FOLLOWING a successful 2014 exploration program Xanadu Mines’ 2015 program will cover the Kharmagtai and Oyut Ulaan copper-gold projects. The company has started field activities at Oyut Ulaan where it found outcropping high-grade gold and copper during initial works in 2013.
The new program commenced earlier than expected due to favourable weather conditions in Mongolia. The program will include approximately 2000 metres of surface trenching plus the acquisition of high-resolution ground magnetics and induced polarization data.
Oyut Ulaan is within Dornogovi Province of southern Mongolia, about 420km southeast of Ulaanbaatar. It is within the South Gobi Copper Belt and 260km east of Xanadu’s Kharmagtai project. It consists of multiple co-genetic porphyry copper-gold centres, mineralized tourmaline breccia pipes and copper-gold/base metal magnetite skarns, which occur within the central part of the licence.
Xanadu plans to investigate two of the most prospective areas of mineralization, Diorite Hill and Stockwork Hill, in the first part of the program.
Mineralization remains open at depth and along strike at both prospects. Weakly malachite stained outcrops and rare quartz veins indicate that Diorite Hill prospect may continue for 300 metres along strike to the northeast of current drilling. Quartz veins also outcrop 400 metres to the east of current drilling at Stockwork Hill.
The large areas of tourmaline breccia that crop out at Oyut Ulaan are yet to be drill-tested and if they are mineralized at depth, then a significant increase in the resource potential of the district is predicted.
The current exploration program has been designed primarily to test potential extensions to high-grade porphyry mineralization along strike from the Diorite Hill and Stockwork Hill prospects and test the outcropping variably mineralized breccia dyke complex. The program has been developed around a realistic geological model and will contribute to defining a shallow resource estimate at Oyut Ulaan.
Xanadu’s chairman Mark Wheatley says, “Oyut Ulaan is a very exciting prospect. Our last exploration program at Oyut Ulaan encountered spectacular results including multiple intersections with economic grades of copper-gold mineralization from surface. It represents a great opportunity for Xanadu to utilize its local experience to explore for a large deposit, close to surface and of economic grade.
“Xanadu is in the highly attractive position of having two excellent project opportunities located in one of the world’s most prospective regions and the funds to explore them.”