Xanadu Mines: Exceptional New Shallow Oxide Gold Drill Intersections From Kharmagtai
TORONTO, Aug. 26, 2019 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or “the Company”) is pleased to announce the second batch of assay results from its oxide gold drilling program at its flagship Kharmagtai Project in southern Mongolia (Figures 1 and 2). These results form part of the Company’s current 2019 drilling program, with significant progress made towards defining a shallow oxide gold resource.
- Significant shallow oxide gold intersects include:
Drill hole KHDDH499 returns 40m at 2.91g/t Au from surface
including 37m @ 3.14g/t Au from surface
including 21m @ 5.20g/t Au from surface
Drill hole KHDDH498 returns 40m at 1.72g/t Au from surface
including 36m @ 1.85g/t Au from 4m
Drill hole KHDDH494 returns 40m at 1.50g/t Au from surface
including 34m @ 1.75g/t Au from 6m
- Latest drilling confirms continuity of mineralisation within a single high-grade gold zone
- Results are very encouraging and demonstrate excellent potential for a shallow oxide resource
- Plans are being developed to test the Copper Hill and Golden Eagle Oxide Gold zones
The new results have significantly increased the Company’s confidence in the emerging oxide gold opportunity at Kharmagtai. Stockwork Hill is the first prospect to be drilled outside and above the Kharmagtai copper-gold deposit, highlighting the under-explored nature of the broader project. The drill program is designed to extend both strike and depth to the significant shallow oxide gold mineralisation at Kharmagtai.
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “We are very pleased by these new drill results from the mineralised oxide zone above the Stockwork Hill copper-gold deposit, which have delivered some pleasant surprises – not least of which are the much higher-than-anticipated gold grades, which are significant given the wide-spaced reconnaissance nature of this initial phase of drilling. To have such high gold grades defined so early is promising and supports our interpretation of an east-west zone of mineralisation, which presents as an outstanding target for further step-out drilling.
Given the shallow nature of the mineralisation, these outstanding gold intercepts generated at Stockwork Hill show just how underexplored the broader Kharmagtai Project is for oxide gold mineralisation and validates the current plan of developing a low-cost, high-value gold starter project at Kharmagtai.
Our long running objective is to develop Mongolia’s next large-scale open-pit copper and gold deposit. We are encouraged by what we see at Stockwork Hill, particularly the grade and potential scale and strike extent of the oxide system. The new results demonstrate clear progress, and 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.”
HIGH-GRADE OXIDE RESULTS FROM STOCKWORK HILL
The initial eight-hole drill program has been extended to a twenty-one-hole program to quickly and economically test one of the main oxide gold targets at Kharmagtai, to confirm the expected gold grades and characterise the gold deportment. Holes have been drilled PQ and designed to test five sections across the oxide cap, with other holes designed to test above the sulphide zones to the northwest.
Drill results from an additional eight drill holes have been received. Table 1 contains the calculated assay intervals, Table 2 contains the drill hole collar locations and Figures 3 shows a plan view of the drilling.
COMPETENT-QUALIFIED 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.
Table 1: Currently returned assay intercepts for Stockwork Hill
|Hole ID||Prospect||From (m)||To (m)||Interval (m)||Au (g/t)|
Table 2: Drill hole collar location
|Hole ID||Prospect||East||North||RL||Azimuth (°)||Inc (°)||Depth (m)|
For further information, please contact:
Chief Executive Officer
T: +612 8280 7497
M: +61 409 819 922