Xanadu Accelerates 2021 Exploration Program
TORONTO, June 03, 2021 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or “the Company”) is pleased to update the market on its on-going exploration program for porphyry copper and gold deposits at the Kharmagtai District in the South Gobi region of Mongolia.
Highlights
- 23,000 metres of diamond drilling planned for completion by Q4 of CY2021, utilising three drill rigs
- Funded Exploration Program with three key components:
- High-Grade Definition Program - define scale and tenor of gold-rich, bornite zones underneath current Stockwork Hill, White Hill and Copper Hill resources
- Discovery Drilling Program - drilling of priority targets to identify new discoveries within the Kharmagtai District; and
- Resource Upgrade Program - targeting a resource upgrade beneath the current resource and including large-scale mineralisation at Zaraa
- Targeting approach will utilise data from recent drilling, geophysics, and multispectral core scanning technology on site
- Resource modelling to commence in Q4 of CY2021, on completion of the drill program
- Currently testing deeper extensions at White Hill and Stockwork Hill using 3 drill rigs
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “Xanadu is well capitalised to pursue its exploration program for 2021, aiming to create material value and growth within the Kharmagtai District. Recent exploration successes have confirmed an exciting potential to expand the higher-grade resource and unlock the next stage of development in this district. Our 23,000 metres drilling program will test this potential, and we look forward to updating the market as our program develops.”
Exploration Program
Xanadu has set a goal targeting an increase of the combined Kharmagtai resource to >1 billion tonnes @ ≥0.5% copper equivalent (CuEq) including >100 million tonnes @ ≥0.8% CuEq, with the aim of enabling future development of the Kharmagtai District.
The 23,000-metre drilling program at Kharmagtai is designed around delivery of this goal, with detailed objectives including:
- High-Grade Definition Program – define scale and tenor of gold-rich, bornite zones identified underneath current Stockwork Hill, White Hill and Copper Hill resources;
- Discovery Drilling Program – drilling of priority targets to identify new discoveries on the Kharmagtai District; and
- Resource Upgrade Program – targeting a resource upgrade resource to >1 billion tonnes @ ≥0.5% CuEq including >100 million tonnes @ ≥0.8% CuEq. Define to Indicated status beneath the current resource and large-scale mineralisation at Zaraa.
Figure 1. Kharmagtai District Long Section - Known Mineralisation is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b44048ce-72ea-462c-ace7-a3d1f5923237
Current Drilling
The Exploration Program is currently underway with three active diamond drills - KHDDH569, KHDDH570 and KHDDH571 (Figure 2).
Current drill hole KHDDH571 aims to test the western extension of the gold-rich, bornite zone under Stockwork hill.
Deeper extension of mineralisation under White Hill will be tested by current drill hole KHDDH569.
Current drill hole KHDDH570 will test the eastern extent of Zaraa mineralisation.
Drill holes KHDDH567 and KHDDH568 are both completed and pending assay results.
Figure 2. Current and Recent Drilling Long Section is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4474b06e-9376-4ed6-9e4e-a14620112059
High Grade Definition Program
The drilling program beneath the existing resource focuses directly on delivering the goal of >100Mt at 0.8% CuEq. Drilling will focus on deeper, gold-rich, high grade zones under Stockwork Hill, White Hill and Copper Hill (see purple mineralisation in Figure 3), which are key to achieving this goal.
Results to date beneath the existing Stockwork Hill resource indicate a zone of mineralisation at >1% CuEq, which is relatively long and narrow, shaped similar to a flattened cigar laying at an angle. Assay results from recent drill hole KHDDH565 have more than doubled the potential length of this mineralisation.
Figure 3. Stockwork Hill Long Section - Current and Recent Drilling is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/03359331-35f2-418a-8d6e-5e5531b91d19
(see ASX Announcement Dated 28 May 2021 for KHDDH565 and 566 assay results)
Further drilling will define the full extent and tenure of the known zones and explore for similar high-grade shapes nearby (Figure 4).
Figure 4. Existing Resource Plan View – Current Drilling Locations is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e6fdc47b-e6c2-41f8-923d-0068363a4bdb
Xanadu will methodically test these gold-rich, bornite zones in 2021. To target its drilling, Xanadu will utilise data from the drilling it completed in 2020 and early 2021 and improved data from the core scanning technology now in place at Kharmagtai.
Discovery Drilling Program
Discoveries to date show that Kharmagtai is a district that hosts a complex system of copper-gold porphyries intrusions. As a result, Kharmagtai cannot be treated as a single deposit, and it remains prospective for new discovery across its 70 square kilometre license area.
Xanadu has identified several priority targets for new discovery to be drilled during the CY2021 program (Figure 5). Following completion of current drill holes at Stockwork Hill and Zaraa, Xanadu’s intention is for one drill rig to be focused on discovery drilling.
Figure 5. Kharmagtai District Plan View - Target Areas and Current Drilling is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e9e6bdd3-2408-4247-a40f-13882246b707
Timeline
The 2021 Exploration Program for the Kharmagtai District will be largely completed by early Q4, CY2021. Drill results will be published regularly during the program, with 5 monthly announcements anticipated between June and October 2021. The drill program will initially focus on high grade zones under Stockwork Hill, White Hill and Zaraa deposits.
Xanadu will design dual purpose drilling where possible to deliver specific intercepts and to provide the necessary data to define resources to Indicated status. Modelling to update the 2018 Mineral Resource Estimate (please refer to ASX Announcement dated 31 October 2018) will commence in Q4, CY2021.
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 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 (CuEq or 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 (CuEq or 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 |
|
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):
|
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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JORC TABLE 1 - SECTION 3 - ESTIMATION AND REPORTING OF MINERAL RESOURCES
Mineral Resources are not reported so this is not applicable to this announcement. Please refer to ASX Announcement dated 31 October 2018 for Xanadu’s most recent reported Mineral Resource Estimate and applicable Table 1, Section 3.
JORC TABLE 1 - SECTION 4 - ESTIMATION AND REPORTING OF ORE RESERVES
Ore Reserves are not reported so this is not applicable to this announcement.