Xanadu releases maiden Kharmagtai Resource

THE DRILL SERGEANT: Xanadu Mines (ASX: XAM) has completed a JORC 2012-compliant maiden Mineral Resource Estimate for the company’s Kharmagtai copper-gold project, located within the South Gobi porphyry copper province of Mongolia.

Xanadu bragged the Resource had been calculated within 12 months since the company’s acquisition of the project.

The Kharmagtai project is a joint venture between Xanadu Mines and Mongol Metals LLC.

Under the JV terms, Xanadu has the right to earn an 85 per cent interest in the Kharmagtai project, equivalent to a 76.5 per cent effective interest, by funding acquisition and exploration costs.

The maiden Mineral Resource Estimate for the Kharmagtai project amounts to 203 million tonnes at 0.34 per cent copper and 0.33 grams per tonne gold (0.55 per cent copper equivalent [CuEq]) for a contained metal content of 1,500 million pounds copper and 2.2 million ounces of gold.

Xanadu explained the Mineral Resource was based on a total of 108,130 metres of drilling (83,577 metres of diamond and 24,553 metres of Reverse Circulation) and includes Indicated Resource categories as well as Inferred classified material.

The Resource Estimate also includes a higher grade core of 56 million tonnes at 0.47 per cent copper and 0.59g/t gold (0.85 per cent CuEq) for a contained metal content of 580 million pound copper and 1.1 million ounces of gold.
 
The higher grade core is reported at a 0.6 per cent CuEq cut‐off.

“Xanadu is very proud to be delivering a Maiden Mineral Resource Estimate within a year of its acquisition,” Xanadu Mines CEO Andrew Stewart said in the company’s announcement to the Australian Securities Exchange.

“The Kharmagtai copper-gold project is progressing towards economically viable sized porphyry tonnage with relatively high gold to copper ratios and discoveries of such gold-rich porphyry copper deposits are rare.

“This exploration and the rapid conversion to a Maiden Mineral Resource is the result of a great team effort – both within Xanadu and together with our service providers.

“We will continue with our efforts to grow the Kharmagtai Mineral Resource, to find additional mineralisation within the Kharmagtai Intrusive Complex and to test the other targets within the large district, which have the same geophysical response and geometry as existing resources within the KIC with the aim of unlocking the full potential of this under explored porphyry district.”

Website: www.xanadumines.com