Deep drilling by Xanadu Mines at the Stockwork Hill deposit of the Kharmagtai Copper-Gold Project in southern Mongolia has identified extensions of high-grade mineralisation along strike and below the current resource. The latest results from two holes have confirmed the discovery of two new zones of mineralisation.

The Stockwork Hill deposit consists of composite porphyry intrusions hosting high-grade gold-rich porphyry copper mineralisation approximately 800 metres long, 400 metres wide and extending to a depth of at least 600 metres.

One hole targeted offset copper-gold mineralisation referred to as the Northern Step-down Target. It intersected 76 metres of continuous stockwork mineralisation from a depth of 585 metres grading 0.50% copper and 0.44 g/t gold, which included 34 metres @ 0.6% copper and 0.75 g/t gold from 621 metres.

A strongly mineralised diorite intrusion encountered in the lower portion of this hole and below the External Scrutinizer Fault confirms the Northern Stockwork zone of the Stockwork Hill deposit extends approximately 200 metres to the north of current resource model.

Another hole targeting the Southern Lobe Target, where mineralisation was interpreted to have been offset to the south from the main deposit intersected 294 metres of continuous high-grade stockwork and tourmaline breccia mineralisation from 466 metres grading 0.47% copper and 0.85g/t gold, which included 86 metres @ 0.78% copper and 1.91 g/t gold from 558 metres.

Significant bornite mineralisation hosted in a diorite intrusion suggests this new zone of mineralisation is closer to the high-grade core of the system.

Further drilling is under way to expand this new zone of high grade mineralisation by deepening several shallower holes above and along strike of both targets.

Xanadu’s managing director and CEO Dr Andrew Stewart said, “We are excited that the Southern Lobe hole successfully demonstrated a clear extension of high-grade mineralisation along strike and at depth outside the current resource model.

“We are particularly excited with the new results from this hole which has discovered a new zone of gold-rich copper porphyry mineralisation, representing the downthrown block of the main Stockwork Hill deposit. Based upon detailed modelling, this new zone of mineralisation remains open in all directions.

“We have not yet found the limits of mineralisation and we believe that our growing understanding of the system will lead to rapid discovery of more major extensions. The high-grade extensions we have identified provide the opportunity to assess Stockwork Hill as a potential underground resource that has the potential to deliver significant additional value to the project.”

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