XANADU Mines will spend more than A$4.5 million on exploration across its porphyry copper-gold projects in the South Gobi porphyry belt in 2017. Xanadu owns Mongolia’s largest undeveloped copper-gold deposit, which is in the same region as Oyu Tolgoi.
|Drilling at one of Xanadu Mines’ South Gobi copper-gold prospects.|
The planned exploration programs, which are among the largest to be undertaken by a ASX-listed junior exploration company in 2017, will target the discovery of additional copper-gold deposits on the Kharmagtai and Oyut Ulaan projects.
Xanadu has defined more than 1.5 million pounds of copper and 2 million ounces of gold at the flagship Kharmagtai project, making it one of the world’s most promising copper-gold projects.
Managing director and CEO Dr Andrew Stewart said: “Our exploration is continuing to plan and we believe there remains excellent potential for more large-scale discoveries within our porphyry districts at Kharmagtai, that has already yielded three porphyry centres, and at Oyut Ulaan.
“We will continue to take a systematic approach to assess the multiple copper-gold targets we have identified as being most prospective. We look forward to presenting the results of the first phase of drilling during the first quarter.”
The company recently received a report on preliminary metallurgical test work at the Altan Tolgoi deposit within Kharmagtai. The tests on diamond core from high-grade tourmaline breccia mineralisation returned positive results.
The test work undertaken by Mining Associates was aimed at producing a float concentrate of copper, gold and silver. The work was combined with an optical mineralogy study and grinding power requirement testing.
A single 30kg composite of the coarse reject samples for flotation testing and half core sample were selected for Bond Ball Mill Work Index determination. The assay head grade of the master composite was 4.37% copper, 1.86 g/t gold and 14.1 g/t silver.
“The early stage flotation test results on the high-grade tourmaline breccia mineralisation are exceptional,” Andrew Stewart said. “The above average results, achieved at a moderate grind size, indicate high recoveries, and that a standard crushing, grinding and flotation process is all that will be required to extract all economic minerals from the tourmaline breccia mineralisation. As expected, gold recoveries were also very high.
“While further testing is required as the project advances, we foresee no significant hurdles to producing a high quality concentrate via standard processing pathways.”