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Xanadu Mines discovers gold-rich porphyry with diamond drilling

The intersection represents a significant development for Xanadu’s exploration efforts.
Xanadu Mines discovers gold-rich porphyry with diamond drilling
The intersection represents a significant development for Xanadu’s exploration efforts.

Xanadu Mines (ASX:XAM) has discovered a new porphyry named Altan Burged with its first diamond hole within the Kharmagtai copper-gold district, in the South Gobi region of Mongolia.

Drill hole KHDDH395 intersected 220 metres at 0.64 g/t gold and 0.15% copper including 26 metres at 2.27 g/t gold from 42 metres.

The 26 metre section is shallow higher-grade gold mineralisation hosted in oxide cap above a mineralised porphyry.

Drilling will continue to delineate the near surface oxide enrichment zone and locate the highest-grade primary portions of this new porphyry discovery at Kharmagtai.

Dr Andrew Stewart, managing director, commented: “The results of this first diamond drill hole are very exciting.

“The discovery of a new porphyry centre under cover adds further weight to the geological model for the Kharmagtai district as an emerging porphyry district comprising multiple centres of copper-gold and gold mineralisation.”


Background

Xanadu is the owner of Mongolia’s largest undeveloped copper-gold deposit, has committed to spending more than $4.5 million on exploration across its advanced porphyry copper-gold projects in the world class South Gobi porphyry Belt in 2017.

The planned exploration programs, among the largest to be undertaken by a junior ASX-listed exploration company next year, will target the discovery of additional copper-gold deposits on the company’s South Gobi porphyry projects at Kharmagtai and Oyut Ulaan.

The Kharmagtai copper-gold project’s 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, over 11,140 metres of drilling has been conducted.

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.


KHDDH395 diamond hole details

The first diamond drill hole at the Altan Burged porphyry intersected 220 metres grading 0.64 g/t gold and 0.15% copper from 42 metres, which includes 102 metres grading 1.0 g/t gold and 0.16% copper from 42 metres.

This broad intercept includes a shallow zone of supergene gold enrichment of 26 metres grading 2.27g/t gold from 42 metres.

Both oxide and primary gold and copper mineralisation have been intersected in the hole.

The current exploration target dimensions are 500 metres long by 300 metres wide and initial drilling indicates that there is potential for Altan Burged to host a significant high‐grade porphyry gold-copper deposit.


Analysis

The intersection in KHDDH395 represents a significant development for Xanadu’s ongoing exploration efforts within the Kharmagtai district.

While exploration of this emerging porphyry centre is still at an early stage, the width, intensity of alteration and porphyry stockwork mineralisation and tenor of the gold mineralisation intersected is encouraging.

The discovery validates Xanadu’s under cover targeting methods and the importance of these techniques as key exploration tools in unlocking the potential of the large porphyry district.

The current diamond drill program will now focus on delineating the near surface oxide gold enrichment zone and target the highest-grade primary portions of this new porphyry system.

Xanadu is up 10% intra-day and up 100% over the past 12 months, currently trading at $0.22.

The company is also expecting to release the results of an extensive trenching program at Oyut Ulaan before the end of the month.

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