Following the discovery of potentially significant outcropping quartz-sulphide vein and breccia mineralisation at Oyut Ulaan, Xanadu has undertaken systematic geological mapping and rock chip sampling.
Gathering rock samples at one of Xanadu’s prospects in southern Mongolia.
There were 157 rock chip samples collected from outcropping and sub-cropping veins across three main zones. The majority of samples returned highly anomalous values with 57.9% of samples grading more than 1 g/t. A total of 56 samples returned grades high than 10 g/t and eight samples returned more than 100 g/t.
The sampling has confirmed the existence of outcropping high grade gold mineralisation occurring within at least three sub-parallel structural zones with 1.5km of each other.
The majority of the new results are from sampling surface outcrops and sub-crops that occur south of known porphyry mineralisation at Diorite Hill and Stockwork Hill, and the style of mineralisation indicates a potential link between known gold-rich porphyry copper mineralisation and newly discovered veins.
Xanadu’s CEO Andrew Stewart says, “It is very exciting to collect true bonanza gold grades from newly discovered mineralisation at Oyut Ulaan. We had the belief the geology displayed all the ingredients required for significant shallow high grade gold mineralisation, which has been confirmed by this surface sampling. The team is now developing plans for accelerated exploration as there is tremendous scope for a very significant discovery in this area. Oyut Ulaan is developing into one of the most prospective districts in the South Gobi with a series of prospects at different stages of exploration.”
Xanadu will continue its systematic, low cost exploration at Oyut Ulaan with reconnaissance exploration, field mapping, and infill sampling ongoing. A detailed trenching/channel sampling program was initiated to better understand the nature and extent of the gold mineralisation.
Results from trench channel sampling are expected in early May 2016 and Xanadu expects to bring the new defined gold prospects to drill-ready status over the coming quarter.
Meantime, exploration is also focusing on Xanadu’s flagship Kharmagtai copper-gold project, where outstanding results since acquisition are helping refine the geological model and further demonstrate Kharmagtai is growing towards a sizeable porphyry deposit, with relatively high gold to copper ratios. Exploration drilling continues to test a combination of targets.