DIAMOND drilling at Xanadu Mines’ Oyut Ulaan Copper-Gold Project in Dornogovi province of southern Mongolia has intersected significant high-grade near-surface gold mineralisation. Best results to date are 6.0 metres from surface at 21.57 grams/tonne (g/t) gold and 6.3 metres from 15 metres at 6.67 g/t.

Gathering samples from outcropping on a Xanadu Mines prospect in Mongolia.

The drilling is part of systematic and cost-effective exploration work designed to help the company understand the geological controls on high-grade mineralisation within the shallow gold system that occurs peripheral to known gold-rich porphyry copper and tourmaline breccia copper mineralisation at Oyut Ulaan.

Recent exploration has resulted in discovery of at least four area of gold mineralisation – Stockwork, Bavuu, Diorite and Hulan zones - that occur within a prospective area that is 4.5km long and 300 metres wide. The veins are narrow but very high grade, with gold assays ranging from 1 g/t to more than 30 g/t over widths of 50cm to 1.5 metres.

Exceptional new trench samples from the newly discovered Diorite Zone have delivered exceptional gold results confirming the discovery of a new zone of shallow continuous sub-outcropping high-grade gold mineralisation.

The diamond drilling continues to test a combination of targets which involves outcropping gold-rich porphyry mineralisation and tourmaline breccia copper mineralisation within the highly prospective 40sqkm area of interest which has yielded outstanding results to date.

Xanadu’s CEO Andrew Stewart said, “Exploration at Oyut Ulaan continues to return impressive intersections of shallow gold mineralisation. We are delighted that the first diamond drill results have provided significant advances in our understanding of the gold system and indicate that not only does high-grade gold mineralisation occur over significant widths, it also occurs within multiple stacked lodes that extend below the current depth of shallow drilling.

“We plan to accelerate exploration of this exciting new discovery at Oyut Ulaan where initial work is starting to indicate the potential for a modest scale gold starter project.”

Meanwhile, drilling at the Breccia Pipe prospect of Oyut Ulaan has intersected significant shallow high-grade tourmaline breccia copper mineralisation. One hole returned 69 metres from surface grading 2.0% copper which includes 12.5 metres from 26 metres @ 5.35% copper. This represents the highest grade copper mineralisation discovered to date at Oyut Ulaan.

This hole reaffirms Xanadu’s belief in the potential for this mineral system to host a large scale high-grade copper-gold deposit.

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