Xanadu Mines to drill highly prospective Solenker epithermal gold and silver project in Mongolia
Xanadu Mines (ASX: XAM) has commenced a much anticipated drill program at the highly prospective Solenker Epithermal gold and silver project in southern Mongolia, which contains high grade drill targets.
A recent comprehensive geophysics program at the joint venture project identified the targets and a multi-purpose drill has been contracted and is currently onsite.
The company is known to be "bullish" about the potential at Solenker where historical exploration unearthed anomalies from shallow drilling but had been discouraged by the windfall profits tax on gold at the time.
Brian Thornton, Xanadu’s chairman, said “Xanadu was fortunate to acquire this highly prospective ground and has subsequently defined 3 potentially high grade low sulphidation epithermal targets.
"The 2,000 metre diamond drilling program planned will run until the onset of winter with results released progressively over the next 3 months.”
A comprehensive geophysics program of ground magnetics and dipole-dipole induced polarisation has been recently completed at Suug and Zost and numerous additional drill targets have been generated.
The Elgen-Zost-Suug licences are located in the Dornogovi Province of southern Mongolia, about 750 kilometres south-southeast of Ulaanbaatar and less than 50 kilometres from the Chinese border.
Xanadu’s strategy is to target energy and metals opportunities in the Trans-Mongolian rail corridor, near rail infrastructure or within close proximity to the Chinese border in order to capitalise on opportunities to meet the burgeoning energy and metals needs of China and nearby Asian markets.
Under the terms of the joint venture agreement, Xanadu, which has a 51% interest, can earn up to 80% of the Elgen-Zost-Suug exploration licences by meeting various spending commitments. Xanadu has retained a 100% interest in any other commodities that may be found on the licences.
The five large exploration licenses which make up the Solenker Gold Project, covering more than 400 square kilometres, lie along the southern border with China and host the three low sulphidation epithermal precious metal targets at Suug, Zost Uul and Elgen Uul. All prospects are interpreted to represent the upper levels of a low sulphidation epithermal system enriched in gold.
With moderate reliefs of about 50 metres at Suug, Zost Uul and Elgen Uul the epithermal alteration systems are reasonably well exposed.
Xanadu was listed on the ASX on 21 December 2010 and currently has two thermal coal assets, Galshar and Khar Tarvaga, and is progressing exploration of its highly prospective suite of licences for coal (coking at Nuurstei and Javkhalant), copper and gold in the south east Gobi.
The company has a six year track record in Mongolia and recently acquired the highly prospective Sharchuluut Uul porphyry copper project 40km from the Erdenet copper mine in north-west Mongolia, which is the largest copper producer in the region.
A recent comprehensive geophysics program at the joint venture project identified the targets and a multi-purpose drill has been contracted and is currently onsite.
The company is known to be "bullish" about the potential at Solenker where historical exploration unearthed anomalies from shallow drilling but had been discouraged by the windfall profits tax on gold at the time.
Brian Thornton, Xanadu’s chairman, said “Xanadu was fortunate to acquire this highly prospective ground and has subsequently defined 3 potentially high grade low sulphidation epithermal targets.
"The 2,000 metre diamond drilling program planned will run until the onset of winter with results released progressively over the next 3 months.”
A comprehensive geophysics program of ground magnetics and dipole-dipole induced polarisation has been recently completed at Suug and Zost and numerous additional drill targets have been generated.
The Elgen-Zost-Suug licences are located in the Dornogovi Province of southern Mongolia, about 750 kilometres south-southeast of Ulaanbaatar and less than 50 kilometres from the Chinese border.
Xanadu’s strategy is to target energy and metals opportunities in the Trans-Mongolian rail corridor, near rail infrastructure or within close proximity to the Chinese border in order to capitalise on opportunities to meet the burgeoning energy and metals needs of China and nearby Asian markets.
Under the terms of the joint venture agreement, Xanadu, which has a 51% interest, can earn up to 80% of the Elgen-Zost-Suug exploration licences by meeting various spending commitments. Xanadu has retained a 100% interest in any other commodities that may be found on the licences.
The five large exploration licenses which make up the Solenker Gold Project, covering more than 400 square kilometres, lie along the southern border with China and host the three low sulphidation epithermal precious metal targets at Suug, Zost Uul and Elgen Uul. All prospects are interpreted to represent the upper levels of a low sulphidation epithermal system enriched in gold.
With moderate reliefs of about 50 metres at Suug, Zost Uul and Elgen Uul the epithermal alteration systems are reasonably well exposed.
Xanadu was listed on the ASX on 21 December 2010 and currently has two thermal coal assets, Galshar and Khar Tarvaga, and is progressing exploration of its highly prospective suite of licences for coal (coking at Nuurstei and Javkhalant), copper and gold in the south east Gobi.
The company has a six year track record in Mongolia and recently acquired the highly prospective Sharchuluut Uul porphyry copper project 40km from the Erdenet copper mine in north-west Mongolia, which is the largest copper producer in the region.
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