Xanadu Mines (ASX:XAM) reports it has uncovered gold in initial trenching results at its Red Mountain project located within the Dornogovi Province of southern Mongolia, approximately 420km southeast of Ulaanbaatar and 70km west of the provincial centre of Sainshand.
Assays have been returned at Target 33 (T33) for approximately 1,170m of trenching over 7 trenches, targeting an area of ‘high-grade’ gold identified in previous trenching and drilling.
Assay results returned ‘broad’ zones of anomalous gold, associated with felsic intrusive and strong alteration.
When combined with previous work at Target 33, these new results expand upon the previous ‘broad, highly anomalous’ gold zone at surface to a current interpretation of approximately 350m long and 80m wide, including a ‘higher-grade’ core greater than 1g/t Au.
This anomalous gold zone remains open to the west and will be investigated through a drill program to stab holes designed to test approximately 50m below this zone in multiple sections.
Significant intercepts include OUTR109 with 66m @ 0.37g/t Au from 26m, including 18m @ 0.81g/t Au from 50m, including 10m @ 1.23g/t Au from 58m.
Xanadu is undertaking a disciplined and systematic exploration program, which includes detailed geological work, 3D geophysical and geochemical modelling, trenching to test strike extend and develop drill targets, and a drill program focused on shallow gold, silver and copper targets.
Surface trenching has proven to be a rapid and economic target definition approach prior to diamond drilling, and this program will include extensive trenching over several new gold, silver and copper targets.
Xanadu Mines Executive Chairman and Managing Director Colin Moorehead said the results from trenching are encouraging.
“We are encouraged by this solid start to the Red Mountain trenching program.
“We are encouraged by this solid start to the Red Mountain trenching program”
“Initial results from T33 outline a zone of strongly anomalous gold at surface that extends for 350m along strike and 80m wide.”
Xanadu’s Red Mountain porphyry copper-gold-silver project is located in southern Mongolia, and the project has a granted 30 year mining licence and comprises an underexplored porphyry district covering approximately 57km-square.
Red Mountain mineralisation is associated with late-stage monzonite and quartz diorite porphyry dykes and stocks emplaced on the flanks of the Red Mountain Intrusive Complex.
This consists of multiple co-genetic porphyry gold and copper centres, mineralised tourmaline breccia pipes, gold and copper base metal magnetite skarns and epithermal gold veins.
Previous exploration at Red Mountain has defined several broad zones of strongly mineralised quartz stockwork veining associated with high-grade gold and increasing alteration strength, with the mineralisation style suggesting strong likelihood for depth extensions.
Shallow gold-rich and silver-rich copper mineralisation has been identified in numerous zones, located within a 4.5km long and 300m wide prospective mineralisation zone.
This mineralisation is primarily located in Bavuu, Stairy, Diorite, T33, Nowie, and Stockwork.
Broad spaced drilling has confirmed gold mineralisation is hosted by hematite-quartz veins with coarse visible gold, occurring as multiple stacked arrays.
Veins are typically narrow, but ‘very high-grade’ gold assays from 1g/t to 30g/t Au over widths of 0.5m to 1.5m.
Mineralised veins are characterised by banded and crustiform quartz and abundant sulphides.
All of these features are commonly found in the lower boiling zone of epithermal system, where ‘bonanza’ grades are expected.
In addition to shallow, ‘high-grade’ mineralisation, Red Mountain has potential for large-scale porphyry at depth.
Highly anomalous geochemistry corresponds to broad zones of porphyry mineralisation from trenching, zoned porphyry alteration, overlapping with large-scale magnetic and gravity anomalies representing a compelling string of very large porphyry targets over 6km strike.
Initial deeper drilling in 2017 encountered 200m to 300m wide zones of porphyry style mineralisation at Target 10.
Xanadu Mines is an ASX and TSX listed Exploration company operating in Mongolia. The company provides investors exposure to ‘globally significant, large-scale’ copper-gold discoveries and ‘low-cost’ inventory growth.
Xanadu maintains a portfolio of exploration projects and remains one of the few junior explorers on the ASX or TSX who control a ‘globally significant’ copper-gold deposit at its flagship project.
Images: Xanadu Mines Ltd
