Xanadu Mines (ASX:XAM) is eyeing an expansion of the ‘higher-grade’ core of a ‘significant’ new gold zone at the Golden Eagle deposit within its Kharmagtai Project in Mongolia.
The $108 million market capitalisation company is conducting additional drilling to map the geometry of this newly discovered zone in 3 dimensions, with 5 infill drillholes planned.
Once this geometry is defined, Xanadu says an expansion of a ‘higher-grade’ core is possible.
Xanadu discovered the new zone of shallow hypogene gold mineralisation through an infill drilling program at Golden Eagle. Drillhole KHDDH691 intersected 205.3m @ 0.44g/t gold (Au) and 0.14% copper (Cu) from 37.7m.
The company says the ‘high-grade’ intercept relates to a zone of unidirectional solidification textures (USTs), found at the top of an intrusion, where gold- and copper-rich fluids can accumulate.
Xanadu Mines Managing Director and Executive Chairman Colin Moorhead says the discovery is a ‘significant’ step that adds to the previously known gold resources in the area and improves the economics of the planned Golden Eagle open pit.
“This form of mineralisation generally indicates a larger porphyry intrusion of metals below, and we are adapting the Golden Eagle exploration program to target that model.
Additional infill drilling is currently underway to expand this new zone and understand its size and shape.”
“This form of mineralisation generally indicates a larger porphyry intrusion of metals below”
The drill program was undertaken with Xanadu’s joint venture partner, Zijin Mining Group.
Xanadu Mines is scheduled to exhibit at the upcoming International Mining and Resources Conference (IMARC) held in Sydney from 31 October to 2 November 2023. Mining.com.au is an official media partner of IMARC, which will showcase 470-plus mining leaders and resource experts throughout 7 concurrent conferences.
Xanadu Mines is a dual-listed copper and gold explorer operating in Mongolia. As of 30 June 2023, the company had $5.077 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Xanadu Mines
