- Xanadu Mines has intersected wide zones of strong gold mineralisation at its Mongolian project
- Four shallow holes were completed at the project with each intersecting significant oxide gold mineralisation
- The results are very encouraging and demonstrate excellent potential for a shallow oxide resource
- Xanadu’s share price is up just over four per cent, trading for 5.1 cents apiece
Xanadu Mines has intersected wide zones of strong oxide gold mineralisation at its Kharmagtai Project in southern Mongolia.
A four hole program was completed at the Copper Hill deposit to expand the gold rich core and confirm continuity of oxide gold mineralisation.
Results from the program include 20 metres at 4.60 grams per tonne of gold from 55 metres and 35 metres at 3.04 grams per tonne of gold from 40 metres.
Previous drilling at Copper Hill was offset from potential shallow mineralisation as explorers targeted deeper sulphide, and as such, the oxide and transitional gold potential of the deposit is yet to be assessed.
The aim of this recently completed drilling program, was to identify and expand the oxide mineralisation. It also tested the continuity and helped gain an understanding of the oxide-transitional zone mineralogy so that accurate metallurgy can be obtained.
“We are very pleased by the first drill results from the oxide zone at Copper Hill,” CEO Dr Andrew Stewart said.
“It represents the opportunity for a low cost, high-value gold gravity and leach operation which could be the run early in the development life of Kharmagtai,” he added.
Copper Hill consists of the highest-grade zone of copper-gold mineralisation at Kharmagtai, where very high-density vein hosted sulphide mineralisation occurs over a 200 metre by 100 metre pod that plunges 300 metres in depth.
Near surface mineralisation at Copper Hill has been largely un-drilled as previous drilling is stepped back from the surface to target the deeper sulphide.
Xanadu’s next steps will be to conduct metallurgy to assess the viability of gravity separation versus leaching.
Xanadu’s share price is up slightly trading for 5.1 cents apiece at 2:33 pm AEST.