Thursday, July 24, 2014

Xanadu Mines tastes copper and gold success drilling in Mongolia

Xanadu Mines (ASX:XAM) has received assays from step-out drilling at Altan Tolgoi which did not disappoint with widths and good copper and gold grades intersected.

The Kharmagtai project is located in the South Gobi porphyry copper province which hosts the world-class Oyu Tolgoi copper-gold operation.

Hole KHDDH343 returned 505.6 metres at 0.38% copper & 0.35g/t gold from 58 metres. It also intersected visible copper sulphides.

While KHDDH344 intersected visible copper sulphides from 28.1 metres to 114.0 metres and from 223 metres to the current hole depth of 331 metres.

Which points to the potential for bulk-tonnage copper-gold mineralisation. Today's results look be a material increase in the size of the mineralised envelope at Altan Tolgoi.

The hole KHDDH343 was a 100 metres step out from historical drilling and tested a buried IP anomaly along strike from Altan Tolgoi.

Interestingly, higher grade intervals were strengthening down hole and are open at depth.

A second diamond drill rig has moved to Kharmagtai to advance the eastward step out drilling. The rig has started drilling with additional results to be released when received.

Xanadu has the right to earn an 85% interest in the Kharmgtai project, equivalent to a 76.5% effective interest, by funding acquisition and exploration costs.

Kharmagtai project is located 420 kilometres southeast of Ulaanbaatar and 60 kilometres north of the Tavan Tolgoi coal deposit.

Clearly, the Kharmgtai project has legs. The Altan Tolgoi mineralised envelope is expanding and the next drilling will be closely watched.

1 comment:

  1. I hope they won't steal it. It belongs to Mongolia and Mongolian people