Xanadu Mines (ASX:XAM) has now identified at least seven targets from first assays in its bedrock drilling program over the Kharmagtai copper-gold project, in the South Gobi region of Mongolia.
The drill program consisted of 259 holes for approximately 11,140 metres of drilling designed to systematically test district-scale anomalies buried under shallow cover identified through 2015 and 2016.
New top of basement drilling results confirms continuity of mineralisation under shallow 20-50 metres cover.
Drilling intersected anomalous bedrock copper and gold mineralisation over a widespread area of 25 square kilometres.
At least seven new targets were identified, with 38 drill holes returning gold grades greater than 0.1 g/t gold and 12 holes more than 0.1% copper over two metre intervals.
Dr Andrew Stewart, managing director, commented:
"The identification of the high-density stockwork copper-gold mineralisation in at least three of the new targets associated with copper over 0.3% copper and gold over 3 g/t gold is an outstanding result, and is validation of our belief that there are undiscovered porphyry centres at Kharmagtai under only 20 to 50 metres of cover."
At Kharmagtai most previous exploration has focused on the three outcropping porphyry deposits: Altan Tolgoi, Tsagaan Sudal and Zesen Uul - where Xanadu has already defined over 1.5 million pounds of copper and over 2 million ounces of gold.
Away from these three deposits the prospective rocks of the Kharmagtai igneous complex are covered by either younger unconsolidated gravels or are obscured by younger volcanic rocks.
To date, 11,140 metres of drilling has been conducted with 9,578 metres of rotary mud drilling and 1,562 metres of diamond tails.
The significance of this cannot be understated considering 70% of the lease is covered shallow sediment and the outcropping 30% contains three known porphyry centres.
Assays results have been returned for 70% of the drilling. Remaining results are expected in the coming weeks.
Five new high-priority copper-gold porphyry and tourmaline breccia anomalies and two new epithermal gold targets have been generated within at the Kharmagtai project
The results of this targeted bedrock drilling program have proved successful.
Xanadu set out to test several shallow high-potential copper-gold and gold targets that occur under shallow cover, looking for both high-grade gold-rich stockwork mineralisation and tourmaline breccia mineralisation.
Results thus far validate Xanadu’s belief that there are undiscovered porphyry centres at Kharmagtai under only 20 to 50 metres of cover.
A priority follow-up drill program is expected to start immediately keeping investors leveraged to exploration based news flow over the short term.
Furthermore, results are pending for 30% of completed drill program with results expected in the March 2017 quarter.
Shares in Xanadu are up 80% year to date, currently trading at $0.20.