These results form part of the company’s 2019 drilling program which has made substantial progress towards defining a shallow oxide gold resource as part of a strategy to develop a gold starter project.
The new assays have increased the company’s confidence in the emerging oxide gold opportunity at Kharmagtai with Stockwork Hill being the first prospect to be drilled outside the Kharmagtai deposit.
Assays validate low-cost, high-value mine plan
Xanadu’s chief executive officer Andrew Stuart said: “We are very pleased by these new drill results from the mineralised oxide zone above the Stockwork Hill copper-gold deposit which has delivered some pleasant surprises – not least which are the much higher than anticipated gold grades.
“To have such high gold grades defined so early is promising and supports our interpretation of an east-west zone of mineralisation, which presents as an outstanding target for further step-out drilling.
“Given the shallow nature of the mineralisation, these gold intersections generated at Stockwood Hill show just how underexplored the broader Kharmagtai Project is for oxide gold mineralisation and validates the plan of developing a low-cost, high-value gold starter project at Kharmagtai.”
The Kharmagtai project is in the South Gobi porphyry copper belt
Notable gold intersections include:
- 40 metres at 2.91 g/t gold from surface, including 37 metres at 3.14 g/t and 21 metres at 5.20 g/t;
- 40 metres at 1.72 g/t, including 36 metres at 1.85 g/t from 4 metres;
- 40 metres at 1.50 g/t, including 34 metres at 1.75 g/t from 6 metres.
The initial 8-hole drill program has been extended to a 21-hole program to test onè of the main oxide gold targets at Kharmagtai, to confirm the expected gold grades.
Holes have been drilled and designed to test five sections across the oxide cap, with other holes designed to test above the sulphide zones to the northwest.
Xanadu is developing plans to test the Copper Hill and Golden Eagle oxide gold zones.