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Xanadu Mines gets 2019 Kharmagtai copper-gold results flowing with broad bornite observed

The company is seeking to add to the high-grade copper-gold resource and expects scoping study results in Q2.

Long section of Kharmagtai project
A long section of Kharmagtai showing the ongoing deep hole in Stockwork Hill deposit

Xanadu Mines Ltd (ASX:XAM) (TSE:XAM) is set for strong news flow from its Kharmagtai Copper-Gold Project area in southern Mongolia with the intersection of a broad zone of visible bornite-chalcopyrite copper mineralisation paving the way.

As well as ongoing drilling targeting extensions to the high-grade resource, the company expects results from a scoping study/preliminary economic assessment (PEA) for the first open pit at Kharmagtai.

READ: Xanadu Mines technical review backs major resource update

Results from the drilling are expected throughout the year while the study is due for completion early in the June quarter.

Shares increase 17% in early trade

Shares were up almost 17% to 10.5 cents in early trade.

A deep diamond hole at the Stockwork Hill deposit has intersected a “significant” zone of visible bornite-chalcopyrite copper mineralisation.

The drilling program is targeting high-grade mineralisation associated with a causative copper and gold porphyry at depth, which is yet to be drilled.

Kharmagtai licence showing ground magnetic data and location of deposits as well as targets.

Xanadu’s managing director and chief executive officer Dr Andrew Stewart said the results were “another step towards our goal of becoming a globally significant copper-gold company”.

READ: Xanadu Mines reveals major resource upgrade for Kharmagtai

He said: “The current focus on drilling for extensions to the high-grade resource at Kharmagtai is proceeding at pace and the mineralisation we are encountering supports this approach.

“The bornite-rich cores of the Stockwork Hill and Copper Hill deposits provide encouragement that the Kharmagtai deposit has the capacity to produce high-grade ore zones characterised by bornite-gold mineralisation.

“[The ongoing hole] has demonstrated the existence of high-grade mineralisation along strike and at depth outside the current resource.”

READ: Xanadu Mines to list today on the Toronto Stock Exchange

This hole has intersected porphyry-style veining and visible chalcopyrite-bornite mineralisation from 178 metres to its current depth of 891 metres.

A broad 100-metre-wide zone of visible bornite-rich mineralisation from 580 metres demonstrates drilling is advancing towards the higher temperature core of the Kharmagtai porphyry system.

The visible intersection begins around 200 metres earlier than prognosed.

Location of the Kharmagtai project in Mongolia’s South Gobi porphyry copper belt.

Transition at depth

Drilling is revealing a transition to higher temperature sulphide mineral assemblages such as bornite in the intrusive root to the deposit.

The hole is around 100 metres east of a previous hole which intersected 294 metres at 0.47% copper and 0.85 g/t gold, or 1.59 g/t gold equivalent, from 466 metres.

This included 86 metres at 0.78% copper and 1.91 g/t gold, or 3.14 g/t gold equivalent, from 558 metres.

Stewart said: “This represents an exciting new development for the project following the release of an interim open-cut resource last year and we are particularly excited with the new results from this hole which are expanding a new zone of bornite porphyry mineralisation.

“Bornite mineralisation typically carries significantly higher gold grades than chalcopyrite only zones.

“Based upon detailed modelling, this new zone of mineralisation remains open in all directions.

“We have not yet found the core or the causative intrusion to mineralisation.

“The new high-grade extensions we have identified potentially provide the opportunity to assess Stockwork Hill as a larger open pit and as an underground resource that has the potential to deliver significant additional value to the project.”

Assay results from the hole are pending.

Quick facts: Xanadu Mines Ltd

Price: 0.044 AUD

Market: ASX
Market Cap: $48.04 m

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