Shallow Bornite Mineralisation at Red Mountain
TORONTO, March 23, 2021 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or “the Company”) is pleased to report that diamond drill hole OUDDH100 at the Red Mountain joint venture with the Japan Oil, Gas and Metals National Corporation (JOGMEC JV) copper-gold project (Figures 1 and 2) has intersected a significant zone (up to 16 metres) of very high-grade bornite-rich massive sulphide mineralisation.
Highlights
- Diamond drill hole OUDDH100 intersects high-grade massive sulphide, bornite-rich copper mineralisation at Stairy Target:
- 4m @ 15.85% Cu from 55m within
- 16m grading 4.09% Cu from 54m
- Reinforces the potential for shallow, high-grade mineralisation, which may provide options for early development ahead of potential larger porphyry deposits at depth
- The full extent of the discovery at the Stairy prospect is still unknown with surface mapping indicating the prospective area of mineralisation is 1.5km long and 1km wide
- The Stairy prospect is one of several similar targets within the Red Mountain project area
- The drilling phase of the 4,400m Red Mountain Stage 2 program is now largely completed and awaiting further assay results
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “These new high-grade assay results are very exciting, and represent the highest-grade copper mineralisation discovered to date at Red Mountain. We are very encouraged by the intersection of bornite-rich massive sulphide mineralisation associated with the upper part of a porphyry system. This drill hole supports Xanadu’s interpretation that the district has potential to harbour a combination of deposit styles, including large-scale porphyry mineralisation, gold-rich skarns, and shallow high-grade massive sulphide/vein-hosted mineralisation which provide future options for early development ahead of potential larger porphyry deposits at depth. “
Assay results and geological interpretation from hole drill hole OUDDH100 at the Stairy prospect indicates multiple copper bearing structures with various orientations (Figure 3) with local high-grade mineralisation (Table 1), including the highest copper grades yet drilled at Stairy.
https://www.globenewswire.com/NewsRoom/AttachmentNg/fd68c977-ac65-4414-8460-28111accb74a
The Stairy prospect consists of a 1.5km by 1km zone of sheeted mineralised structures hosted within the Stairy Intrusive in the central east of the Red Mountain Mining Lease. These structures are interpreted to be sub-vertical, up to twenty-four meters wide and can extend for over a kilometre. Copper mineralisation at Stairy consists of bornite and chalcopyrite sulphide with quartz carbonate fill. The current geological interpretations suggest these sheeted structures may be linked to a large-scale porphyry system at depth.
Drill hole OUDDH100 encountered a zone of extremely high-grade bornite mineralisation (Figure 4) from 54m and has returned;
OUDDH100 returns 16m @ 4.09% Cu from 54m
Including 4m @ 15.85% Cu from 55m
And 26m @ 0.31% Cu from 172m
Full intercepts can be found in Table 3.
About the Red Mountain Drilling Program
The current drilling program consists of 4,400m of drilling targeting high-grade porphyry mineralisation. Drilling has been completed and partial drill results are being returned (Table 1). The results from this drilling will be compiled and interpreted and follow-up drilling will be planned for Q2-Q3, 2021.
Table 1: Red Mountain Drill Program
Prospect | Hole ID | Phase 2 Metres Planned | Metres Drilled | Assays Returned | Assays Pending |
Bavuu | OUDDH098 | 600m | 600m | 314 | 0 |
Vein 10 | OUDDH099 | 300m | 300m | 153 | 0 |
Stairy | OUDDH100 | 500m | 513.6m | 270 | 0 |
Target 42 | OUDDH101 | 800m | 800m | 108 | 299 |
Bavuu | OUDDH102 | 700m | 700m | 0 | 353 |
Stockwork | OUDDH103 | 400m | 400m | 0 | 213 |
Breccia Hill | OUDDH104 | 800m | 800m | 0 | 403 |
Stockwork | OUDDH105 | 300m | 318.4m | 0 | 172 |
Total Drilling | 4,400m | 4,432m | 845 | 1440 |
About Red Mountain
The Red Mountain JOGMEC JV project located within the Dornogovi Province of southern Mongolia, approximately 420 kilometres southeast of Ulaanbaatar (Figure 1), is a joint venture between Xanadu and JOGMEC. The project covers approximately 57 square kilometres in a frontier terrane with significant mineral endowment and has a granted 30-year mining licence. Red Mountain comprises a cluster of outcropping mineralising porphyry intrusions which display features typically found in the shallower parts of porphyry systems where narrow dykes and patchy mineralisation branch out above a mineralised stock. This underexplored porphyry district includes multiple porphyry copper-gold centres, mineralised tourmaline breccia pipes copper-gold/base metal skarns and high-grade epithermal gold veins.
Joint Venture with JOGMEC
JOGMEC may earn up to 51% beneficial interest in the project by sole funding up to $US7.2 million in exploration expenditure over the next 4 years. Exploration objectives of the earn-in deal are to discover Mongolia’s next world-class copper-porphyry deposit.
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e4edcfca-e3b9-4a0a-932d-1223daabd9e3
Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e84b814f-237f-43ff-b2e5-4c24d72890f1
Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fd68c977-ac65-4414-8460-28111accb74a
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.
For further information, please contact:
Andrew Stewart
Chief Executive Officer
T: +61 2 8280 7497
M: +61 409 819 922
E: [email protected]
W: www.xanadumines.com
This Announcement was authorised for release by Xanadu’s Board of Directors.
Appendix 1: Drilling Results
Figure 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9f635a96-c8fe-4702-aea1-cbde55f320ce
Table 2: Drill hole collar
Hole ID | Prospect | East | North | RL | Azimuth (°) | Inc (°) | Depth (m) |
OUDDH098 | Bavuu | 376100 | 4938900 | 1088 | 0 | -75 | 600.0 |
OUDDH099 | Vein 10 | 377250 | 4940400 | 1088 | 0 | -75 | 300.0 |
OUDDH100 | Stariy | 378390 | 4939900 | 1062 | 180 | -60 | 513.6 |
OUDDH101 | Target 42 | 372700 | 4939800 | 1060 | 0 | -70 | 800.0 |
OUDDH102 | Bavuu | 376700 | 4940200 | 1073 | 0 | -65 | 700.0 |
OUDDH103 | Stockwork | 372719 | 4939333 | 1093 | 0 | -65 | 400.0 |
OUDDH104 | Breccia Hill | 375450 | 4937550 | 1041 | 180 | -60 | 800.0 |
OUDDH105 | Stockwork | 373506 | 4939259 | 1085 | 180 | -60 | 318.4 |
Table 3: Selected copper and gold assay results for the high-grade bornite zone
Hole ID | Prospect | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | CuEq (%) | AuEq (g/t) | |
OUDDH098 | Bavuu | 283.9 | 288 | 4.1 | 0.02 | 0.11 | 0.12 | 0.24 | |
OUDDH099 | Vein 10 | 48 | 50 | 2 | 0.61 | 0.04 | 0.36 | 0.70 | |
and | 80 | 84 | 4 | 0.06 | 0.11 | 0.14 | 0.28 | ||
and | 98 | 136 | 38 | 0.20 | 0.17 | 0.27 | 0.52 | ||
including | 100 | 106 | 6 | 0.85 | 0.51 | 0.95 | 1.85 | ||
including | 100 | 104 | 4 | 1.12 | 0.68 | 1.25 | 2.45 | ||
and | 148 | 300 | 152 | 0.13 | 0.15 | 0.22 | 0.42 | ||
including | 168 | 178 | 10 | 0.28 | 0.31 | 0.45 | 0.88 | ||
including | 170 | 178 | 8 | 0.30 | 0.31 | 0.46 | 0.91 | ||
including | 202 | 234 | 32 | 0.17 | 0.27 | 0.36 | 0.71 | ||
including | 264 | 272 | 8 | 0.29 | 0.25 | 0.40 | 0.78 | ||
OUDDH100 | Stariy | 30 | 44 | 14 | 0.02 | 0.37 | 0.38 | 0.75 | |
including | 32 | 42 | 10 | 0.02 | 0.44 | 0.45 | 0.87 | ||
and | 54 | 70 | 16 | 0.04 | 4.09 | 4.11 | 8.04 | ||
including | 54 | 59 | 5 | 0.11 | 12.83 | 12.89 | 25.20 | ||
including | 55 | 59 | 4 | 0.12 | 15.85 | 15.91 | 31.11 | ||
and | 116 | 124 | 8 | 0.02 | 0.22 | 0.23 | 0.46 | ||
including | 116 | 122 | 6 | 0.02 | 0.25 | 0.26 | 0.51 | ||
and | 144 | 148 | 4 | 0.03 | 0.34 | 0.36 | 0.70 | ||
and | 172 | 198 | 26 | 0.02 | 0.31 | 0.32 | 0.62 | ||
including | 182.3 | 198 | 15.7 | 0.03 | 0.48 | 0.49 | 0.97 | ||
and | 216 | 226 | 10 | 0.03 | 0.30 | 0.31 | 0.61 | ||
and | 474 | 488 | 14 | 0.01 | 0.21 | 0.21 | 0.42 | ||
including | 474 | 486 | 12 | 0.01 | 0.21 | 0.21 | 0.42 | ||
OUDDH101 | Target 42 | Assays Pending | |||||||
OUDDH102 | Bavuu | Assays Pending | |||||||
OUDDH103 | Stockwork | Assays Pending | |||||||
OUDDH104 | Breccia Hill | Assays Pending | |||||||
OUDDH105 | Stockwork | Assays Pending |
Appendix 2: Statements and Disclaimers
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: Red Mountain Table 1 (JORC 2012)
Set out below is Section 1 and Section 2 of Table 1 under the JORC Code, 2012 Edition for the Red Mountain project. Data provided by Xanadu. This Table 1 updates the JORC Table 1 disclosure dated 18 September 2017.
1.1 JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA
Criteria | JORC Code explanation | Commentary |
Sampling techniques |
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Drilling techniques |
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Drill sample recovery |
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Logging |
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Sub-sampling techniques and sample preparation |
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Quality of assay data and laboratory tests |
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Verification of sampling and assaying |
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Location of data points |
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Data spacing and distribution |
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Orientation of data in relation to geological structure |
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Sample security |
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Audits or reviews |
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1.2 JORC TABLE 1 - SECTION 2 - REPORTING OF EXPLORATION RESULTS
(Criteria in this section apply to all succeeding sections).
Criteria | JORC Code (Section 2) Explanation | Commentary |
Mineral tenement and land tenure status |
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Exploration done by other parties |
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Geology |
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Drill hole Information |
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Data Aggregation methods |
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Relationship between mineralisation on widths and intercept lengths |
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Diagrams |
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Balanced Reporting |
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Other substantive exploration data |
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Further Work |
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1.3 JORC TABLE 1 - SECTION 3 ESTIMATION AND REPORTING OF MINERAL RESOURCES
Mineral Resources are not reported so this is not applicable to this report.
1.4 JORC TABLE 1 - SECTION 4 ESTIMATION AND REPORTING OF ORE RESERVES
Ore Reserves are not reported so this is not applicable to this report.