THREE new large porphyry centres have been confirmed under shallow cover at Xanadu Mines’ Kharmagtai Copper-Gold Project in southern Mongolia. Recent drilling of high-potential copper-gold and gold targets has confirmed the centres.
Detailed alteration and geochemical modelling has highlighted extensive system preservation while new gravity infill data is aiding undercover targeting.
The 19 high-potential copper-gold and gold targets generated during a recent bedrock drilling program are being tested with three core rigs drilling and only six targets tested to date.
Outstanding initial drill results from the program indicate a 6km-long strike potential for mineralisation. The results have confirmed three of the targets as new large porphyry centres with at least one shallow drill hole in each target returning broad zones of porphyry alteration and mineralisation.
Target 3 is a 650x550 metre porphyry target characterised by strong copper-gold anomalism and concentric porphyry veining and alteration zoning. Two shallow drill holes have been drilled with one hole returning 44 metres from 25 metres @ 0.19% copper and 0.27 g/t gold.
Target 4 is a large circular porphyry target of 800x750 metres characterised by strong surface copper-gold with concentric porphyry veining and alteration zoning. Several shallow RC and DDH drill holes have been drilled at this target returning broad intercepts of porphyry-style mineralisation.
Best results are 91 metres from 30 metres @ 0.22% copper and 0.26 g/t gold; 80 metres from 31 metres @ 0.19% copper and 0.21 g/t gold; and 90.1 metres from 26.9 metres @ 0.20% copper and 0.14 g/t gold, including 8 metres from 29 metres @ 0.44% copper and 0.50 g/t gold.
Target 6 is a 1km-long x 400 metre-wide porphyry target characterised by anomalous surface copper-gold and zoned porphyry veining and alteration. One hole targeted the confluence of copper-gold geochemistry and a bullseye magnetic anomaly encountering gold-rich porphyry style mineralisation returning 96 metres from 95 metres @ 0.35 g/t gold and 0.10% copper. It is believed this hole has tagged the edge of a significant porphyry system.
Drilling continues and the remaining targets will be tested over the coming months before all targets are assessed to focus the drill rigs on the highest grade and largest systems.
Placement raises $15.4 million
Xanadu has completed the bookbuild for a placement to institutional and sophisticated investors raising approximately A$15.5 million. The placement was heavily oversubscribed, reflecting the strong interest from a variety of existing and new investors.
Xanadu said this was driven by its recent exploration success at the flagship Kharmagtai project.
Xanadu’s CEO Dr Andrew Stewart said, “The strengthening of our balance sheet to now be debt free will allow Xanadu to vigorously pursue its drilling programs unencumbered, which puts us at a very advantageous position.”
Placement proceed will be used for exploration at Kharmagtai, Red Mountain and Yellow Mountain copper-gold projects.