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Xanadu Mines’ drill result brings Zaraa copper-gold deposit closer to open pit range

The hole returned a near continuous intercept of more than 920 metres of copper and gold mineralisation.

Drilling in the evening at the Kharmagtai project
Drilling shows the Zaraa discovery to be a very large-scale system

Xanadu Mines Ltd’s (ASX:XAM) latest drill results have brought the Zaraa copper-gold discovery of the Kharmagtai project in Mongolia closer to being in open pit range.

Results from hole KHDDH469 have brought Zaraa mineralisation within 330 metres vertically of surface and Xanadu is confident additional shallow drilling can further advance its aim.

The hole returned a near continuous intercept in excess of 920 metres of copper and gold mineralisation and ended in porphyry mineralisation at 1,399.5 metres.

READ: Xanadu Mines attracts $10 million for copper-gold project in Mongolia

Xanadu’s managing director and CEO Dr Andrew Stewart, said: “We are extremely pleased with progress at the Zaraa discovery.

“After our initial drill holes showed Zaraa to be a very large-scale system with high-grade potential, our program has turned to bringing Zaraa to surface.”

KHDDH469 assayed 441.6 metres at 0.35% copper and 0.35 g/t gold from 378.9 metres, including 333.4 metres at 0.42% copper and 0.41 g/t gold, or 0.74% copper equivalent, from 414 metres.

There was another 480.3-metre intersection from 832.3 metres that assayed 0.30% copper and 0.25 g/t gold, including 117.2 metres at 0.49% copper and 0.39 g/t gold from 988 metres.

Ground magnetic data for the Kharmagtai project with Zaraa in the centre.

READ: Xanadu Mines assays 750 metres of copper-gold in new holes from Zaraa discovery

Stewart said: “KHDDH469 entered consistent and strong mineralisation at a depth of 330 metres vertically from surface.

“Drill hole KHDDH469 is one more step towards defining the size, shape and grade of Zaraa.

“The objective is to first define a large-scale open pit resource, then step deeper towards the higher-grade underground potential.”

Sporadic mineralisation from 100 metres

In the hole, sporadic porphyry mineralisation was recorded from 100 metres in depth, or about 80 metres vertically, with 52 metres at 0.26% copper equivalent.

As well as bringing Zaraa 200 metres closer to the surface, the hole also expanded the system 220 metres to the northeast and 170 metres to the southwest.

Diamond drilling planned

About 5,000 metres of diamond drilling is planned to bring the known mineralisation at Zaraa to the basement surface, which is 20 metres from the current land surface.

This will also drill this shallow zone to spacings sufficient for a maiden resource estimate, focusing on large-scale open-pit potential.

Stewart said: “This blind discovery is the result of a high-quality and systematic exploration program using good geology and a scientific exploration approach.

“We believe there remains excellent potential for more large-scale discoveries across the Kharmagtai district.

“We will continue to take a systematic approach throughout 2018 to assess the four deposits we have identified so far - Copper Hill, Stockwork Hill, White Hill and Zaraa - as well as testing other shallow exploration targets.”

Similarities with Golden Eagle

There are some close similarities between the surface expression of Zaraa and that of Golden Eagle, 800 metres to the east-southeast.

The Zaraa experiences are being used to re-interpret Golden Eagle data to help define potential depth extensions and drilling is being planned to test this system.

“Following the discovery of our fourth porphyry centre at Zaraa we believe the Kharmagtai project is approaching a near-term development opportunity,” Stewart added.

“Our objective at Kharmagtai now is to work on a new mineral resource estimate for a low strip ratio, high-quality standalone open-pit project and quickly demonstrate economic viability.”

Quick facts: Xanadu Mines Ltd

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Market: ASX
Market Cap: $35.48 m

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