Exploration drilling is set to begin next month at Xanadu Mines’ Sharchuluut Uul porphyry copper project in Mongolia’s Bulgan province.
Xanadu has appointed Major Drilling Mongolia as drill contractor to undertake the first phase of the diamond and reverse circulation program over 6000 metres.
Sharchuluut Uul is about 230km northwest of Ulaanbataar and 30km northwest of Mongolia’s largest producing copper deposit at Erdenet, which has an estimated mineral resource of 2370 million tonnes @ 0.38% copper and 0.13% molybdenum. The project is made up of five porphyry-related prospects which occur within the central part of the 488sqkm licence area, most of which remains unexplored.
Australian-listed company Xanadu acquired the project in March 2011 and has since conducted extensive geological mapping, rock chip sampling and detailed ground geophysics over the area. The porphyry copper mineralization and porphyry related lithocaps contained within Sharchuluut Uul are characteristic of other high grade porphyry copper belts.
The company’s chairman Brian Thornton says, “The project represents a compelling copper exploration opportunity in a world-class porphyry district which will be subjected to an intensive diamond drilling program in 2012. “Xanadu is fortunate to have exposure to this brownfields copper opportunity, close to rail and infrastructure at a time of robust copper prices.”
The company’s goal is to target metals and coking coal opportunities in the Trans-Mongolian rail corridor or within close proximity to Russian and Chinese borders.