TORONTO, Oct. 09, 2019 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or “the Company”) is pleased to advise that recent diamond drilling has intersected wide zones of strong oxide gold mineralisation above the current Mineral Resource at the Copper Hill deposit at its flagship Kharmagtai Project in southern Mongolia (Figures 1 and 2).
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “We are very pleased by the first drill results from the oxide zone at Copper Hill. What encourages us most by what we see at Stockwork Hill, Golden Eagle and now Copper Hill is the grade and potential scale and strike extent of the oxide system. While further drilling is required across the resource as the project advances, these new intersections of significant widths of shallow oxide mineralisation highlight the potential and show that we have just scratched the surface in terms of the broader resource potential. Further, it represents the opportunity for a low cost, high-value gold gravity and leach operation which could be run early in the development life of Kharmagtai, injecting significant cash into the project to offset the cost of developing a large-scale copper-gold mine.
Given Kharmagtai sits on a granted mining lease with a registered water resource and an established power supply nearby, we have the ability to move quickly on an oxide gold project, and our current strategy of seeking high-return options via an oxide gold project is focused on providing the capital needed to advance that larger scale copper and gold project.”
A four-hole program has been completed at Copper Hill to expand the gold-rich core and confirm continuity of oxide gold mineralisation (Figure 3, 4 & 5). Previous drilling at Copper Hill was offset from potential shallow mineralisation as explorers targeted deeper sulphide. As such the oxide and transitional gold potential of the deposit is yet to be assessed. Holes are vertical PQ drill holes with 25m spacing. The objective of this drilling was to identify, expand this oxide mineralisation, test continuity and gain an understanding of the oxide-transitional zone mineralogy and distribution so that accurate metallurgy can be obtained.
Tables 1 and 2 contain the full intercepts and drill hole locations and Figures 3 and 4 provide drill plans and sections.
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 200m by 100m pod that plunges to approximately 300m in depth. Near surface mineralisation at Copper Hill has been largely undrilled as previous drilling is stepped back from the surface to target the deeper sulphide. This has left an opportunity for oxide and transitional gold un-tested. As this material will need to be mined during open pitting of Copper Hill and the oxide gold potential must be tested. The current drill program confirms the presence of both oxide and transitional gold. The next steps will be to conduct metallurgy to assess the viability of gravity separation versus leaching.
The information in this announcement that relates to exploration results is based on information compiled by Dr Andrew Stewart, who is responsible for the exploration data, comments on exploration target sizes, QA/QC and geological interpretation and information. Dr Stewart, who is an employee of Xanadu and is a Member of the Australasian Institute of Geoscientists, has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as the “Competent Person” as defined in the 2012 Edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves” and the National Instrument 43-101. Dr Stewart consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
Andrew Stewart Chief Executive Officer T: +612 8280 7497M: +976 9999 9211 E: Andrew.firstname.lastname@example.org www.xanadumines.com
Set out below is Section 1 and Section 2 of Table 1 under the JORC Code, 2012 Edition for the Kharmagtai project. Data provided by Xanadu. This Table 1 updates the JORC Table 1 disclosure dated 31 July 2019.
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