XANADU Mines plans deeper drilling at Kharmagtai Copper-Gold Project with the aim of extending high-grade tourmaline breccia mineralisation identified in recent drilling. The discovery of additional near-surface high-grade copper-gold mineralisation will add to the existing resource and move the project into economic viability.
|The two primary exploration targets of Xanadu Mines in the South Gobi region.|
The company believes this can be achieved by discovery of a shallow fourth porphyry centre or adding mineralisation at depth under existing resources and it has made good progress in these areas.
Recent deep drilling at Kharmagtai’s Altan Tolgoi deposit has confirmed significant continuous high-grade mineralisation. One hole intersected 646 metres from 16 metres @ 0.51% copper and 0.87 g/t gold, or 1.06% copper equivalent, including 64 metres from 18 metres @ 1.06% copper and 3.15 g/t gold, or 3.08% copper equivalent. This represents the best intersection drilled at the project.
Another hole intersected 385 metres from 351 metres @ 0.52% copper and 0.60 g/t gold, or 0.9% copper equivalent.
Managing director and CEO Andrew Stewart says the mineralisation identified within the resource shell is better than, or similar, to the current resource estimate. The high-grade breccia hosted chalcopyrite-gold mineralisation remains open at depth.
He says widespread near-surface copper and gold mineralisation has been intersected in an undercover bedrock drilling program. Six potential porphyry clusters have been identified, containing 19 individual porphyry and epithermal targets.
Drilling also intersected additional and substantial broad zones of near-surface gold-rich porphyry mineralisation at Altan Burged deposit. One hole intersected 20 metres from 39 metres @ 1.73 g/t gold and 0.18% copper.
At Oyut Ulaan, 260km east of Kharmagtai, diamond drilling has commenced to test the four highest ranked shallow copper-gold porphyry and epithermal gold targets. Two holes are planned to test the depth and continuity of surface mineralisation at Target 46 while trenching and drilling are planned in the area around the Bavuu Zone and Target 10.
Drilling is planned at Target 4 while drilling at Hulan target will test grade continuity, depth potential and seek the causative porphyry system for the skarn body.
Xanadu’s total direct exploration spend in 2016 was $4.8 million with more than 70% allocated towards Kharmagtai. It also spent $A3.9 million on the reduced and last payment for the acquisition of Kharmagtai.