Exploration minnow Xanadu Mines Ltd says it has acquired the Mogoin Gol copper prospect, covering 488 square kilometres, in northern Mongolia.
The Mogoin Gol project is 40km northwest of the producing Erdenet deposit, which produces 530,000 tonnes per annum of copper concentrate and delivers it into Russia and China via the Trans Mongolian railway.
“Following extensive due diligence, it is Xanadu’s view that the Mogoin Gol project is one of the best untested porphyry copper targets in Mongolia, having been subject to minimal drill testing almost a decade ago,” chairman Brian Thornton said in a statement on Wednesday.
The copper market is currently underpinned by demand from China, which is expected to grow by 25 per cent from 6.8 mtpa in 2010 to more than 8.5 mtpa in 2015, Xanadu says.
Source: The Bull