Deep drilling by Xanadu Mines at the Altan Tolgoi deposit of the Kharmagtai Copper-Gold Project in Mongolia has confirmed significant continuous high-grade mineralisation. The drilling is targeting the discovery of additional porphyry copper-gold deposits undercover and testing the continuity of mineralisation below the current resources.

One drill hole intersected 646 metres from 16 metres @ 0.51% copper and 0.87 g/t gold, or 1.06% copper equivalent, including 64 metres from 18 metres @ 1.06% copper and 3.15 g/t gold, or 3.08% copper equivalent. This represents the best intersection so far drilled at Kharmagtai.

Another hole intersected 385 metres from 351 metres @ 0.52% copper and 0.60 g/t gold, or 0.9% copper equivalent.

Xanadu says that the mineralisation identified within the resource shell is better than, or similar, to the current resource estimate. The high-grade breccia hosted chalcopyrite-gold mineralisation, as identified by the current drilling, remains open at depth.

The company says that widespread near-surface copper and gold mineralisation has been intersected in an undercover bedrock drilling program over the Kharmagtai district. Six potential porphyry clusters have been identified, containing 19 individual porphyry and epithermal targets. Two undercover targets are currently being drilled/

Drilling has also intersected additional and substantial broad zones of near-surface gold-rich porphyry mineralisation at Altan Burged deposit. One hole intersected 20 metres from 39 metres @ 1.73 g/t gold and 0.18% copper.

Targeting work continues at Oyut Ulaan and drilling is planned to commence shortly targeting both gold-rich copper porphyry deposits and near-surface high-grade epithermal gold.

Xanadu’s managing director and CEO Andrew Stewart said, “The intersection of high-grade breccia mineralisation at depth demonstrates the potential size and scale of the Kharmagtai mineralised system.

“We are yet to define the extents of the Altan Tolgoi porphyry system and further drilling is planned below the zone of breccia hosted chalcopyrite-gold mineralisation to test whether a higher grade bornite core is in the root zones of this large breccia system.

“High-grade mineralisation may be manifested as bornite-gold-cemented breccia or as bornite-gold stockwork mineralisation in the causative intrusive complex at Kharmagtai.”

www.xanadumines.com

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