Proactive Investors - Run By Investors For Investors

Xanadu Mines drills signs of a resource expansion at Kharmagtai

Kharmagtai hosts three porphyry deposits, Stockwork Hill, White Hill and Copper Hill.
long section of copper hill
A resource expansion would bode well for project development

Xanadu Mines (ASX:XAM) has received further drill results confirming further success at its flagship Kharmagtai project located in Mongolia.

Assays from the latest drill hole KHDDH421 have returned broad zones of high-grade mineralisation at shallow depths including 411.6 metres at 1.04% copper equivalent from surface.

Fully funded diamond drilling is targeting near-surface porphyry copper-gold deposits and the continuity of mineralisation below the current resources.

Dr Andrew Stewart, managing director, commented: “We continue to be encouraged by the results of our ongoing extensional resource drilling around the established resources at Kharmagtai.

“Hole KHDDH421, successfully confirmed our interpretation of a shallow west-northwest plunge to a high‐grade zone of copper and gold mineralisation at depth.”

KHDDH421 assays

Drill hole KHDDH421 targeted the down-plunge extensions of Copper Hill deposits and has returned significant intercepts below a depth of 200 metres depth.

Within the broader intersection of 411.6 metres at 0.54% copper and 0.79 g/t gold (1.04% copper equivalent) from surface, higher grade zones included:

- 134 metres at 1.01% copper and 1.84 g/t gold (2.18% copper equivalent) from 14 metres; and
- 112 metres at 0.49% copper and 0.48 g/t gold (0.8% copper equivalent) from 224 metres including 38 metres at 0.71% copper and 0.48 g/t gold (1.01% copper equivalent) from 292 metres.

Ongoing diamond drilling is in progress to target high-grade mineralisation down plunge with further results from Copper Hill expected in November.

Fully funded

Xanadu is now fully funded after its recent $15.4 million placement.

READ: Xanadu receives strong demand in capital raising

As of today, Xanadu has repaid the US$2.76 million loan facility it had with Noble Resources International Pte Ltd.

Kharmagtai Copper-Gold Project

Kharmagtai currently hosts three porphyry deposits in close proximity to each other, Stockwork Hill, White Hill and Copper Hill.

The three deposits have a combined JORC resource of 203 million tonnes grading 0.34% copper and 0.33 g/t gold for circa 1.1 million tonnes of copper equivalent.

The project continues to emerge as one of the premier undeveloped copper-gold assets globally.

The discovery of a fourth deposit or significant resource extensions could be the tipping point to take this project into development.

View full XAM profile View Profile

Xanadu Mines Ltd Timeline

Related Articles

1548859395_drilling.jpg
January 31 2019
A maiden JORC resource is expected by June after the company drilled a 18.2-metre wide intersection grading 40.3% zinc.
Breaking first ground at the HPA plant site
August 10 2018
Stage I construction at Johor site kicks off with a geotechnical drilling and ground survey program.
King Island off the state of Tasmania hosts the old Dolphin tungsten mine
April 08 2019
The company today unveiled a production offtake agreement with a Sandvik-owned tungsten supplier.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use