Xanadu Mines (ASX:XAM) begins on-ground exploration activities at Red Mountain JV

• Xanadu Mines (XAM) has begun on-ground exploration activities at the highly prospective Red Mountain joint venture (JV)
• Red Mountain, which is located within southern Mongolia, is a joint venture project between Xanadu and the Japan Oil, Gas and Metals National Corporation (JOGMEC)
• This JV between Xanadu and JOGMEC is relatively new, with both companies having only entered an earn-in agreement in mid-March this year
• Under the JV, JOGMEC can fund up to US$7.2 million over a four year period to earn a 51 per cent interest in Red Mountain
• The aim of this JV is to discover Mongolia’s next world-class copper-porphyry deposit.
• Xanadu has ended the day 7.41 per cent in the green with shares trading for 2.9 cents each

Xanadu Mines (XAM) has begun on-ground exploration activities at the highly prospective Red Mountain joint venture (JV).

Red Mountain, which is located within the Dornogovi Province of southern Mongolia, is a joint venture project between Xanadu and the Japan Oil, Gas and Metals National Corporation (JOGMEC).

The project covers 57 square kilometres and is made up of a cluster of outcropping porphyry intrusions.

These porphyry intrusions include multiple copper-gold centres, copper-gold and base metal skarns, and high-grade epithermal gold veins.

This JV between Xanadu and JOGMEC is relatively new, having only entering an earn-in agreement in mid-March this year.

Under the JV, JOGMEC can fund up to US$7.2 million over a four year period to earn a 51 per cent interest in Red Mountain.

The aim of this JV is to discover Mongolia’s next world-class copper-porphyry deposit.

“We are thrilled to have exploration underway again at our Red Mountain JV with JOGMEC, less than one month after signing the earn-in agreement,” Xanadu CEP Dr Andrew Stewart commented.

“The fact that we can commence operational activities now, during the global COVID-19 crisis, is a testament to the proactive and effective approach by the Government of Magnolia in managing the pandemic,” he said.

The first phase of exploration at Red Mountain is to obtain all background data to target the large-scale copper-gold porphyry deposits.

This data will then be 3D modelled and presented as drill-ready targets.

Approximately 1200 metres of diamond drilling has been planned to test the highest priority targets.

Phase two will focus on testing the best targets that were developed from the 3D modelling.

This phase will be time-consuming, as each hole will be analysed to further refine the targets.

Several high-priority targets already exist at Red Mountain, such as Diorite, Stockwork, Stairy, Target 10, and Out Ovoo, and all have intersected high-grade copper and gold mineralisation.

Significant results from these targets include 92 metres at 1.5 per cent copper and 0.02g/t gold from surface including 65 metres at 2.09 per cent copper and 0.03g/t gold from surface.

Xanadu has ended the day 7.41 per cent in the green with shares trading for 2.9 cents each in a $21.36 million market cap.