You are expert with multiyear experience in the area. What companies and countries have you worked with so far? Please share your experience with us?I’ve been the Chairman of Xanadu Mines since founding the company in 2005. I’ve also been an adviser to the mining sector in Australia, Indonesia, and the Pacific Rim for the last 25 years. Thishas included some of the largest ASX listed gold, base metals, coal companies such as Macarthur Coal, Talbot Group, Straits Group, Goldfields, Anglo Gold Ashanti and Goldfields.
Why “Xanadu Mines” decided to expand its operation to Mongolia? What was the best reason to choose Mongolia?We saw Mongolia as a land of great opportunity both because of its natural and largely untapped, endowment of mineral resources, and its proximity to the burgeoning markets of China and North Asia.
Have you been to Mongolia many times? What was your first impression about Mongolia when you landed? What change do you see each time when you come to Mongolia?Since 2005, I’ve visited Mongolia up to six times each year, and I’ve seen a lot of changes over that time. At first, I was overwhelmed by the sparseness of the landscape and the acute differences in the standard of living to my native Australia. Over those last six years Mongolia has changed dramatically, largely due to the influx of foreign investment and foreign tourists and business people. Now we see both cultural and economic influences from outside of Mongolia coming into play, which will positively influence economic,social and politicaldevelopment.
How do you value opportunities of investments coming to Mongolia? Name the positive and negative sides. What is missing for the international investors? What investment risks are occurring?Mongolia is still largely unexplored and offers world class potential exploration targets in gold, copper, coal and uranium. On the negative side, the Mongolian Government has the right to change the tax and licensing environment for exploration and mining companies which can undoubtedly affect investment sentiment. Having said that, the Mongolian Government is also moving quickly to reform and modernise its legal,bureaucratic and institutional frameworks, and has come out in strong support of the mining industry.
How do you see the future of your projects in Mongolia? How are you planning further operation? Where is your operation expanding to?We have an overwhelmingly positive outlook for Mongolia and hence our projects as the country develops and living standards and infrastructure improve. These developments, particularly those related to infrastructure such as rail and power, will further enhance growth across a range of sectors, including agriculture services and manufacturing.
In regard to the expansion of Xanadu’s operations, this will be dictated by our exploration success. We have the advantage of being well funded and flexible, with a highly skilled team of geologists and technical people on the ground in Mongolia. This means that we can respond quickly on exploration opportunities and start programs without being weighed down by a lot of bureaucracy.
What is your advantage and specialty that differs you from the other companies in the same market?I think its about commitment and respect. We are a very focused coal and copper gold exploration business and have a highly skilled, flexible team which can respond quickly to opportunities. We have a six year track record, avery experienced world class Mongolian team with cultural know how and understanding. Of our 28 strong team in Mongolia, 26 are native Mongolians. Additionally, Xanadu is strongly backed by significant international and institutional investors who support our exploration program and the broader Mongolian opportunity.
Does “Xanadu Mines” have a plan to expand from the exploration to the next step?Yes, we do, while we are fundamentally an exploration driven business, our aim is to develop assets in partnership with Noble on coking coal and copper and gold in our own right.
Introduce the projects that you put most consideration and faith?Sharchuluut is Xanadu’s 100% owned copper-gold porphyry project in the Northern province of Bulgan, 40km northwest, and along strike, from the world-class Erdenet porphyry copper-molybdenum deposit. We have just completed a detailed geophysics program at this project. Based on the results to date, Xanadu believes is hopeful of discovering a large porphyry copper ore body within the 488km² exploration license. Exploration drilling is scheduled to commence in April 2012.
Nuurstei is 50% owned by Xanadu as part of the Xanadu-Noble joint venture. It comprises two contiguous licenses in the Khuvsgul province and is strategically located only 8km from the proposed Northern Mongolian rail line to Erdenet. We have just completed scout drilling and the initial raw coal wash results indicate a premium quality coking coal is present at Nuurstei.
Elgen-Zos-Suug is our epithermal gold project located in Southern Mongolia. This is our most exciting gold project in the S E Gobi and only 40kms from the China border. We have identified a large gold system over 3 licences which will need an intensive drilling campaign in 2012.
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You are expert with multiyear experience in the area. What companies and countries have you worked with so far? Please share your experience with us?