A supplementary drilling program at Xanadu Mines’ Kharmagtai Copper-Gold Project in the South Gobi region has extended the centres of known high-grade mineralization and confirmed a new porphyry centre. Drilling continues to increase the scale and potential of this large copper-gold system with multiple near-surface, gold-rich centres, including Altan Tolgoi and Zesen Uul.

One hole tested the northern extension of the Altan Tolgoi stockwork zone and intersected mineralization from surface to a depth of 626.5 metres. The hole intersected a 160 metre higher grade section grading 0.65% copper and 0.56 grams/tonne gold from 14 metres within a 315 metre-wide zone of shallow stockwork higher grade mineralization grading 0.47% copper and 0.37 grams/tonne gold from 0.3 metres.

This hole intersected mineralized tourmaline breccia at approximately 310 metres which continued to the end of hole, demonstrating the continuity of the tourmaline breccia system below the shallow stockwork mineralization.

Another hole targeted mineralization at East Altan Tolgoi and intersected 102 metres of higher grade tourmaline breccia grading 0.56% copper and 0.62 grams/tonne gold from 540 metres. This result confirms the continuity of broad zones of very significant copper-gold mineralization hosted in tourmaline breccias at East Altan Tolgoi.

Xanadu’s understanding of the mineralization within the tourmaline breccia unit is improving with further drilling and analysis. Its grade profile appears to be zoned vertically, from barren or weakly mineralized tourmaline breccia near the top of the unit and with chalcopyrite and chalcopyrite-gold cemented breccia at increasing depths. The company is targeting areas where the lower part of this unit is close to surface.

Another hole tested the western extension of the high-grade Southern Stockwork at Altan Tolgoi which contains a high-grade bornite core. The south-western flank of this shear zone has only been tested at shallow levels on the southern half of the prospect. The off-faulted high-grade porphyry mineralization is interpreted to lie at depth.

The hole was designed to test for the off-vaulted high-grade mineralization and test the western extension of the prospect where high-grade mineralization remains narrow but open. The hole intersected 44 metres @ 0.12% copper and 0.41 grams/tonne gold from 40 metres associated with disseminated bornite mineralization. Although weak, the style of mineralization and presence of bornite indicates proximity of another stockwork zone.

A number of high potential magnetic anomalies are located in the unexplored eastern part of the property. Another two holes targeted Pigeon, a buried anomaly about 2km east of Tsagaan Sudal. One hole intersected 32 metres @ 0.51% copper and 0.56 grams/tonne gold, This was associated with tourmaline breccia mineralization showing that grades in the breccia can be high and the mineralized zones can be shallow.

The other hole intersected low density stockwork mineralization from 195.7 metres to an end of hole depth of 529.3 metres. This hole has confirmed the presence of a new porphyry centre about 2km along strike from the Tsagaan Sudal prospect and indicates potential for a large-scale copper-gold system.

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