Wednesday, July 30, 2014

Xanadu Mines expands copper-gold discovery in Mongolia

Xanadu Mines (ASX:XAM) has released further strong copper gold results from its Altan Tolgoi project in Mongolia, after revealing assays from the first 550 metres of drilling last week.

The first 550 metres encountered a broad mineralised section grading 0.64% copper equivalent.

Following re-assay of material towards the end of the hole, higher grade sections of 242.7 metres at 0.55% copper and 0.75g/t gold for 1.02% copper equivalent from 358.3 metres, and 132 metres at 0.65% copper plus 0.89g/t gold for 1.21% copper equivalent from 468 metres have been confirmed.

The latest mineralisation identified is predominantly hosted in tourmaline breccia and minor zones of relic quartz-chalcopyrite stockwork.

This is in addition to earlier results where high grade extensions to the west of Altan Tolgoi included 160 metres grading 0.47% copper and 0.85g/t gold from 110 metres in KHDDH338; and 42 metres grading 0.56% copper and 0.72g/t gold from 202 metres in KHDDH340.

Drilling at KHDDH344 is now underway a further 50 metres to the east and continues to intersect visible copper sulphides comprising disseminated and breccia-hosted coarse grained chalcopyrite hosted by a strongly tourmaline-magnetite altered quartz monzodiorite.

The Kharmagtai project is located in the South Gobi porphyry copper province which hosts Rio Tinto's Oyu Tolgoi copper-gold operation.

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.

Xanadu is still only in the very early stages of its exploration program but has already added significantly to the high grade mineralisation within the Kharmagtai project.

These most recent results in particular represent a material increase in the mineralised envelope at Altan Tolgoi and indicate that Xanadu may be on the edge of a much larger system with good potential for bulk-tonnage copper-gold mineralised zones of economic grades.

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