Gold-Rich High-Grade Zone Extended at Kharmagtai
TORONTO, Feb. 17, 2021 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or “the Company”) is pleased to report the results of diamond drill hole KHDDH559B, located at the Stockwork Hill deposit on the Company’s Kharmagtai porphyry copper and gold project in the South Gobi region of Mongolia (Figures 1 and 2).
Highlights
- Drill hole KHDDH559B intersects a broad zone of high-grade bornite mineralisation south of the Stockwork Hill resource, expanding the high grade bornite zone beyond the defined resources.
- KHDDH559B intersects 226.2m @ 0.68% Cu and 1.43g/t Au (1.41% eCu) from 611.8m
Including 175m @ 0.84% Cu and 1.83g/t Au (1.78% eCu) from 615m
Including 61m @ 1.43% Cu and 3.76g/t Au (3.36% eCu) from 651m
- Highest density of bornite mineralisation encountered at Kharmagtai to date.
- Similar mineralisation to that seen at the high-grade Hugo Dummett deposit within the giant Oyu Tolgoi mine, highlighting the potential of Kharmagtai.
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “KHDDH559B is a very significant drill hole for the Kharmagtai project. This is the first time we have seen this density of bornite mineralisation at Kharmagtai. This hole provides a snapshot of what the lower zones of mineralisation at Kharmagtai could look like with increasing gold to copper ratios. The tenor of gold within the bornite is impressive, containing two to four grams of gold for every percent copper. This hole materially expands the width of the high-grade bornite zone and will help guide drilling for additional high-grade extensions. Our team is currently designing follow up drilling to test this exciting new target”.
About KHDDH559B
The purpose of drilling KHDDH599B was to test extensions of Stockwork Hill at depth to inform the second phase of drilling focused on higher grade targets. KHDDH599B was drilled from the northern edge of Stockwork Hill southwards across the deposit and was designed to expand the northern edge of the tourmaline breccia mineralisation and then expand the high-grade bornite zone towards the south (Figures 1 and 2).
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/06cdb775-6e71-4695-a6d6-4589ef0b1bb8
KHDDH559B intersected two zones of mineralisation, an upper tourmaline breccia zone and a lower high-grade bornite zone. KHDDH559B entered tourmaline breccia mineralisation at 288m widening the main tourmaline breccia zone by 25m to the north. The drill hole entered high-grade bornite mineralisation at 617m, encountering a wide zone of very high-grade gold rich copper sulphide mineralisation (see Table 2) and expanding the bornite zone by 100m in total (50m to the north and 50m to the south) (Figure 1).
The upper tourmaline breccia zone in KHDDH559B intersected;
280m @ 0.46% Cu and 0.36g/t Au (0.64%eCu) from 284m
Including 14m @ 2.36% Cu and 1.23 g/t Au (2.99% eCu) from 346m
And 22m 0.73% Cu and 0.74g/t Au (1.11% eCu) from 392m
The lower high-grade bornite zone in KHDDH599B intersected;
226.2m @ 0.68% Cu and 1.43g/t Au (1.41% eCu) from 611.8m
Including 175m @ 0.84% Cu and 1.83g/t Au (1.78% eCu) from 615m
Including 20m @ 1.09% Cu and 2.09g/t Au (2.16% eCu) from 617m
And 134m @ 0.89% Cu and 2.04g/t Au (1.93% eCu) from 649m
Including 61m @ 1.43% Cu and 3.76g/t Au (3.36% eCu) from 651m
And 7m @ 1.07% Cu and 1.67g/t Au (1.92% eCu) from 756m
Of note is the gold tenor of the lower, high-grade bornite mineralisation with between 2-4 g/t Au for each percent in copper, as compared to 1-2 g/t Au observed in the upper, tourmaline breccia mineralisation.
Importantly, structural information from this hole and the surrounding drilling has aided in a new structural interpretation, identifying the potential repeat of high-grade bornite mineralisation south of the current drilling, towards the base of White Hill (Figure 1).
Additionally, the understanding of the relationship between grade and geology is advancing. The highest grades appear to be located on the margins of the tourmaline breccia, where larger fragments allow for more space for copper and gold to precipitate. This combined with the advancing structural framework has defined a clear drill target to the south and below White Hill.
Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0356af15-3ebe-4235-9f1c-5d35188231a6
No additional assays have been received since the Quarterly Report published on 28 January 2021.
Next Steps
Phase 1 drilling at Kharmagtai is nearing completion, having significantly increased the scale of mineralisation at Zaraa and having identified a new zone of higher-grade mineralisation beneath Stockwork Hill. To date this included 33 diamond drill holes for approximately 22,933 metres, testing extensions to higher grade mineralisation at Stockwork Hill, Zaraa and Copper Hill and five new prospects for shallow mineralisation. Assay results have been returned for 21,404 metres with 1,529 metres of assays still pending.
Phase 2 will commence with interim drilling to follow up findings at KHDDH559B, and in parallel a detailed program will be designed to target and define higher grade zones. Phase 2 which will be described in further detail in subsequent releases.
In addition to ongoing drilling results, the Company plans to provide the following updates for its flagship Kharmagtai project and the Red Mountain Project.
º Exploration Update (this release)
º Drilling Phase 1 Program Results (February 2021)
º Exploration Target Update (February 2021)
º Mineral Resource Estimate Update (March 2021)
º Red Mountain exploration drilling results (March 2021)
º Drilling Phase 2 Program Structure (March 2021)
º Kharmagtai and Red Mountain exploration drilling results (April 2021)
Red Mountain
Drilling has recommenced at Red Mountain with two diamond drill rigs targeting large scale copper gold porphyry mineralisation. This drilling program totals 4,300m and is expected to be complete mid to late-March.
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 control an emerging Tier 1 copper-gold deposit in our flagship Kharmagtai project. For information on Xanadu visit: www.xanadumines.com.
Andrew Stewart
CEO
Xanadu Mines Ltd
[email protected]
+61 409 819 922
This Announcement was authorised for release by Xanadu’s Board of Directors.
Appendix 1: Drilling Results
Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/86fc5fe8-e549-443a-97e4-c4e165f93e4e
Table 1: Drill hole collar
Hole ID | Prospect | East | North | RL | Azimuth (°) | Inc (°) | Depth (m) |
KHDDH559B | Stockwork Hill | 592867 | 4878060 | 1163 | 190 | -53 | 1,200.0 |
Table 2: Selected copper and gold assay results for the high-grade bornite zone
Hole ID | From (m) | To (m) | Au (g/t) | Cu (%) | CuEq (%) | AuEq (g/t) |
KHDDH559B | 615 | 617 | 0.28 | 0.23 | 0.38 | 0.74 |
KHDDH559B | 617 | 619 | 2.60 | 1.06 | 2.39 | 4.67 |
KHDDH559B | 619 | 621 | 5.33 | 2.19 | 4.92 | 9.61 |
KHDDH559B | 621 | 623 | 4.10 | 2.08 | 4.18 | 8.17 |
KHDDH559B | 623 | 625 | 4.13 | 1.98 | 4.09 | 7.99 |
KHDDH559B | 625 | 627 | 0.78 | 0.57 | 0.96 | 1.88 |
KHDDH559B | 627 | 629 | 1.00 | 0.94 | 1.45 | 2.83 |
KHDDH559B | 629 | 631 | 0.97 | 0.61 | 1.10 | 2.16 |
KHDDH559B | 631 | 633 | 0.36 | 0.41 | 0.60 | 1.17 |
KHDDH559B | 633 | 635 | 1.25 | 0.54 | 1.18 | 2.30 |
KHDDH559B | 635 | 637 | 0.41 | 0.51 | 0.72 | 1.41 |
KHDDH559B | 637 | 639 | 0.45 | 0.32 | 0.55 | 1.08 |
KHDDH559B | 639 | 641 | 0.21 | 0.45 | 0.55 | 1.08 |
KHDDH559B | 641 | 643 | 0.19 | 0.26 | 0.36 | 0.71 |
KHDDH559B | 643 | 645 | 0.22 | 0.28 | 0.39 | 0.77 |
KHDDH559B | 645 | 647 | 0.12 | 0.17 | 0.23 | 0.44 |
KHDDH559B | 647 | 649 | 0.37 | 0.31 | 0.50 | 0.97 |
KHDDH559B | 649 | 651 | 0.58 | 0.47 | 0.77 | 1.50 |
KHDDH559B | 651 | 653 | 0.64 | 0.75 | 1.08 | 2.10 |
KHDDH559B | 653 | 655 | 0.46 | 0.51 | 0.75 | 1.46 |
KHDDH559B | 655 | 657 | 0.58 | 0.38 | 0.68 | 1.32 |
KHDDH559B | 657 | 659 | 0.84 | 0.56 | 0.99 | 1.93 |
KHDDH559B | 659 | 661 | 0.87 | 0.58 | 1.03 | 2.01 |
KHDDH559B | 661 | 663 | 1.82 | 0.96 | 1.89 | 3.70 |
KHDDH559B | 663 | 665 | 2.14 | 1.05 | 2.14 | 4.19 |
KHDDH559B | 665 | 667 | 1.48 | 0.61 | 1.36 | 2.67 |
KHDDH559B | 667 | 669 | 2.29 | 1.06 | 2.23 | 4.36 |
KHDDH559B | 669 | 671 | 2.04 | 1.07 | 2.11 | 4.13 |
KHDDH559B | 671 | 673 | 4.01 | 2.02 | 4.07 | 7.96 |
KHDDH559B | 673 | 675 | 4.05 | 1.63 | 3.70 | 7.23 |
KHDDH559B | 675 | 677 | 5.06 | 1.81 | 4.39 | 8.59 |
KHDDH559B | 677 | 679 | 8.61 | 2.09 | 6.49 | 12.70 |
KHDDH559B | 679 | 681 | 6.44 | 1.75 | 5.04 | 9.85 |
KHDDH559B | 681 | 683 | 3.69 | 1.92 | 3.81 | 7.44 |
KHDDH559B | 683 | 685 | 4.50 | 1.21 | 3.51 | 6.87 |
KHDDH559B | 685 | 687 | 2.78 | 0.92 | 2.34 | 4.57 |
KHDDH559B | 687 | 689 | 2.74 | 1.29 | 2.69 | 5.26 |
KHDDH559B | 689 | 691 | 5.96 | 2.30 | 5.35 | 10.46 |
KHDDH559B | 691 | 693 | 8.35 | 2.30 | 6.57 | 12.85 |
KHDDH559B | 693 | 695 | 7.13 | 2.15 | 5.80 | 11.33 |
KHDDH559B | 695 | 697 | 9.64 | 3.37 | 8.30 | 16.23 |
KHDDH559B | 697 | 699 | 13.00 | 5.41 | 12.06 | 23.58 |
KHDDH559B | 699 | 701 | 7.46 | 2.08 | 5.89 | 11.53 |
KHDDH559B | 701 | 703 | 1.91 | 0.73 | 1.71 | 3.34 |
KHDDH559B | 703 | 705.5 | 2.82 | 1.16 | 2.60 | 5.08 |
KHDDH559B | 705.5 | 708 | 0.86 | 0.64 | 1.07 | 2.10 |
KHDDH559B | 708 | 710 | 0.63 | 0.40 | 0.72 | 1.40 |
KHDDH559B | 710 | 712 | 1.09 | 0.58 | 1.13 | 2.22 |
KHDDH559B | 712 | 714 | 0.34 | 0.21 | 0.38 | 0.74 |
Appendix 2: Statements and Disclaimers
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.
Competent 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.
Copper Equivalent Calculations
The copper equivalent (eCu) 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. The copper equivalent calculation used is based off the eCu calculation defined by CSA in the 2018 Mineral Resource Upgrade.
Copper equivalent (eCu) grade values were calculated using the following formula:
eCu = Cu + Au * 0.62097 * 0.8235,
Where Cu = copper grade (%); Au = gold grade (gold per tonne (g/t)); 0.62097 = conversion factor (gold to copper); and 0.8235 = relative recovery of gold to copper (82.35%).
The copper equivalent formula was based on the following parameters (prices are in USD): Copper price = 3.1 $/lb (or 6,834 $ per tonne ($/t)); Gold price = 1,320 $ per ounce ($/oz); Copper recovery = 85%; Gold recovery = 70%; and Relative recovery of gold to copper = 70% / 85% = 82.35%.
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 3: 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 11 April 2019.
JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA
(Criteria in this section apply to all succeeding sections).
Criteria | JORC Code explanation | 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 security |
|
|
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 or eCu) grade values were calculated using the following formula: eCu or 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): º Copper price - 3.1 $/lb (or 6834 $/t) º Gold price - 1320 $/oz º Copper recovery - 85% º Gold recovery - 70% º Relative recovery of gold to copper = 70% / 85% = 82.35%. |
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
(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)
Criteria | Commentary |
Database integrity |
|
Site visits |
|
Geological interpretation |
|
Dimensions |
|
Estimation and modelling techniques |
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): Copper price - 3.1 $/lb (or 6834 $/t) Gold price - 1320 $/oz Copper recovery - 85% Gold recovery - 70% Relative recovery of gold to copper = 70% / 85% = 82.35%. |
Moisture |
|
Cut-off parameters |
|
Mining factors or assumptions |
|
Metallurgical factors or assumptions |
|
Environmental factors or assumptions |
|
Bulk density |
|
Classification |
|
Audits or reviews |
|
Discussion of relative accuracy/ confidence |
|
JORC TABLE 1 - SECTION 4 - ESTIMATION AND REPORTING OF ORE RESERVES
Ore Reserves are not reported so this is not applicable to this announcement.