Ann: Two Diamond Drill Rigs Target High-Grade Bornite Zones, page-20

To cement its status as a genuine Tier One project, Moorhead wants to see Kharmagtai with a resource of at least 1 billion tonnes at a grade of at least 0.5% CuEq.Ideally included in that would be a high grade core of 100Mt or so at a grade of at least 0.8% CuEq, which would provide a point of differentiation from other porphyry projects globally.Ross holds a similar view, saying that resource growth will be critical to attracting another party to help fund development or as a buyer of the project outright.“Future value growth for Xanadu is largely dependent on eventual advancement of the Kharmagtai project to mine,” he said. “When progressed, Kharmagtai will be a large-scale development, with expensive upfront capital costs.“To attract a suitable partner, the project needs to be bigger and ideally higher grade. We speculate an inventory of 4-5Mt CuEq metal might be enough to attract a suitable partner.“This increase could either be achieved through further definition of shallow resources or identification of deep lying bulk tonnes with suitable characteristics for block cave mining.