Xanadu Mines Continues Mongolian Copper Hits

THE DRILL SERGEANT: Xanadu Mines (ASX: XAM) updated the market on the progress of ongoing exploration activities at the company’s Kharmagtai project in the South Gobi region of Mongolia.

Xanadu Mines said the drilling is targeting discovery of additional near-surface porphyry copper-gold deposits undercover while testing for continuity of mineralisation below the current resources within, what it described as being a, ‘largely under-explored porphyry copper-gold district’.

The company claimed that deep drilling at Altan Tolgoi has confirmed continuous high-grade mineralisation at depth, with results including:

KHDDH394
646 metres at 0.51 per cent copper and 0.87 grams per tonne gold (1.06% copper equivalent [CuEq]) from 16m, including 64m at 1.06 per cent copper and 3.15g/t gold (3.08% CuEq) from 18m; and

KHDDH394A
385m at 0.52 per cent copper and 0.6g/t gold (0.9% CuEq) from 351m.

“The intersection of high-grade breccia mineralisation at depth demonstrates the potential size and scale of the Kharmagtai mineralised system,” Xanadu Mines managing director and chief executive officer Dr Andrew Stewart said in the company’s announcement to the Australian Securities Exchange.

“We are yet to define the extents of the Altan Tolgoi porphyry system, and further drilling is planned below the zone of breccia hosted chalcopyrite-gold mineralisation to test whether a higher-grade bornite core is in the root zones of this large breccia system.

“High-grade mineralisation may be manifested as bornite-goldcemented breccia or as bornite-gold stockwork mineralisation in the causative intrusive complex at Kharmagtai.”

Xanadu claimed the mineralisation identified within the resource shell by the drilling to be better than, or similar to, the project’s current resource estimate.

The high-grade breccia hosted chalcopyrite‐gold mineralisation, as identified by the current drilling results, remains open at depth.

Xanadu said widespread near-surface copper and gold mineralisation has been intersected in the bedrock drilling while six potential porphyry clusters have also been identified, containing 19 individual porphyry and epithermal targets.

Further drilling at the Altan Burged prospect intersected additional and substantial broad zones of near-surface gold-rich porphyry mineralisation, including:

KHDDH401
20m at 1.73g/t gold and 0.18 per cent copper from 39m.

Xanadu said drilling at Altan Burged has continued to define the size and shape of the newly-discovered porphyry centre.

Seven diamond drill holes have been completed, which have defined a large scale porphyry system, approximately 250 by 150 metres wide.

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