New Extension to Gold-Rich High-Grade Copper Zone at Kharmagtai
TORONTO, March 24, 2021 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu or the Company) is pleased to report the results of diamond drill hole KHDDH563, 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 KHDDH563 intersects a broad zone of high-grade gold-rich chalcopyrite and bornite mineralisation south of the Stockwork Hill resource, expanding the high grade bornite zone beyond the defined resources
- KHDDH563 intersects 181.4m @ 0.68% Cu and 1.78g/t Au (1.59% eCu) from 648.6m
Including 92m @ 1.06% Cu and 3.23g/t Au (2.71% eCu) from 686m
- KHDDH563 expands high-grade mineralisation 70m south and up-dip of previously reported intercept in KHDDH559B
- KHDDH564 identifies new target to the south with similar structural characteristics to the high grade zones at Stockwork Hill
- Deeper step back hole KHDDH564, still in progress, intercepting visual chalcopyrite mineralisation in target zone 400m along down-dip and along strike from KHDDH563.
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “KHDDH563 is the first follow-up hole to our high-grade intercept at KHDH559B. We are pleased to report this delivered our expectation of a clear extension of high-grade gold-rich mineralisation along strike and up-dip, outside the current resource model. This result further demonstrates the growth potential through extension of Stockwork Hill, and our team is designing follow-up drilling to test this exciting new zone.”
About KHDDH563
The purpose of drilling KHDDH563 was to test extensions of Stockwork Hill at depth to inform the second phase of drilling focused on higher grade targets. KHDDH563 was drilled from south of Stockwork Hill towards the north, designed as a scissor hole to KHDDH559B (please see ASX/TSX Announcement dated 15 February 2021). KHDDH563 entered mineralisation at 648.6m, expanding the intercept in KHDDH559B 70m up-dip and to the south (Figures 1 and 2).
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/19e93fbc-f4e3-4bca-8df3-1f313c374fed
KHDDH563 intersected;
181.4m @ 0.68% Cu and 1.78g/t Au (1.59% eCu) from 648.6m
Including 169m @ 0.72% Cu and 1.91g/t Au (1.7% eCu) from 651m
Including 105.6m @ 0.99% Cu and 2.89g/t Au (2.46% eCu) from 680m
Including 92m @ 1.06% Cu and 3.23g/t Au (2.71% eCu) from 686m
It is noteworthy that this maintains the gold tenor of the deeper, high-grade bornite mineralisation seen in KHDDH559B (previously announced), with between 2-4 g/t Au for each percent in copper.
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). Drill Hole KHDDH564 was collared in early March to test this new target and is currently drilling visible sulphide mineralisation within the expected target zone (Figure 4).
About KHDDH564
Drill hole KHDDH564 is designed as a large-scale step out (400m to the south), targeting a repeat of the high-grade bornite zone at Stockwork Hill (Figure 1 and 2). KHDDH564 is currently at 1,200m and entered visible sulphide mineralisation within the predicted target zone at ~1,180m (Figure 4).
Additionally, KHDDH564 passed through a zone of tourmaline breccia (main host rock copper and gold mineralisation) between 570m and 740m (Figure 5). This zone of tourmaline breccia is identical to the tourmaline breccia found above the strongly mineralised tourmaline breccia at Stockwork Hill, identifying another significant target at Kharmagtai. The tourmaline breccia at Stockwork Hill is zoned, with an outer shell of pyrite bearing tourmaline breccia surrounding the high-grade chalcopyrite zone. Interestingly, this zone of breccia terminated against a fault, indicating it has been offset. Structural work is underway to understand the offset on this fault and determine the location of potentially copper bearing tourmaline breccia.
Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5ac4b027-6f4e-45d4-8d19-b1e53e9be4db
Final Assay Results KHDDH559B
Final assay results from the tail of KHDDH559B have been received. These results did not change the reported intercept (see ASX/TSX Announcement dated 15 February 2021). The remainder of the hole returned broad intervals of patchy low grade copper mineralisation with a narrow intercept at the end of the hole returning 5m @ 1.13g/t Au, relating to a narrow (2m @ 4.91g/t Au) epithermal vein.
Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1241eb25-1548-42d4-bd84-59162f17acc5
Figure 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4a9c02a6-8ea7-42d2-a8e4-09b098a73351
Figure 5 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c7b34434-7ee1-475b-b9d7-9eb93cced7e4
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
Table 1: Drill hole collar
Hole ID | Prospect | East | North | RL | Azimuth (°) | Inc (°) | Depth (m) |
KHDDH559B | Stockwork Hill | 592867 | 4878060 | 1163 | 190 | -53 | 1120.1 |
KHDDH563 | Stockwork Hill | 592690 | 4877190 | 1296 | 0 | -60 | 951.0 |
KHDDH564 | Stockwork Hill | 592668 | 4876649 | 1299 | 0 | -60 | 1200.0 |
Table 2: Significant drill results
Hole ID | Prospect | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | CuEq (%) | AuEq (g/t) |
KHDDH559B | Stockwork Hill | 218 | 226 | 8 | 0.14 | 0.11 | 0.18 | 0.35 |
and | 236 | 248 | 12 | 0.09 | 0.06 | 0.10 | 0.20 | |
and | 284 | 564 | 280 | 0.36 | 0.46 | 0.64 | 1.26 | |
and | 290 | 294 | 4 | 0.19 | 0.28 | 0.38 | 0.74 | |
including | 308 | 554 | 246 | 0.40 | 0.51 | 0.71 | 1.39 | |
including | 318 | 336 | 18 | 0.28 | 0.67 | 0.81 | 1.58 | |
including | 346 | 472 | 126 | 0.50 | 0.70 | 0.96 | 1.87 | |
including | 346 | 360 | 14 | 1.23 | 2.36 | 2.99 | 5.84 | |
including | 370 | 374 | 4 | 0.53 | 1.11 | 1.37 | 2.69 | |
including | 392 | 414 | 22 | 0.74 | 0.73 | 1.11 | 2.17 | |
including | 510 | 518 | 8 | 0.97 | 0.27 | 0.76 | 1.49 | |
including | 534 | 546 | 12 | 0.34 | 0.41 | 0.58 | 1.14 | |
and | 611.8 | 838 | 226.2 | 1.43 | 0.68 | 1.41 | 2.75 | |
including | 615 | 790 | 175 | 1.83 | 0.84 | 1.78 | 3.47 | |
including | 617 | 637 | 20 | 2.09 | 1.09 | 2.16 | 4.22 | |
including | 617 | 635 | 18 | 2.28 | 1.15 | 2.32 | 4.53 | |
including | 649 | 783 | 134 | 2.04 | 0.89 | 1.93 | 3.77 | |
including | 651 | 712 | 61 | 3.76 | 1.43 | 3.36 | 6.57 | |
including | 756 | 763 | 7 | 1.67 | 1.07 | 1.92 | 3.76 | |
and | 848 | 908 | 60 | 0.05 | 0.09 | 0.11 | 0.22 | |
and | 928 | 938 | 10 | 0.05 | 0.08 | 0.11 | 0.21 | |
and | 970.3 | 994 | 23.7 | 0.13 | 0.10 | 0.16 | 0.32 | |
and | 1115 | 1120.1 | 5.1 | 1.13 | 0.05 | 0.62 | 1.22 | |
KHDDH563 | Stockwork Hill | 322 | 332 | 10 | 0.06 | 0.12 | 0.15 | 0.29 |
and | 648.6 | 830 | 181.4 | 1.78 | 0.68 | 1.59 | 3.11 | |
including | 651 | 820 | 169 | 1.91 | 0.72 | 1.70 | 3.32 | |
including | 664 | 668 | 4 | 0.40 | 0.52 | 0.72 | 1.41 | |
including | 680 | 785.6 | 105.6 | 2.89 | 0.99 | 2.46 | 4.82 | |
including | 686 | 778 | 92 | 3.23 | 1.06 | 2.71 | 5.30 | |
and | 860 | 937.1 | 77.1 | 0.10 | 0.19 | 0.24 | 0.47 | |
including | 888 | 892 | 4 | 0.07 | 0.30 | 0.34 | 0.66 | |
including | 906 | 936 | 30 | 0.16 | 0.27 | 0.35 | 0.69 | |
including | 928 | 934 | 6 | 0.38 | 0.42 | 0.62 | 1.20 | |
and | 947.5 | 951 | 3.5 | 0.05 | 0.35 | 0.38 | 0.74 |
Table 3: Selected copper and gold assay results for the high-grade zone
Hole ID | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | CuEq (%) | AuEq (g/t) |
KHDDH563 | 680 | 682 | 2 | 0.45 | 0.43 | 0.66 | 1.29 |
KHDDH563 | 682 | 684 | 2 | 0.60 | 0.25 | 0.55 | 1.08 |
KHDDH563 | 684 | 686 | 2 | 0.95 | 0.37 | 0.85 | 1.67 |
KHDDH563 | 686 | 688 | 2 | 1.65 | 1.27 | 2.11 | 4.12 |
KHDDH563 | 688 | 690 | 2 | 3.40 | 1.39 | 3.12 | 6.11 |
KHDDH563 | 690 | 692 | 2 | 1.25 | 0.38 | 1.02 | 2.00 |
KHDDH563 | 692 | 694 | 2 | 1.12 | 0.32 | 0.89 | 1.75 |
KHDDH563 | 694 | 696 | 2 | 1.73 | 0.35 | 1.23 | 2.41 |
KHDDH563 | 696 | 698 | 2 | 2.39 | 1.00 | 2.22 | 4.34 |
KHDDH563 | 698 | 700 | 2 | 2.49 | 0.69 | 1.97 | 3.84 |
KHDDH563 | 700 | 702 | 2 | 2.66 | 0.83 | 2.19 | 4.29 |
KHDDH563 | 702 | 704 | 2 | 1.53 | 0.59 | 1.37 | 2.69 |
KHDDH563 | 704 | 706 | 2 | 0.96 | 0.29 | 0.78 | 1.53 |
KHDDH563 | 706 | 708 | 2 | 1.78 | 0.79 | 1.70 | 3.32 |
KHDDH563 | 708 | 710 | 2 | 2.21 | 0.64 | 1.77 | 3.46 |
KHDDH563 | 710 | 712 | 2 | 4.27 | 1.59 | 3.77 | 7.37 |
KHDDH563 | 712 | 714 | 2 | 7.71 | 1.83 | 5.77 | 11.28 |
KHDDH563 | 714 | 716 | 2 | 15.75 | 3.45 | 11.50 | 22.50 |
KHDDH563 | 716 | 718 | 2 | 7.22 | 2.11 | 5.80 | 11.35 |
KHDDH563 | 718 | 720 | 2 | 6.33 | 1.77 | 5.01 | 9.79 |
KHDDH563 | 720 | 722 | 2 | 1.15 | 0.47 | 1.05 | 2.06 |
KHDDH563 | 722 | 724 | 2 | 0.79 | 0.50 | 0.90 | 1.76 |
KHDDH563 | 724 | 726 | 2 | 1.44 | 0.59 | 1.33 | 2.60 |
KHDDH563 | 726 | 728 | 2 | 2.41 | 0.80 | 2.03 | 3.98 |
KHDDH563 | 728 | 730 | 2 | 5.08 | 1.53 | 4.13 | 8.07 |
KHDDH563 | 730 | 732 | 2 | 5.80 | 1.26 | 4.22 | 8.25 |
KHDDH563 | 732 | 734 | 2 | 10.80 | 2.14 | 7.66 | 14.98 |
KHDDH563 | 734 | 736 | 2 | 4.42 | 1.04 | 3.30 | 6.44 |
KHDDH563 | 736 | 738 | 2 | 2.57 | 1.13 | 2.44 | 4.78 |
KHDDH563 | 738 | 740 | 2 | 2.62 | 0.88 | 2.22 | 4.34 |
KHDDH563 | 740 | 742 | 2 | 4.73 | 1.82 | 4.23 | 8.28 |
KHDDH563 | 742 | 744 | 2 | 4.58 | 0.95 | 3.29 | 6.43 |
KHDDH563 | 744 | 746 | 2 | 4.49 | 1.08 | 3.38 | 6.60 |
KHDDH563 | 746 | 748 | 2 | 2.92 | 0.94 | 2.43 | 4.75 |
KHDDH563 | 748 | 750 | 2 | 2.89 | 0.92 | 2.40 | 4.69 |
KHDDH563 | 750 | 752 | 2 | 2.24 | 0.72 | 1.86 | 3.65 |
KHDDH563 | 752 | 754 | 2 | 1.18 | 0.40 | 1.00 | 1.95 |
KHDDH563 | 754 | 756 | 2 | 1.94 | 0.52 | 1.51 | 2.96 |
KHDDH563 | 756 | 758 | 2 | 1.97 | 0.66 | 1.67 | 3.26 |
KHDDH563 | 758 | 760 | 2 | 3.24 | 1.76 | 3.42 | 6.68 |
KHDDH563 | 760 | 762 | 2 | 3.19 | 2.45 | 4.08 | 7.98 |
KHDDH563 | 762 | 764 | 2 | 0.96 | 0.50 | 0.99 | 1.94 |
KHDDH563 | 764 | 766 | 2 | 1.35 | 0.65 | 1.34 | 2.62 |
KHDDH563 | 766 | 768 | 2 | 1.44 | 0.79 | 1.52 | 2.98 |
KHDDH563 | 768 | 770 | 2 | 0.71 | 0.45 | 0.82 | 1.60 |
KHDDH563 | 770 | 772 | 2 | 1.57 | 0.78 | 1.58 | 3.09 |
KHDDH563 | 772 | 774 | 2 | 2.52 | 0.96 | 2.25 | 4.41 |
KHDDH563 | 774 | 776 | 2 | 3.17 | 1.86 | 3.48 | 6.81 |
KHDDH563 | 776 | 778 | 2 | 1.73 | 1.07 | 1.95 | 3.82 |
KHDDH563 | 778 | 780 | 2 | 0.70 | 0.54 | 0.89 | 1.75 |
KHDDH563 | 780 | 782 | 2 | 0.63 | 0.59 | 0.91 | 1.79 |
KHDDH563 | 782 | 784 | 2 | 0.41 | 0.59 | 0.80 | 1.56 |
KHDDH563 | 784 | 785.6 | 1.6 | 0.35 | 0.64 | 0.82 | 1.60 |
KHDDH563 | 785.6 | 788 | 2.4 | 0.14 | 0.33 | 0.40 | 0.78 |
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 |
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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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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 |
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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 |
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):
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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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