Xanadu Mines

Xanadu announces ‘large scale’ deposit extension at its Kharmagtai copper-gold project

Xanadu Mines Ltd (ASX: XAM, TSX: XAM) has reported a ‘large scale’ extension to mineralisation at the White Hill deposit within its Kharmagtai copper-gold project in Mongolia, following an exploration program focusing on porphyry copper and gold deposits.

Assay results have been returned for three diamond drill holes covering the White Hill, Zaraa and Stockwork Hill deposits.

Drilling summary

Hole KHDDH569: Large-scale extension to known mineralisation was reported at White Hill.  Drill hole KHDDH569 extended the southern flank of the White Hill deposit by 300m and represents a material increase in tonnage over the current resource.

Hole KHDDH570: Drill hole KHDDH570 was drilled on the eastern margin of the Zaraa deposit to complete the data acquisition for the maiden mineral resource estimate for Zaraa. KHDDH570 encountered over 700m of mineralisation. Work has commenced on a maiden mineral resource estimate for Q4 of 2021.

Hole KHDDH571: Stockwork Hill drill hole KHDDH571 targeted the western compartment of the bornite zone. The DD hole KHDDH571 encountered a broad shallow zone of low-grade mineralisation. It passes between higher grade bornite compartments on Fifty-Fifty Fault, revising high-grade targeting program.

Kharmagtai project

The Kharmagtai copper-gold project is located in Omnogovi Province, approximately 420km southeast of Ulaanbaatar in Mongolia, and is home to four large-scale porphyry deposits.

The company has a three-pronged strategy of discovery, high-grade definition, and resource expansion. Xanadu’s goal is to target an increase of the combined Kharmagtai mineral resource to >1 billion tonnes @ ≥0.5% copper equivalent (eCu) including >100 million tonnes @ ≥0.8% eCu.

Long section of Kharmagtai displaying known mineralisation
Long section of Kharmagtai displaying known mineralisation

Next steps

Exploration at Kharmagtai is ongoing, with three rigs testing extensions to White Hill and Zaraa and high-grade zones at Stockwork Hill.

Management comments

Xanadu Mines Chief Executive Officer Andrew Stewart said: “June delivered significant results. At White Hill, KHDDH569 added more than 300m of mineralisation to the south, which is a significant increase in copper tonnage and moves Xanadu closer to our >1 billion tonne objective.

At Stockwork Hill, KHDDH571 indicates the high-grade Bornite zone has a larger offset on either side of the Fifty-Fifty fault, which refines our models as we zero in on our >100 million tonne high grade objective.”

Images: Xanadu Mines Ltd
Written By Tristan Gray
Originally from Canada, Tris trained as a journalist but early in her career moved into marketing and advertising. Tris now spends her days managing the mining.com.au systems and processes while overseeing all company operations.