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Xanadu Mines confirms three large porphyry targets

Last month, Xanadu received a Buy recommendation and a $0.52 valuation from broker Bell Potter.
drill rig on site in Mongolia
Shares are currently trading at $0.20 and drilling is ongoing

Xanadu Mines (ASX:XAM) has confirmed that three of its 19 copper-gold and gold targets are new large-scale porphyry prospects within its flagship Kharmagtai project in Mongolia.

Exploration drilling that is currently still in progress has revealed that at least one shallow drill hole in each of the three targets has returned broad zones of porphyry alteration and mineralisation.

Initial drill results indicate a six kilometre long strike potential for mineralisation.

Dr Andrew Stewart, managing director, commented: “The results of this systematic drill program are proving to be very exciting with three new high-priority targets returning broad zones of porphyry copper and gold mineralisation under shallow cover.

“We plan to test all 19 high-potential copper-gold and gold targets generated during a recently completed bedrock drilling program.”

The three new porphyry targets

The Kharmagtai copper-gold deposits are concentrated along a series of small intrusions coming off the top of the main intrusion on the top of a much larger body at depth.

Shallow drilling in the second half of 2016 generated 19 high-potential copper-gold and gold targets, which are currently being tested by the drilling program underway.

The newly identified porphyry targets are Target 3, Target 4 and Target 6.

Target 3 is a 650x550 metre porphyry target where two shallow drill holes have been drilled with one hole returning 44 metres at 0.19% copper and 0.27g/t gold from 25 metres.

Target 4 is a 800x750 metre circular porphyry target where several broad intercepts have been recorded including three over 80 metres including 91 metres at 0.22% copper and 0.26 g/t gold from 30 metres.

Target 6 is a 1000x400 metre porphyry target where a single drill hole has returned 96 metres at 0.35 g/t gold and 0.10% copper from 95 metres.

Finding the high-grade source

Work is underway at these porphyry targets to vector towards the higher grade core of the system.

Drilling continues and the remaining targets will be tested over the coming months before all targets are assessed to focus the drill rigs on the highest grade and largest systems.

To date, less than half of the system’s footprint and only six of the 19 targets have been tested.

Following on from earlier success

The identification of the porphyry targets follows on from recent high-grade copper-gold intercepts at the Stockwork Hill deposit within the Kharmagtai Project.

Results include:
- 264 metres at 0.56% copper and 1.46 g/t gold (1.49% copper equivalent) from surface;
- 234 metres at 0.57% copper and 1.04 g/t gold (1.23% copper equivalent) from 466 metres, which defined a new zone of high-grade stockwork mineralisation; and
- 212 metres at 0.36% copper and 0.38 g/t gold (0.61% copper equivalent) from 333 metres, which intersected a broad zone of breccia mineralisation.

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