THE DRILL SERGEANT: Xanadu Mines (ASX: XAM) is conducting an exploration program targeting extensions of high-grade copper and gold mineralisation along strike and below current resources at the company’s Kharmagtai copper and gold project located in the South Gobi region of Mongolia.
Xanadu Mines recently carried out drilling on the Stockwork Hill deposit, which it claims to confirm high-grade extensions below the current resource.
230 metres at 0.5 per cent copper and 0.91 grams per tonne gold (1.09 per cent copper equivalent (CuEq)) from of 574m, including 117.5m at 0.76 per cent copper and 1.63g/t gold (1.8% CuEq) from 624.5m, including 71.2m at 0.92 per cent copper and 2.33g/t gold (2.41% CuEq) from 684m.
The company said that increasing bornite mineralisation down hole indicates the drilling is nearing the higher-grade core of the deposit.
The drilling suggests that he Stockwork Hill and White Hill systems begin to merge at depth, which Xanadu believes could increase resource potential.
Other drilling carried out at Target 19 encountered porphyry mineralisation and has confirmed the deposit as a new shallow porphyry copper discovery, 1.5 kilometres west of White Hill.
213.4m at 0.23 per cent copper and 0.17g/t gold (0.34% CuEq) from 86m, including 130.3m at 0.29 per cent copper and 0.22g/t gold (0.43% CuEq) from 130m, including 16m at 0.47 per cent copper and 0.39g/t gold (0.72% CuEq) from 200m.
Mineralisation at Target 19 remains completely preserved at depth, again indicating resource potential.
Xanadu said the results continue to confirm the Kharmagtai project as a district scale trend with potential to host further copper-gold discoveries.
Xanadu signalled its intention to resume exploration drilling of high-grade gold and copper targets at its Red Mountain project in March.
“What really sets our geology team apart from other explorers is our porphyry copper expertise, which is demonstrated in this new round of results where extensional drilling has significantly increased the footprint of the Kharmagtai porphyry system and where we continue to add high-grade tonnes to the existing resource,” Xanadu Mines managing director and CEO Dr Andrew Stewart said in the company’s announcement to the Australian Securities Exchange.
“We are particularly excited in the latest scout drilling at Target 19 where we have intersected broad zones of new copper porphyry mineralisation 1.5 kilometres west of the large White Hill deposit.
“This could provide another shallow, low strip ratio discovery within the district.”