08:08 AM EDT, 04/23/2024 (MT Newswires) -- Xanadu Mines ( XANAF ) reported Tuesday positive results from a metallurgical testwork for the Kharmagtai copper-gold project in Mongolia.

The Eriez HydroFloat test work for evaluating coarse ore flotation demonstrated excellent results for one of the key uplift scenarios defined in a scoping study, Xanadu said. The test work effectively improved upfront processing efficiencies, producing a coarse reject of up to 44% by mass for the main mineralized sulfide orebody.

Xanadu said coarse ore flotation may offer benefits for Kharmagtai, including reduced power and water consumption, increased mill capacity and improvement in tailings stability.

"These results provide strong support for our scoping study uplift scenario using coarse ore flotation to improve overall project economics," Executive Chairman Colin Moorhead said. "This uplift is achieved through increasing throughput and accelerating mining and processing rates which ultimately accelerate revenue generation at Kharmagtai."

The company's shares dropped 7.7% yesterday.