Xanadu Mines Ltd (ASX:XAM) has intersected 9.5 metres at 21.06 g/t gold from surface while diamond drilling at its 90% owned Oyut Ulaan copper-gold project in southern Mongolia.
The drilling is testing the continuity of gold mineralisation discovered through trenching within a large prospective area that is 4.5 kilometres long and 300 metres wide.
Gold mineralisation was intersected in all four diamond holes with grades measuring up to 47.2 g/t gold.
A follow-up program of drilling is expected to commence immediately.
Dr Andrew Stewart, CEO, commented: “The new drill results, which include significant intervals of bonanza gold grades provide the evidence we needed to dedicate additional resources to improving our understanding of the controls on mineralisation and start assessing the size potential of this new discovery more thoroughly."
Significant assay results from the four diamond drill holes are as follows:
- 9.5 metres at 21.06 g/t gold and 0.16% copper including 3 metres at 47.23 g/t gold from surface;
- 6 metres at 15.43 g/t gold and 0.22% copper including 1.1 metres at 38.8 g/t gold from surface;
- 2 metres at 16.12 g/t gold and 0.09% copper from 15.2 metres; and
- 2.5 metres at 5.75 g/t gold and 0.20% copper from surface.
Trenching has also continued to identify new zones of gold mineralisation yet to be drill tested.
Highlights from Diorite zone trenching include:
- 32 metres at 3.75 g/t gold;
- 18 metres at 1.53 g/t gold; and
- 6 metres at 4.53 g/t gold.
Xanadu recently raised $12.2 million through a placement of shares to continue developing the Kharmagtai copper-gold project and Oyut Ulaan gold project in Mongolia.
The raising received strong support investors and saw new well-regarded institutional investors join the register.
Oyut Ulaan gold project
The 90% owned Oyut Ulaan project is located within the South Gobi Copper Belt, which hosts the world class Oyu Tolgoi copper-gold project, and is 260 kilometres east of Kharmagtai.
Recent drilling has been testing trenched targets, which identified gold assays of up to 589.96 g/t and confirmed the existence of a continuous zone of shallow high grade gold mineralisation.
Exploration has now discovered at least four zones of gold mineralisation within a prospective area - Stockwork, Bavuu, Diorite and Hulan.
The ongoing exploration at Oyut Ulaan represents an opportunity for Xanadu to define a shallow gold resource capable of being economically mined.
This particular round of drilling has successfully confirmed the presence of multiple zones of high grade gold mineralisation below previous surface trenching.
By drilling targets identified through previous trenching, which found bonanza gold grades of 589.96 g/t, Xanadu is able to understand the depth of the mineralised zones.
The share price is up 70% year to date, currently trading at $0.19 per share.
Xanadu maintains broker support from Bell Potter who recently upgraded their price target to $0.51 per share.
A follow up drill program is expected and field exploration activities are underway for which results will be released upon completion.
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