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Xanadu Mines extends copper-gold footprint at Mongolian project

The company is also seeking a dual listing on the Toronto Stock Exchange.
Kharmagtai geology
Ground magnetic data and location of reported drilling at Kharmagtai.

Xanadu Mines Ltd’s (ASX:XAM) accelerated exploration has extended the footprint of the Kharmagtai Copper-Gold Project in southern Mongolia.

Drilling at Stockwork Hill deposit has confirmed high-grade extensions below the resource.

At Target 19, west of the White Hill deposit, scout drilling has confirmed a new shallow porphyry copper discovery.

READ: Xanadu Mines steps-up drilling to boost copper-gold bounty in Mongolia

Results continue to confirm the Kharmagtai project as a district-scale trend with the potential to host further significant copper-gold discoveries.

Andrew Stewart, managing director, said: “What really sets our geology team apart from other explorers is our porphyry copper expertise, which is demonstrated in this new round of results.

“Extensional drilling has significantly increased the footprint of the Kharmagtai porphyry system and where we continue to add high-grade tonnes to the existing resource.

“We are particularly excited in the latest scout drilling at Target 19 where we have intersected broad zones of new copper porphyry mineralisation.

“This could provide another shallow, low-strip ratio discovery within the district.”

WATCH NOW: Xanadu Mines cashed up and working to unlock the value at Kharmagtai

The company will have four drill rigs operating across its projects in the South Gobi region.

Below the Stockwork Hill deposit, drilling has returned 230 metres from 574 metres at 0.5% copper and 0.91 g/t gold.

This included 117 metres at 0.76% copper and 1.63 g/t gold from 624.5 metres, and 71.2 metres at 0.92% copper and 2.33 g/t gold from 684 metres.

Increasing bornite mineralisation down-hole indicates that drilling is nearing the higher-grade core of deposit.

Strong results from Target 19

The newly drilled Target 19 has returned significant porphyry mineralisation.

Best result was 213.4 metres at 0.23% copper and 0.17 g/t gold, or 0.34% copper equivalent, from 86 metres.

Within this were intersections of 130.3 metres at 0.29% copper and 0.22 g/t gold from 130 metres and 16 metres at 0.47% copper and 0.39 g/t gold from 200 metres.

Mineralisation at Target 19 remains completely preserved at depth, which indicates significant resource potential.

Xanadu’s projects are in a prolific copper-gold belt in southern Mongolia.

As drilling extends mineralisation, the Stockwork Hill and White Hill deposits are beginning to coalesce at depth, which could have a material impact on future resource growth potential.

Exploration drilling of high-grade gold and copper targets at the Red Mountain prospect will resume in March.

Seeking dual listing on TSX

Xanadu has applied for the listing of its ordinary shares on the Toronto Stock Exchange to complement its ASX listing.

The company has filed a preliminary non-offering prospectus with the Ontario Securities Commission.

Stewart said: “The TSX listing will constitute a significant milestone for Xanadu, and is driven by the strong and increasing levels of interest by Canadian and North American institutional investors.

“A dual listing will provide enhanced access to international equity capital and the benefits of being listed on two leading resource focused exchanges to increase liquidity and opportunity.”

The company has engaged Mining Associates Ltd to prepare a National Instrument 43‐101 compliant technical report on the Kharmagtai and Red Mountain copper-gold projects.

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