XANADU Mines has ramped-up the second phase of exploration at its Oyut Ulaan Gold Project in the South Gobi region targeting recently discovered shallow high-grade epithermal gold veins. The accelerated program includes around 65 shallow holes for approximately 3000 metres of drilling.
The company is testing strike and vertical extensions of the high-grade mineralisation intersected in broad spaced reconnaissance drilling and surface trenching.
|Outcropping porphyry stockwork mineralisation at Xanadu Mines’ Oyut Ulaan project in southern Mongolia.|
High-grade epithermal mineralisation at Oyut Ulaan has been identified in at least four areas that occur within a prospective area of mineralisation that is 4.5km long and 300 metres wide - Stockwork, Bavuu, Diorite and Hulan zones.
Xanadu’s executive director and CEO Dr Andrew Stewart said, “With multiple near-surface gold targets, Xanadu has decided to fast-track exploration at Oyut Ulaan with an accelerated program, which includes an extensive drill program, continued regional trenching, extensive soil and regional sampling, metallurgical test work and preliminary economic evaluations.
“This comprehensive program will go a long way to characterising the discovery and allow assessment of the potential for a simple, low-cost mining operation at Oyut Ulaan which could generate meaningful cash flow.”
He says that following site visits and detailed technical review of the outstanding initial exploration results with expert narrow vein mining consultants, the Oyut Ulaan project is at the stage that it has clear scope to become a very meaningful gold project.
Based on this work, the company has committed approximately A$650,000 towards advancing the shallow high-grade gold discovery over a four month period until the end of January 2017.
The main drilling objective is to investigate the continuity and thickness of gold mineralisation immediately below surface trenching at Bavuu and Diorite zones. Xanadu expects to complete 25 to 30 diamond holes and 30 to 35 RC drill holes.
While the Kharmagtai Copper-Gold Project, with its scale and growing JORC copper-gold resource, remains the company’s priority project, the high-grade nature of the near-surface Oyut Ulaan mineralisation, along with the current gold price and ability to add significant value with modest exploration expenditure, makes it a particularly attractive second project.
A very favourable development and pro-mining environment in Mongolia would allow rapid advancement of the project with continued positive results.
After a recent successful capital raising, Xanadu is in a strong financial position to rapidly advance its Kharmagtai and Oyut Ulaan projects simultaneously.