DRILLING by Xanadu Mines at the Kharmagtai Copper-Gold Project has returned the highest grade copper mineralization discovered to date within the project. One hole intersected a significant zone of 50 metres of very high-grade breccia hosted massive sulphide mineralization within a broad zone of more than 415 metres of porphyry-related mineralization.
Assays from this hole returned 50 metres from 374 metres grading 1.84% copper and 0.73 grams/tonne gold, or 2.31% copper equivalent, including 27 metres from 384 metres @ 2.55% copper and 0.94 grams/tonne gold, or 3.15% copper equivalent.
The massive sulphide mineralization is flanked by a broad zone of porphyry-related breccia mineralization with the best result being 415.2 metres from 88.8 metres @ 0.63% copper and 0.24 grams/tonne gold, or 0.79% copper equivalent, including 243.8 metres from 242.2 metres @ 0.81% copper and 0.32 grams/tonne gold, or 1% copper equivalent.
The discovery resulted from systematic drill testing of high priority targets lying under shallow cover along strike from existing deposits within Kharmagtai. The hole reported above tested the northern limits of known mineralization and intersected high grade mineralization outside the previously interpreted boundary. This higher grade portion of the tourmaline breccia mineralization is open to the north.
Follow-up drill testing and trenching along strike and up dip is under way to determine whether this newly discovered zone is a single, continuous body or a series of related high-grade bodies localized along a favourable structural corridor.
Xanadu’s chief executive officer Andrew Stewart says, “These outstanding results support Xanadu’s interpretation that the porphyry-breccia complex at Kharmagtai has the potential to be a significant copper-gold system with similarities to other very strongly mineralized tourmaline breccia deposits globally.”
Until late June Xanadu had completed 11 diamond holes in a program that began in late April. Drilling is focusing on defining near-surface strike extensions of current deposits and investigating several high priority targets laying under shallow cover that have the same geophysical response and geometry as existing deposits within the project.
Drilling has provided significant advances in Xanadu’s understanding of the project and indicates potential for a large-scale porphyry copper-gold system with multiple shallow gold-rich zones, similar to others in the South Gobi region, such as Oyu Tolgoi.
Xanadu and joint venture partner Mongol Metals announced the acquisition of a 90% interest in the Kharmagtai project from Turquoise Hill Resources in February 2014. Xanadu has the right to earn an 85% interest by funding acquisition and exploration costs.