A broad-spaced reconnaissance diamond drilling program has been completed at Xanadu Mines’ Oyut Ulaan Copper-Gold Project in southern Mongolia. The drilling has confirmed the presence of multiple zones of high-grade mineralisation below previous surface trenching.

The objective of the first pass diamond drilling was to test the continuity and thickness of gold mineralisation below the trenching.

The small program tested four zones of gold mineralisation identified by trenching that occur within a large area of prospective mineralisation that is 4.5km long and 300 metres wide. The zones are Stockwork, Bavuu, Diorite and Hulan.

A newly completed hole at the Diorite prospect intersected 9.5 metres @ 21.06 grams/tonne (g/t) gold from surface which included 3 metres @ 47 g/t from 2 metres within a discrete sub-vertical structure hosting hematic-quartz veins with coarse visible gold. A follow-up diamond hole intersected 6 metres @ 15.43 g/t from surface.

Two new holes at the Stockwork Zone both intersected significant intervals of gold mineralisation hosted by pyritic quartz veins, which occur as multiple stacked arrays.

The full extent of the discovery is still unknown with mineralisation remaining open along strike and down dip. Trenching continues to identify new zones of mineralisation which have not yet been tested with drilling. Best recent trench results include 32 metres @ 3.75 g/t and 18 metres @ 1.53 g/t.

Xanadu’s CEO Dr Andrew Stewart said, “The new drill results, which include significant intervals of bonanza gold grades, provide the evidence we needed to dedicate additional resource to improving our understanding of the controls on mineralisation and start assessing the size potential of this new discovery more thoroughly.

“A follow-up program of drilling, expected to commence immediately, is being planned to scope the potential of the shallow high-grade oxide gold mineralisation and we remain very excited about the potential of this trend. We will also undertake further trenching and drilling to discover more zones of mineralisation that we believe to exist.

“After recently completing a $12.2 million placement, we are fully cashed up to progress our exploration programs.”


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