TORONTO, July 05, 2023 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the Company) and its joint venture partner Zijin Mining Group Co., Ltd. (Zijin) are pleased to announce results from the first 3,400m shallow exploration discovery drilling at Kharmagtai (of 10,000m planned), targeting additional copper-gold deposits outside the current Mineral Resource Estimate (MRE).
Highlights
- New shallow discovery drilling intersects both high-density stockwork, breccia mineralisation and gold only mineralisation across three largely unexplored porphyry clusters.
- Best diamond drilling intercepts at Cluster Two and Cluster Three:
- KHDDH590 - 8m at 1.59g/t Au from 289m;
- Including 4m @ 3.04g/t Au from 291m.
- KHDDH622 - 15m @ 1.26% Cu from 127m;
- Including 5.95m @ 2.97% Cu from 132.5m.
- KHDDH590 - 8m at 1.59g/t Au from 289m;
- Extensive infill and exploration program underway with regular news flow to continue throughout 2023, as exploration drilling for additional porphyry copper deposits and MRE expansion continues.
Xanadu’s Executive Vice President Exploration, Dr Andrew Stewart, said “Initial results from shallow exploration discovery drilling has demonstrated exciting growth potential. We set out to test several shallow (within 200m from surface) high-potential copper-gold and gold only targets outside the currently defined mineral resource volume, looking for both high-grade, gold-rich stockwork mineralisation and tourmaline breccia mineralisation.
Delivering drill intercepts over 3% copper and over 3g/t gold from the first three targets tested is very encouraging. This validates our strong belief in undiscovered porphyry deposits at Kharmagtai. We look forward to updating the market and results will be released in logical groups of drill holes.”
About the Shallow Exploration Drilling
Shallow exploration drilling at Kharmagtai is targeting additional porphyry copper-gold deposits outside the currently defined MRE volume. This programme also serves to inform future infrastructure location decisions associated with the potential development of the Kharmagtai Project into a large-scale mining operation. Approximately 3,400m (of 10,000m planned) has been completed to date in fifteen holes (Figure 1, Tables 1 and 2).
Table 1: Geological characteristics of the five coper-gold and gold clusters.
Cluster | Style | Size | Depth | Host | Max Copper from drilling | Max Gold from drilling | Comments |
Cluster One | Porphyry Stockwork | 1.5km by 1km | Outcrop | Diorite intrusive in siltstone | 2m @ 0.35% Cu | 2m @ 0.74g/t Au | Outcropping high-density sheeted porphyry veining with malachite staining. |
Cluster Two | Porphyry Stockwork and Epithermal Gold | 2km by 1km | Outcrop | Diorite intrusive in sandstone | 2m @ 0.2% Cu | 2m @ 4.17g/t Au | Outcropping high-density sheeted porphyry veining with malachite staining. |
Cluster Three | Porphyry Stockwork and Tourmaline Breccia | 1.5km by 1.5km | Outcrop | Diorite intrusive in siltstone | 1.95m @ 5.38% Cu and 1.15m @ 5.59% Cu | 2m @ 1.06g/t Au | Outcropping porphyry veining and tourmaline breccia with malachite staining. |
Cluster Four | Porphyry Stockwork and Tourmaline Breccia | 3km by 2km | 10m of cover | Diorite intrusive in siltstone | 2m @ 0.69% Cu | 2m @ 1.06g/t Au | Previous broad intercepts of porphyry mineralisation |
Cluster Five | Porphyry Stockwork and Tourmaline Breccia | 3km by 2km | Between 5 and 20m of cover | Diorite Intrusive | Drilling imminent | Drilling imminent | Previously undrilled |
Figure 1: Kharmagtai copper-gold district showing currently defined mineral deposits and planned and completed shallow exploration drill holes. Blue outlines are 2021 scoping study open pit designs and white dashed outlines define porphyry cluster target areas.
Shallow Drilling Results to Date
At Cluster One (Figure 1), drilling targeted surface copper anomalism and outcropping porphyry veining. Drill Hole KHDDH589 intercepted a broad zone of low-grade porphyry mineralisation from surface, suggesting the hole has passed over and to the north of a potential shallow porphyry (Figure 2). Drill hole KHDDH589 returned:
Hole ID | Interval (m) | Cu (%) | Au (g/t) | CuEq (%) | From (m) |
KHDDH589 | 28.3 | 0.16 | 0.16 | 0.25 | 2.2 |
and | 26 | 0.06 | 0.18 | 0.15 | 42 |
Drilling is planned to test behind this intercept for higher-grade material at Cluster One.
Drilling at Cluster Two (Figure 1) targeted previous shallow porphyry stockwork mineralisation and was prioritised given the area is adjacent to existing planned open pits and planned infrastructure. Drill hole KHDDH590 targeted a previous porphyry intercept (Figure 3) and encountered a broad zone of low-grade porphyry mineralisation with an additional high-grade gold intercept near end of hole (EOH).
Hole ID | Interval (m) | Cu (%) | Au (g/t) | CuEq (%) | From (m) |
KHDDH590 | 113.2 | 0.10 | 0.18 | 0.19 | 163.8 |
and | 8 | - | 1.59 | - | 289 |
including | 4 | - | 3.04 | - | 291 |
The copper gold ratio of these intercepts and nature of mineralisation is like the nearby Southern Stockwork Zone at Stockwork Hill, with additional drilling to be planned as this appears to be on the edge of a potentially shallow, mineralised porphyry.
A total 4 diamond drill holes were completed at Cluster 4 with no significant results returned.
Figure 2: Cross Section Drill Hole KHDDH589.
Figure 3: Cross Section Drill Hole KHDDH590.
At Cluster Three (Figure 1), drilling is targeting previous broad porphyry intercepts in trenching and drilling, along with key structural features characterising existing deposits at Kharmagtai. Three drill holes at Cluster 3 have returned significant results to date, which are encouraging for a potential shallow high-grade core to be identified.
Drill hole KHDDH622 (Figure 4) targeted a structure in the west of the cluster and returned high-grade copper intercepts. This intercept is significant in its width and grade, and additional drilling is planned to test along strike, up and down dip.
Hole ID | Interval (m) | Cu (%) | Au (g/t) | CuEq (%) | From (m) |
KHDDH622 | 15 | 1.26 | 0.09 | 1.31 | 127 |
including | 5.95 | 2.97 | 0.21 | 3.08 | 132 |
Figure 4: Cross Section Drill Hole KHDDH622.
Drill Hole KHDDH625 targeted surface copper in the south of Cluster 3 (Figure 5). This hole encountered several broad zones of low-grade porphyry mineralisation and a shallower moderate grade intercept.
Hole ID | Interval (m) | Cu (%) | Au (g/t) | CuEq (%) | From (m) |
KHDDH625 | 20.3 | 0.29 | 0.10 | 0.30 | 28 |
and | 59.8 | 0.16 | 0.02 | 0.16 | 80 |
and | 70 | 0.15 | 0.03 | 0.17 | 150 |
Figure 5: Cross Section Drill Hole KHDDH625.
Drill Hole KHDDH630 also targets surface copper anomalism and has returned a broad interval of low-grade copper porphyry mineralisation (Figure 6). This drilling all points to Cluster 3 having the potential for a large-scale shallow copper porphyry with a high-grade core. Additional drilling is being planned to follow up on these results.
Hole ID | Interval (m) | Cu (%) | Au (g/t) | CuEq (%) | From (m) |
KHDDH630 | 61 | 0.10 | 0.03 | 0.11 | 7 |
Figure 6: Cross Section Drill Hole KHDDH630 and KHDDH635.
Figure 7: Drill core photos from KHDDH622 ad KHDDH635.
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 is the Operator of a 50-50 JV 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 E: colin.moorhead@xanadumines.com P: +61 2 8280 7497 | Spencer Cole Chief Financial & Development Officer E: spencer.cole@xanadumines.com P: +61 2 8280 7497 |
This Announcement was authorised for release by Xanadu’s Board of Directors.
Appendix 1: Drilling Results
Note that true widths will generally be narrower than those reported. See disclosure in JORC explanatory statement attached.
Table 1: Drill hole collar
Hole ID | Cluster | East | North | RL | Azimuth (°) | Inc (°) | Depth (m) |
KHDDH589 | 1 | 592148 | 4875347 | 1319 | 315 | -60 | 228.5 |
KHDDH590 | 2 | 591074 | 4878009 | 1295 | 315 | -60 | 300.0 |
KHDDH591 | 2 | 590226 | 4877369 | 1308 | 0 | -60 | 200.0 |
KHDDH592 | 1 | 592030 | 4875318 | 1320 | 315 | -60 | 282.5 |
KHDDH593 | 2 | 590750 | 4878168 | 1294 | 0 | -60 | 200.0 |
KHDDH596 | 1 | 592378 | 4875268 | 1313 | 315 | -60 | 316.6 |
KHDDH622 | 3 | 593518 | 4874425 | 1289 | 315 | -60 | 221.8 |
KHDDH625 | 3 | 594030 | 4874188 | 1290 | 315 | -60 | 259.4 |
KHDDH630 | 3 | 594218 | 4874708 | 1290 | 315 | -60 | 201.0 |
KHDDH635 | 3 | 594460 | 4874441 | 1302 | 315 | -60 | 200.0 |
KHDDH636 | 3 | 594794 | 4874708 | 1290 | 315 | -60 | 200.0 |
KHDDH640 | 4 | 595385 | 4873935 | 1293 | 315 | -60 | 200.0 |
KHDDH641 | 4 | 595991 | 4875418 | 1290 | 315 | -60 | 200.0 |
KHDDH643 | 4 | 596431 | 4874228 | 1303 | 315 | -60 | 218.6 |
KHDDH646 | 4 | 597073 | 4874708 | 1305 | 315 | -60 | 200.0 |
Table 2: Significant drill results
Hole ID | Cluster | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | CuEq (%) | AuEq (g/t) |
KHDDH589 | Cluster One | 2.2 | 30.5 | 28.3 | 0.16 | 0.16 | 0.25 | 0.48 |
including | 14 | 18 | 4 | 0.26 | 0.23 | 0.36 | 0.71 | |
and | 42 | 68 | 26 | 0.18 | 0.06 | 0.15 | 0.29 | |
and | 100 | 111.5 | 11.5 | 0.09 | 0.06 | 0.11 | 0.21 | |
and | 176 | 188 | 12 | 0.07 | 0.05 | 0.09 | 0.17 | |
and | 201 | 209 | 8 | 0.10 | 0.11 | 0.16 | 0.31 | |
KHDDH590 | Cluster Two | 163.8 | 277 | 113.2 | 0.18 | 0.10 | 0.19 | 0.36 |
including | 170 | 182 | 12 | 0.35 | 0.13 | 0.31 | 0.61 | |
and | 289 | 297 | 8 | 1.59 | 0.07 | 0.88 | 1.72 | |
including | 291 | 295 | 4 | 3.04 | 0.05 | 1.60 | 3.14 | |
KHDDH592 | Cluster One | 81 | 104 | 23 | 0.23 | 0.05 | 0.17 | 0.34 |
including | 81 | 87.6 | 6.6 | 0.49 | 0.05 | 0.30 | 0.59 | |
and | 182 | 190 | 8 | 0.21 | 0.08 | 0.19 | 0.37 | |
and | 215 | 240.2 | 25.2 | 0.04 | 0.09 | 0.11 | 0.22 | |
KHDDH593 | Cluster Two | 104 | 107.8 | 3.8 | 0.14 | 0.09 | 0.16 | 0.32 |
KHDDH622 | Cluster Three | 9 | 51 | 42 | 0.01 | 0.08 | 0.08 | 0.16 |
and | 61 | 94 | 33 | 0.01 | 0.12 | 0.12 | 0.24 | |
and | 127 | 142 | 15 | 0.09 | 1.26 | 1.31 | 2.56 | |
including | 132.05 | 138 | 5.95 | 0.21 | 2.97 | 3.08 | 6.02 | |
and | 215 | 219 | 4 | 0.03 | 0.48 | 0.50 | 0.98 | |
KHDDH625 | Cluster Three | 1.4 | 10 | 8.6 | 0.03 | 0.16 | 0.17 | 0.34 |
and | 28 | 48.3 | 20.3 | 0.01 | 0.29 | 0.30 | 0.59 | |
including | 32 | 40 | 8 | 0.01 | 0.45 | 0.46 | 0.90 | |
and | 64 | 70 | 6 | 0.02 | 0.00 | 0.00 | 0.00 | |
and | 80.2 | 140 | 59.8 | 0.02 | 0.15 | 0.16 | 0.32 | |
including | 90 | 99.54 | 9.54 | 0.02 | 0.19 | 0.20 | 0.39 | |
and | 150 | 220 | 70 | 0.03 | 0.15 | 0.17 | 0.32 | |
including | 184 | 194 | 10 | 0.12 | 0.24 | 0.30 | 0.58 | |
and | 238 | 250 | 12 | 0.04 | 0.09 | 0.11 | 0.22 | |
KHDDH630 | Cluster Three | 7 | 68 | 61 | 0.02 | 0.11 | 0.12 | 0.24 |
and | 99.1 | 116 | 16.9 | 0.03 | 0.10 | 0.11 | 0.22 | |
KHDDH635 | Cluster Three | 3 | 7 | 4 | 0.01 | 0.13 | 0.14 | 0.27 |
and | 21 | 127.65 | 106.65 | 0.03 | 0.19 | 0.20 | 0.40 | |
including | 31 | 35 | 4 | 0.22 | 0.85 | 0.95 | 1.87 | |
including | 85 | 90.05 | 5.05 | 0.07 | 0.78 | 0.82 | 1.60 | |
and | 157.7 | 200 | 42.3 | 0.02 | 0.11 | 0.12 | 0.23 | |
KHDDH636 | Cluster Three | 5.3 | 32.6 | 27.3 | 0.03 | 0.10 | 0.12 | 0.23 |
and | 49 | 58 | 9 | 0.06 | 0.07 | 0.10 | 0.20 | |
and | 90 | 200 | 110 | 0.05 | 0.09 | 0.12 | 0.23 | |
KHDDH640 | Cluster Four | No Significant Results | ||||||
KHDDH641 | Cluster Four | 28.0 | 112.0 | 28.0 | 0.02 | 0.09 | 0.10 | 0.21 |
KHDDH643 | Cluster Four | No Significant Results | ||||||
KHDDH646 | Cluster Four | 147.0 | 151.0 | 4.0 | 0.33 | 0.02 | 0.19 | 0.38 |
Appendix 2: Statements and Disclaimers
Competent Person Statement
The information in this announcement that relates to Mineral Resources is based on information compiled by Mr Robert Spiers, who is responsible for the Mineral Resource estimate. Mr Spiers is a full time Principal Geologist employed by Spiers Geological Consultants (SGC) and is a Member of the Australian Institute of Geoscientists. He 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 Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Mr Spiers consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
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.
Mineral Resources and Ore Reserves Reporting Requirements
The 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2012) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The Information contained in this Announcement has been presented in accordance with the JORC Code 2012.
The information in this Announcement relates to the exploration results previously reported in ASX Announcements which are available on the Xanadu website at:
https://www.xanadumines.com/site/investor-centre/asx-announcements
The Company is not aware of any new, material information or data that is not included in those market announcements.
Copper Equivalent Calculations
The copper equivalent (CuEq) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage with a metallurgical recovery factor applied.
Copper equivalent (CuEq) grade values were calculated using the formula: CuEq = Cu + Au * 0.60049 * 0.86667.
Where Cu - copper grade (%); Au - gold grade (g/t); 0.60049 - conversion factor (gold to copper); 0.86667 - relative recovery of gold to copper (86.67%).
The copper equivalent formula was based on the following parameters (prices are in USD): Copper price 3.4 $/lb; Gold price 1400 $/oz; Copper recovery 90%; Gold recovery 78%; Relative recovery of gold to copper = 78% / 90% = 86.67%.
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.
For further information please visit the Xanadu Mines’ Website at www.xanadumines.com.
Appendix 2: Kharmagtai Table 1 (JORC 2012)
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 7 June 2023.
JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA
(Criteria in this section apply to all succeeding sections).
Criteria | Commentary |
Sampling techniques |
|
Drilling techniques |
|
Drill sample recovery |
|
Logging |
|
Sub-sampling techniques and sample preparation |
|
Quality of assay data and laboratory tests |
|
Verification of sampling and assaying |
|
Location of data points |
|
Data spacing and distribution |
|
Orientation of data in relation to geological structure |
|
Sample sCuEqrity |
|
Audits or reviews |
|
JORC TABLE 1 - SECTION 2 - REPORTING OF EXPLORATION RESULTS
(Criteria in this section apply to all succeeding sections).
Criteria | Commentary |
Mineral tenement and land tenure status |
|
Exploration done by other parties |
|
Geology |
|
Drill hole Information |
|
Data Aggregation methods |
Copper equivalent (CuEq) grade values were calculated using the following formula: CuEq = Cu + Au * 0.62097 * 0.8235, Gold Equivalent (eAu) grade values were calculated using the following formula: eAu = Au + Cu / 0.62097 * 0.8235. Where: Cu - copper grade (%) Au - gold grade (g/t) 0.62097 - conversion factor (gold to copper) 0.8235 - relative recovery of gold to copper (82.35%) The copper equivalent formula was based on the following parameters (prices are in USD):
|
Relationship between mineralisation on widths and intercept lengths |
|
Diagrams |
|
Balanced reporting |
|
Other substantive exploration data |
|
Further Work |
|
JORC TABLE 1 - SECTION 3 - ESTIMATION AND REPORTING OF MINERAL RESOURCES
Mineral Resources are not reported so this is not applicable to this Announcement. Please refer to the Company’s ASX Announcement dated 1 December 2021 for Xanadu’s most recent reported Mineral Resource Estimate and applicable Table 1, Section 3.
JORC TABLE 1 - SECTION 4 - ESTIMATION AND REPORTING OF ORE RESERVES
Ore Reserves are not reported so this is not applicable to this Announcement.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b0c9d0f2-1666-48e7-9f05-a28c2dd2da15
https://www.globenewswire.com/NewsRoom/AttachmentNg/536d8e9a-10f7-4e47-862b-e10fb15b3597
https://www.globenewswire.com/NewsRoom/AttachmentNg/70e880b3-7c7e-46ec-9c47-0001672a2b89
https://www.globenewswire.com/NewsRoom/AttachmentNg/0c36ff9c-46ec-4e78-bdc6-8d2b0cee96bb
https://www.globenewswire.com/NewsRoom/AttachmentNg/33c0dd99-000d-4886-8973-3f935c39b4a6
https://www.globenewswire.com/NewsRoom/AttachmentNg/f76bd2bf-4e4a-410e-acb7-4a8727fccbe4
https://www.globenewswire.com/NewsRoom/AttachmentNg/ac612b56-1a68-48bd-b5a2-d72beeff01ac