 million and providing Zijin with a 9.9% shareholding in Xanadu 2. March 2023: Placement to raise ~A$7.2 million and providing Zijin with a 19.4% shareholding in Xanadu 3. March 2023: Creation of a 50/50 JV, Khuiten Metals, that holds a 76.5% effective interest in Kharmagtai. Zijin has invested US$35.0 million in the JV to fund the Kharmagtai PFS and exploration until September 2024 4. October 2024: Delivered PFS, transitioned operatorship to Zijin, commenced planning for Feasibility Study 1. Feasibility Study and Approvals: Expected cost to FID approximately US$50-60M. Budget planning underway with Zijin. 2. Construction and Commissioning Expected cost to commercial operations approximately US$850-900M. Kharmagtai Joint Venture 12 K H A R M A G T A I Optionality to progress Kharmagtai Next Steps (2025 forward) Progress to Date (2022-2024) Partnership Structure For personal use only
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Highly prospective projects in Mongolia E X P L O R A T I O N 13 Copper Focused Exploration Portfolio • 100%-owned, 57km2 license featuring near-surface gold and copper-gold targets, akin to the Northparkes porphyry deposit • 4,800m diamond drill program completed in 2024, encountering significant shallow mineralisation across four prospects • Next stage exploration plan in development • In discussions with potential JV partners to fund next stage ASX/TSX Announcement 21 June 2024 – Near Surface Copper & Gold Results at Red Mountain • Earning into 80% of two exploration licenses, targeting magmatic intrusion-related copper- nickel systems in the Khangai Fault System • Reconnaissance rock-chip sample results up to 2.1% Cu from multiple gossan outcrops • 2024 field operations identified 4 high priority copper drill targets, based on detailed mapping, geophysics and geochemistry • 2025 drill program in planning stage, with potential delay to address newly imposed environmental restrictions ASX/TSX Announcement 22 January 2024 – Xanadu enters new Copper Nickel Sulphide exploration project. ASX/TSX Announcement 10 September 2024 – Copper-Nickel Exploration Advancing at Sant Tolgoi project ASX/TSX Announcement 20 November 2024 – Sant Tolgoi Exploration Update Red Mountain (Cu-Au) – South Gobi Region Sant Tolgoi (Cu-Ni) – Western Mongolia For personal use only
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14 Overview – Transaction with Bastion Mining T R A N S A C T I O N All cash acquisition of Xanadu for $0.08 per share by Singapore based Bastion Mining via Off Market Takeover with a 50.1% minimum acceptance condition, implying a total equity value for Xanadu of A$160 million, excluding the proposed share issue to Bastion Transaction consideration represents a 57% premium to last close and 62% premium to Xanadu’s 10-day volume weighted average price (VWAP) Transaction subject to a 50.1% minimum acceptance condition and limited other conditions(1) Xanadu Takeover Board Committee(2) unanimously recommends shareholders accept the offer, subject to: • Independent Expert Report (IER) confirming the transaction is fair and reasonable; and • In absence of a superior proposal Xanadu Takeover Board Committee Directors and its 2nd largest shareholder CAAF Ltd (which holds 11.85%) intend to accept the offer(3) In light of the proposed change of control transaction, the Takeover Board Committee has committed to withdraw Resolution 1 – 25% Put Option at the Company’s Extraordinary General Meeting, scheduled on 4 June 2025(4) To assist Xanadu in meeting its corporate and joint venture funding obligations during the offer period, Bastion and Xanadu have entered into a share subscription agreement (1) Full details of the Bid Implementation Agreement are included in ASX/TSX Announcement 19 May 2025 – Recommended A$0.08 Per Share Cash Offer (2) The Takeover Board Committee comprises all Xanadu Directors other than Ganbayar Lkhagvasuren and Zijin’s representative, Shaoyang Shen (3) Subject to the Independ Expert concluding the offer fair and reasonable and in the absence of a superior proposal (4) The Put Option Resolution will be withdrawn following successful completion of the equity funding arrangements under the share subscription agreement For personal use only
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15 Transaction Rationale T R A N S A C T I O N Attractive and significant premium to Xanadu’s historical trading price Delivers certain value while minimising inherent liquidity and compulsory acquisition risks Avoidance of future funding and associated dilution risk There is currently no competing proposal(2) Takeover Board Committee are supportive and intend to vote in favour(1) (1) Subject to the Independent Expert concluding (and continuing to conclude) that the offer is fair and reasonable and in the ab sence of a superior proposal (2) On 7 April 2025, Xanadu announced that it had entered into exclusivity arrangements with its major shareholder, Zijin Mining Group Co. Ltd (Zijin). The exclusivity arrangements were agreed following receipt of a non-binding indicative offer presented to Xanadu by Zijin (Zijin NBIO). Following a period of exclusivity, Xanadu announced on 5 May 2025 that it had been unable to finalise the terms of a control transaction with Zijin in relation to the Zijin NBIO. For personal use only
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16 Who is Bastion Mining? T R A N S A C T I O N • Bastion Mining Pte. Ltd. is a consortium comprising Boroo Pte. Ltd. (Boroo) and Xanadu Director Ganbayar Lkhagvasuren • Boroo is a private, Singapore- incorporated entity which invests in major gold projects internationally • Boroo’s flagship asset is the producing Lagunas Norte Gold Mine in Peru, which Boroo purchased from Barrick Gold in 2021 • Through its control stake in Steppe Gold Ltd., Boroo has interests in the Boroo, Ulaanbulag and ATO gold mines in Mongolia • As a responsible emerging mining company, Boroo is focused on becoming a global mid-tier metals producer Lagunas Norte mine & Tres Cruces Project (100%) • Lagunas Norte CMOP operation • Lagunas Norte B project • PMR flotation project • 12 exploration properties within 35 km radius About Bastion Mining Boroo’s Portfolio Boroo Gold mines (~55.9%)(1) • Boroo mine • Ulaanbulag mine Steppe Gold mines & projects (~55.9%)(1) • ATO mine • ATO Phase 2 project • Uudam Khundii project (1) Boroo effectively owns ~55.9% of its mines located in Mongolia through Steppe Gold Ltd. The transaction with Steppe Gold Ltd closed on August 1, 2024 4 producing mines 4 growth projects 243 koz 2023 Gold production Key Statistics Mongolia Peru 13 projects under exploration For personal use only
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Proposed Xanadu PathwayThe proposed acquisition of Xanadu by Bastion is aligned with the Company’s ‘Plan A’ strategy of generating returns for shareholders and also providing a liquidity event • Xanadu Takeover Board Committee considers the Offer superior to the Put Option and unanimously recommends that shareholders accept the offer subject to IER confirming the transaction is fair and reasonable and in the absence of a superior proposal • In light of the proposed change of control transaction, Resolution 1 to approve the exercise of the 25% Put Option at the Company’s Extraordinary General Meeting, scheduled on 4 June 2025, will be withdrawn following settlement under the Subscription Agreement 17 Put Option Withdrawal T R A N S A C T I O N Plan A Plan B Plan C Corporate Transaction • Corporate transaction providing Xanadu shareholders with liquidity at an attractive premium, recognising the company’s inherent value and considerable achievements in progressing the Kharmagtai Copper- Gold Project – supported by Jefferies as Defence Adviser Put Option • Exercise Put Option and retain a 25% interest in the JV with no future cash outlay, creating a long-term annuity for Xanadu albeit relinquishing control of project decisions Fund 50% JV obligations • Fund JV obligations through to Feasibility Study via combination of debt and equity – supported by Bacchus Capital as Strategic Funding Adviser For personal use only
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Subscription Agreement Summary Subscriber Bastion Mining Pte. Ltd. Shares Issued 286.8 million shares Subscription Price $0.06 per share Funds Raised $17.2 million Settlement Expected to occur 26 May 2025 Conditions Bastion may elect to terminate in certain circumstance where a competing proposal is received 18 Subscription Agreement and Timetable T R A N S A C T I O N Indicative Timeline(1) (1) The above dates are indicative only and may change without notice, subject to the requirements of the Corporations Act 2001 ( Cth) and the ASX Listing Rules 19 May 2025 26 May 2025 28 May 2025 28 May 2025 2 July 2025 Announcement of Offer Issue of Subscription Shares Dispatch of Bidder's Statement and Target's Statement Offers opens Closing date of Offer (unless extended) For personal use only
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Completing Kharmagtai’s Development Journey 19 Acquire Explore Discovery & Resource Scoping Study Reserve and Pre-Feasibility Study Feasibility Develop Operate 3-4+ years 2 years 2 years 1-2 years 2-3 years Market Valuation SPECULATIVE VALUE LATENT VALUE BANKABLE VALUE CASH GENERATION VALUE 2015 Maiden Mineral Resource THE “VALLEY OF DEATH” K H A R M A G T A I 30+ years 2017 Extensive Drilling 2019 Drilling Paused, Board Changes 2022 Resource Updated, PEA Completed, JV Signed with Zijin 2024 PFS Completed, Maiden Ore Reserve 2025 Xanadu Corporate Transaction For personal use only
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A p p e n d i x 20 Resolutions For personal use only
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21 Meeting Formalities Notice of Meeting distributed on 22 April 2025 Taken as Read For personal use only
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K H A R M A G T A I P F S 22 Receipt and Consideration of Reports Financial Report for the calendar year ended 31 December 2024 Questions on Financial Report: • Spencer Cole, Xanadu CDO & CFO • Siobhan Hughes, Ernst & Young Audit Partner are available to answer questions related to the 2024 year-end. For personal use only
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23 Resolution The Resolution will be determined by a poll • Cast vote using the BLUE voting cards The Resolution will be discussed, and questions may be asked at that time The chair will cast all usable open proxies in favor of the Resolution. General questions can be posed after the formal business is concluded. For personal use only
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24 Resolution 1 Re-election of Director – Michele Muscillo “That Mr Michele Muscillo, who retires in accordance with Rule 39.1(c) of the Company’s Constitution and being eligible for election, be re-elected as a Director of the Company.” For personal use only
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25 Resolution 1 Proxy Votes Re-election of Director Proxy Votes received prior to the meeting For Against Open Abstain 762,136,610 422,760,733 390,850 4,513,064 64.29 % 35.67 % 0.4 % For personal use only
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26 Resolution 2 Remuneration Report “That the Company’s Remuneration Report for the financial year ended 31 December 2024 as set out in the Directors’ Report, is adopted.” For personal use only
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27 Resolution 2 Proxy Votes Remuneration Report Proxy Votes received prior to the meeting For Against Open Abstain 925,728,228 122,558,992 390,850 10,949,452 88.27 % 11.69 % 0.04 % For personal use only
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28 General Questions K H A R M A G T A I For personal use only
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ASX:XAM | TSX:XAM Colin Moorhead Executive Chair & Managing Director Spencer Cole Chief Development Officer & CFO P: +61 2 8280 7497 E: info@xanadumines.com Meeting Close For personal use only
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Appendix For personal use only
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The information in this Study that relates to Mineral Resources is based on information compiled by Mr Robert Spiers, who is responsible for the Mineral Resource estimate. Mr Spiers is a full time Principal Geologist employed by Spiers Geological Consultants (SGC) and is a Member of the Australian Institute of Geoscientists. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as the Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Mr Spiers consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this Study that relates to Ore Reserves is based on information compiled by Mr Colin McVie and Mr Simon Grimbeek, who are responsible for the Ore Reserve. Both Mr McVie and Mr Grimbeek are full time Managers and Mining Engineers employed by Mining Plus and are both Fellows of the Australasian Institute of Mining and Metallurgy. They both have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as the Qualified Person as defined i n the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Mr McVie and Mr Grimbeek consent to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this Study that relates to open pit geotechnical analysis for the project has been reviewed by Dr John Player, BEng (Mining) (Hons) MEngSc (Mining Geomechanics) PhD MAusIMM(CP) RPEQ (Geotech). Dr Player is not an employee of the Company but is Director and Principal Engineer with MineGeoTech. Dr Player is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy; has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as the Qualified Person as defined in the C IM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Dr Player consents to the inclusion in this report of the contained technical information in the form and context as it appears. The information in this Study that relates to exploration results is based on information compiled by Dr Andrew Stewart, who is responsible for the exploration data, comments on exploration target sizes, QA/QC and geological interpretation and information. Dr Stewart, who is an employee of Xanadu and is a Member of the Australasian Institute of Geoscientists, has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as the Qualified Person as defined i n the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Dr Stewart consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this Study that relates to processing, metallurgy and metallurgical testwork has been reviewed by Graham Brock, BSc (Eng), ARSM. Mr Brock is not an employee of the Company but is employed as a contract consultant. Mr Brock is a Fellow of the Australasian Institute of Mining and Metallurgy; he has sufficient experience with the style of processing response and type of deposit under consideration, and to the activities undertaken, to qualify as the Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Mr Brock consents to the inclusion in this report of the contained technical information in the form and context as it appears. The information in this Study that relates to marketing and concentrate logistics was reviewed by Albert de Sousa, MAusIMM, BA, Graduate Diploma International Business. Mr de Sousa is not an employee of the Company but is employed as a contract consultant. Mr de Sousa is a member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience the style of mineralisation, type of deposit, and concentrate production and logistics, and to related activities undertaken, to qualify as the Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Mr de Sousa consents to the inclusion in this report of the contained technical and commercial information in the form and context as it appears. The technical and scientific information contained in this document related to Kharmagtai PFS was reviewed by Julien Lawrence, MEngSc (PM), FAusIMM, B Eng Mining (Hons). Mr Lawrence is not an employee of the Company but is employed as a contract consultant. Mr Lawrence is a Fellow of the Australasian Institute of Mining and Metallurgy. He has sufficient experience the style of mineralisation and type of deposit, and to the activities undertaken, to qualify as the Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Mr Lawrence consents to the inclusion in this report of the contained technical information in the form and context as it appears. A P P E N D I X Competent Persons Statements 31 For personal use only
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Copper Equivalence • Calculation consistent with 2023 MRE 32 The copper equivalent (CuEq, eCu) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage with a metallurgical recovery factor applied. Copper equivalent grade values were calculated using the formula: CuEq = Cu + Au * 0.60049 * 0.86667. Where Cu - copper grade (%); Au - gold grade (g/t); 0.60049 - conversion factor (gold to copper); 0.86667 - relative recovery of gold to copper (86.67%). The copper equivalent formula was based on the following parameters (prices are in USD): Copper price 3.4 $/lb; Gold price 1400 $/oz; Copper recovery 90%; Gold recovery 78%; Relative recovery of gold to copper = 78% / 90% = 86.67%. It is the company’s opinion that all the elements included in the metal equivalents calculation have a reasonable potential to be recovered and sold. ASX/TSX Announcement 8 December 2023 – Kharmagtai Mineral Resource Grows by 13% CuEq; Including 25% increase in higher grade zones For personal use only
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Xanadu Mines Ltd is listed on the Australian Securities Exchange and Toronto Stock Exchange. It is a “designated foreign issuer” as defined in National Instrument 71-102–Continuous Disclosure and Other Exemptions Relating to Foreign Issuers and is subject to the regulatory requirements of the Australian Securities & Investments Commission and the Australian Securities Exchange. Designated Foreign Issuer (TSX) 33 For personal use only