08:35 AM EDT, 03/27/2024 (MT Newswires) -- Xanadu Mines Ltd. ( XANAF ) said Wednesday that it has recommenced a 3,700-meter hydrological drilling program for the pre-feasibility study (PFS) on the Kharmagtai project in Mongolia.

The company said the data will be part of a hydrology database for use in site water balance for the final study design, which is assessing growth of up to 40 million tonnes per annum of processing throughput. The final water report is expected in July.

"We are confident in this field program and aim to demonstrate that, to a PFS standard, there is an adequate supply of water for Kharmagtai, to ensure its successful delivery as Mongolia's next major copper-gold mine in the south Gobi region of Mongolia," Executive Chairman and Managing Director Colin Moorhead said.

Separately, Xanadu has started an initial 5,000-meter diamond drilling program at the Red Mountain copper-gold project in Mongolia.

First results from the drilling program are expected in late April.

"We are conducting a systematic exploration program, including diamond drilling, that we expect will provide a new perspective on the mineral potential of the Red Mountain district," Moorhead said.