CEO.CA Chairman's Briefing

TORONTO, Nov. 20, 2024 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu or the Company) is pleased to announce strong surface copper assay results from its Sant Tolgoi Project located in Zavkhan Province of Western Mongolia (Figures 1 and 2). Geological mapping, surface rock-chip sampling and geophysics have confirmed the preference of several large anomalies associated with outcropping mafic intrusions. The objective of the multi-discipline exploration programme is to collect the data required to identify drill targets within the large Sant Tolgoi Intrusive Complex. Four targets have been identified and a total of 3000m of reconnaissance drilling has been planned to test all targets for high-grade massive sulphide copper and nickel.

Highlights

• Reconnaissance rock-chip samples collected at the Sant Tolgoi project have returned high-grade results of up to 2.1% Cu from multiple gossan outcrops
• Detailed mapping, geophysics and geochemistry defines at least 4 high-priority drill targets over a 4-kilometre-long splay off the Khangai Fault System
• Follow-up drilling to commence in Q2 2025

Xanadu’s VP Exploration, Dr Andrew Stewart, said:

“We are very excited about the latest results from the Sant Tolgoi exploration program which was designed to collect data required to identify drill targets. Our exploration strategy at Sant Tolgoi focuses on outcropping mafic intrusions where anomalous assay results and detailed geophysics has defined four targets within 100-metres of surface.

“This project represents an exciting greenfields opportunity, and is potentially a new Magmatic Cu and possibly Ni-PGE District in an under-explored mineral province of Western Mongolia. These latest results validate and refine our exploration models providing our exploration team with a clear direction towards a significant discovery at Sant Tolgoi. Follow up drilling is planned for the first half of 2025.”

 Figure 1: The Sant Tolgoi located in the Zavkhan Province of Western Mongolia.

High-Priority Targets Identified

Four key targets have been identified, based firstly on favourable geology and co-incident strong geochemistry, supported by the geophysical properties indicative of mineral deposits.

Geochemistry defined four distinct copper targets at surface. Target 1 consists of outcropping copper oxides (Malachite and Azurite) up to 1% copper in assays with mineralisation associated with coarse grained gabbro stock covering a 500m x 300m area. This area sits within a fault jog on a splay off the Khangai Fault System, where dilation could have created space for mineralised intrusions. Magnetics show a strong remanent magnetic feature in 3D suggesting the target consists of an intrusive rock, or rock that has been altered or mineralised by hydrothermal fluids. Gravity data shows a strong density contrast with surrounding rocks, indicative of a denser, potentially mineralised intrusive. A Dipole-Dipole Induced Polarisation (DDIP) line that crossed the target shows a relatively strong 20mV/V IP chargeability anomaly directly below the geochemistry, indicative of disseminated sulphides in a mineralised intrusive. Controlled source audio-frequency magnetotellurics (CSAMT) data also shows a conductive zone associated with the center of this Induced Polarisation (IP) Chargeability anomaly, potentially massive sulphide, surrounded by a resistive halo.

Target 2 is outcropping copper (up to 2.1% Cu) mineralisation associated with coarse grained gabbro sill like body along the structure and covering a 300m x 50m area. Magnetics show a moderate remanent magnetic feature in 3D suggesting the target consists of an intrusive rock, or rock that has been altered or mineralised.  Gravity data shows a strong density contrast with surrounding rocks, indicative of a denser, potentially mineralised intrusive. A DDIP line that crossed the target shows a moderate 17mV/V IP chargeability anomaly directly below the geochemistry, indicative of disseminated sulphides. CSAMT data also shows a conductive zone, potentially massive sulphide in an intrusive.

Target 3 is a blind geophysical target under the cover. Target has high density and moderate magnetic features similar with targets have outcropping copper mineralization. The size of anomaly is 300m x 200m.

Target 4 is a blind geophysical target. Target has high density and moderate magnetic features similar with targets have outcropping copper mineralisation. The size of anomaly is 400m x 300m.

Geochemistry Sampling Results

The Sant Tolgoi surface sampling programme consisted of 519 surface rock-chip samples. Sampling was conducted over a 3km by 1km area (Field Area, Figure 2) covering two clusters of prospective rocks adjacent to the regional scale Khangai Fault System, interpreted to be channelling mineralisation in the area. Each sample consisted of numerous golf ball sized chips taken from a 2m-by-2m area. These samples identified outcropping copper mineralisation associated with coarse grained (1cm to 2cm grain size) gabbro dykes and stocks (Figures 2 and 3). Results confirm four distinct targets sitting in a 4-kilometre-long splay off the Khangai Fault System with elevated grade of copper up to 2.1% Cu and with association of <4g/t Ag; and <0.06% Ni at surface (Figure 3).

Figure 2: Interpreted Geology Sant Tolgoi and Field Area Highlighted.

Figure 3: Field Area Copper rock-chip results.

Geophysical Programme

Four geophysical properties have been measured to support drill targeting of surface geological and geochemical data. Magnetic data has been acquired to help identify and separate different rock types at depth. Gravity data has been acquired to potentially map denser intrusive bodies. CSAMT has been acquired to map conductivity which may correlate with linked sulphides (massive and veined) or structures containing water/conductive geological units. Dipole-Dipole Induced Polarisation data has been collected to identify disseminated sulphides (Figures 4 and 5).

Figure 4: Magnetic and Gravity Data. Top two panels show magnetic data, bottom two panels show gravity data.

Figure 5: Magnetic Inversions. See text for descriptions.

A total of 53-line kilometres of drone-based magnetics has been completed across the target area (Figure 4). This data has been inverted in 3D and processed to separate out the three component magnetic vector data. Amplitude data from the three components maps the true location of the magnetic susceptibility feature. The E-perpendicular component maps the remanent magnetic changes which occur after the host rock was formed. Processes like intrusives, alteration or mineralisation. The E-Projected component maps the background geology.

A total 530 stations of ground gravity survey completed over potential prospects of Sant Tolgoi Project. A moderate to high dense domains mapped the distribution of mineralized gabbro stocks or sills (Figure 4).

A total of 9 lines or 150 stations of CSAMT was completed over potential prospects of Sant Tolgoi Project. A low resistivity (conductive) feature mapps the gabbro stocks or sills in depth (Figure 5).

A total 4-line kilometres Dipole-Dipole Induced Polarisation survey completed over potential prospects of Sant Tolgoi Project. High chargeable and low resistivity features endorsing the above geophysics results in depth, where defined gabbro stock or sills (Figure 5).

Figure 5: CSAMT and IP inverted Data as lines.

Geology and Mineralisation

Mineralisation at Sant Tolgoi consists of copper oxides hosted within coarse grained gabbro. Copper is expressed as secondary, remobilised by weathering in fractures and as staining. This is interpreted to have been remobilised from primary disseminated and massive sulphides below the weathering profile. Figures 6 and 7 show polished slab photographs of the coarse-grained hornblende gabbro.

Figure 6: Sample 140866: Coarse-grained, malachite-azurite stained hornblende gabbro.
Sample returned an assay of 0.63% Cu.

Figure 7: Sample 140869: Coarse-grained, malachite-azurite-stained hornblende gabbro.
The sample returned an assay of 0.76% Cu.

About Sant Tolgoi

The Sant Tolgoi Project covers two Exploration Licences, XV-17774 (Oyut) and XV-21887 (Sant Tolgoi) in the Zavchan Province of Western Mongolia with a combined area of over 40km² (Figure 2), collectively referred to as the Sant Tolgoi Project or Sant Tolgoi Copper Project. The Tenement portfolio includes numerous advanced exploration targets with real prospectivity for the discovery of significant magmatic copper and nickel mineralisation. In the Zavchan Region of Mongolia, the Sant Tolgoi Project lies on the western extension to the of the deep seated Khangai Fault systems, a metalliferous fault network which hosts several significant mafic and ultramafic intrusions that are highly encouraging for intrusion hosted copper and nickel discoveries. Early signs of several copper-nickel systems have been encountered in both historical drilling.

Statements and Disclaimers

Competent Person Statement

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.

Forward-Looking Statements

Certain statements contained in this Announcement, including information as to the future financial or operating performance of Xanadu and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.  These ‘forward-looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Xanadu, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.

Xanadu disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after the date of this Announcement or to reflect the occurrence of unanticipated events, other than required by the Corporations Act 2001 (Cth) and the Listing Rules of the Australian Securities Exchange (ASX) and Toronto Stock Exchange (TSX). The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.

All ‘forward‐looking statements’ made in this Announcement are qualified by the foregoing cautionary statements. Investors are cautioned that ‘forward‐looking statements’ are not guarantee of future performance and accordingly investors are cautioned not to put undue reliance on ‘forward‐looking statements’ due to the inherent uncertainty therein.

About Xanadu Mines

Xanadu is an ASX and TSX listed Exploration company operating in Mongolia. We give investors exposure to globally significant, large-scale copper-gold discoveries and low-cost inventory growth. Xanadu maintains a portfolio of exploration projects and remains one of the few junior explorers on the ASX or TSX who jointly control a globally significant copper-gold deposit in our flagship Kharmagtai project. Xanadu holds 50-50 JV share with Zijin Mining Group in Khuiten Metals Pte Ltd, which controls 76.5% of the Kharmagtai project.

For further information on Xanadu, please visit: www.xanadumines.com or contact:

Colin Moorhead                                                                                             
Executive Chairman & Managing Director                                                        
P: +61 2 8280 7497                                                    
E:  colin.moorhead@xanadumines.com           
W: www.xanadumines.com

This Announcement was authorised for release by Xanadu’s Executive Chair & Managing Director.

APPENDIX 1: Rock Chip Assay Results

APPENDIX 2: SANT TOLGOI TABLE 1 (JORC 2012)

Set out below is Section 1 and Section 2 of Table 1 under the JORC Code, 2012 Edition for the Sant Tolgoi project. Data provided by Xanadu. This Table 1 is the first JORC Table 1 disclosure for the Sant Tolgoi Project.

1.1     JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA

1.2     JORC TABLE 1 - SECTION 2 - REPORTING OF EXPLORATION RESULTS

(Criteria in this section apply to all succeeding sections).

1.3     JORC TABLE 1 - SECTION 3 ESTIMATION AND REPORTING OF MINERAL RESOURCES

Mineral Resources are not reported so this is not applicable to this report.

1.4  JORC TABLE 1 - SECTION 4 ESTIMATION AND REPORTING OF ORE RESERVES

Ore Reserves are not reported so this is not applicable to this report.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/7ac5d5ad-7390-455a-8a57-3bf01a26e665
https://www.globenewswire.com/NewsRoom/AttachmentNg/b2708920-b474-48f5-b04f-3991ccf72366
https://www.globenewswire.com/NewsRoom/AttachmentNg/0e1b2734-2497-4393-81aa-f22ea54a4fed
https://www.globenewswire.com/NewsRoom/AttachmentNg/fe55fd8c-bef9-49f8-be95-77b3aa8f7b6c
https://www.globenewswire.com/NewsRoom/AttachmentNg/781d203c-90c6-444f-b974-d0876c549b5b
https://www.globenewswire.com/NewsRoom/AttachmentNg/31005bdd-a74b-4b8f-9ae3-9f94e1c5d861
https://www.globenewswire.com/NewsRoom/AttachmentNg/5bac4ca0-8727-4fb1-845a-1001ac792176
https://www.globenewswire.com/NewsRoom/AttachmentNg/27ec80a3-0575-4d7f-bb25-5745df271b79

Figure 1

The Sant Tolgoi located in the Zavkhan Province of Western Mongolia.

Figure 2

Interpreted Geology Sant Tolgoi and Field Area Highlighted.

Figure 3

Field Area Copper rock-chip results.

Figure 4

Magnetic and Gravity Data. Top two panels show magnetic data, bottom two panels show gravity data.

Figure 5

Magnetic Inversions. See text for descriptions.

Figure 5

CSAMT and IP inverted Data as lines.

Figure 6

Sample 140866: Coarse-grained, malachite-azurite stained hornblende gabbro. Sample returned an assay of 0.63% Cu.

Figure 7

Sample 140869: Coarse-grained, malachite-azurite-stained hornblende gabbro. The sample returned an assay of 0.76% Cu.