Exploration Update Kharmagtai
TORONTO, June 17, 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
- Disciplined program continues to target and define higher grade zones at Kharmagtai.
- Partial Assays returned for drill holes KHDDH567 and KHDDH568, scissor holes following up KHDDH565 (see ASX/TSX Announcement dated 18 May 2021)
- KHDDH567 returns 86.7m @ 0.61% eCu from 660.3m
including 54m @ 0.75% eCu from 667m
including 6m @ 1.06% eCu from 669m
- KHDDH568 returns 46.4m @ 0.60% eCu from 693.7m
- This drilling confirms location of the broader zone of high-grade mineralisation but is interpreted to have missed the very high grade, gold-rich bornite zone due to displacement along the Fifty-Fifty fault. Current diamond drill hole KHDDH571 is a follow up to target this zone on the hanging wall side of that fault.
- Current 3 rig program includes two other diamond drill rigs focusing on resource expansion drilling at White Hill (KHDDH569) and Zaraa (KHDDH570). Visual results indicate:
- White Hill drill hole expands copper sulphide mineralisation by approximately 300m to the south of the current resource, indicates possible presence of higher-grade blocks.
- Zaraa drill hole expands interpreted mineralisation by approximately 100m to the east.
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “Xanadu is running a disciplined exploration program to define higher grade blocks within a large zone of >0.6% eCu mineralisation. Today’s results show effective progress, which we expect to be a steady build over the next 6 months. Over this time, we will share both drill results and project implications on a regular basis.
The partial assay results from our scissor holes KHDDH567 and KHDDH568 demonstrate structural complexity in the high-grade Bornite Zone at Stockwork Hill, with the zone pinching and swelling along its interpreted strike length. Late structures have moved parts of the high-grade bornite zone, which is not uncommon in older systems such as Kharmagtai.
The estimated width of the defined high-grade mineralisation at the Stockwork Hill Deposit ranges between 20 and 100 metres, however this is limited by a lack of drill holes along the northern and southern flanks, which we will target through our drilling program.
For our resource growth objective, the visual mineralisation logged in current drill holes at White Hill and Zaraa are encouraging and highlight the potential for substantial expansion of the global resource.
We look forward to providing regular updates on this structured program as we build the grade and scale of Kharmagtai.”
Partial Results for KHDDH567 and KHDDH568
KHDDH567 was drilled targeting the extensions of the high-grade bornite zone approximately 80m west. Assays for the 780m have been returned with results for the remaining 256m due within two weeks.
Hole ID | From | Interval | Cu | Au | eCu | ||
KHDDH567 | 660.3m | 86.7m | 0.36 | % | 0.49g/t | 0.61 | % |
including | 667m | 54m | 0.42 | % | 0.66g/t | 0.75 | % |
including | 669m | 6m | 0.56 | % | 0.98g/t | 1.06 | % |
KHDDH568 was drilled targeting the extensions of the high-grade bornite zone 80m. Complete assays have been returned KHDDH568.
Hole ID | From | Interval | Cu | Au | eCu | ||
KHDDH568 | 693.7m | 46.4m | 0.32 | % | 0.55g/t | 0.60 | % |
These holes show that the bornite zone appears to form in two compartments split by a fault (50:50 fault) Both drill holes intersected the bornite zone adjacent to the 50:50 fault and show that the bornite zone thins next to the fault.
Drilling is currently underway with KHDDH571 targeting the western compartment of the bornite zone where previous drill holes suggest the bornite zone thickens again (Figure 1). In plan view, the bornite zone appears to be offset by the 50:50 fault and the western compartment steps to the north (Figure 2).
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/15e82b79-fd58-4f17-8a88-e65165dd4bc5
Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ee7ae6fa-9762-4ba5-861f-0ad69adf2e28
Current Drilling
The Exploration Program is currently underway with three active diamond drill holes - KHDDH569, KHDDH570 and KHDDH571 (Figure 3).
Deeper extension of mineralisation under White Hill is being tested with drill hole KHDDH569. KHDDH569 is currently at 860m and based on visual estimates is in high-grade mineralisation (Figure 4). This is significant and should add a large volume of mineralisation to the White Hill deposit.
No significant high-grade mineralisation has been drilled at White Hill previously, and this current drilling suggests there the potential for blocks of higher-grade within the larger White Hill deposit (similar to those identified at Stockwork Hill).
At Zaraa, drill hole KHDDH570 is expanding the mineralisation there, pushing mineralisation over 100m to the east. KHDDH570 is currently at 850m and based on visual estimates has encountered over 500m of moderate grade mineralisation (Figure 5).
Current drill hole KHDDH571 aims to test the western extension of the gold-rich, bornite zone under Stockwork Hill (Figure 1). KHDDH571 is currently at 660m and approaching the zone of interpreted mineralisation.
Figure 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c092c190-a568-4d1b-bf92-5ce59c0ad6bf
Figure 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/83b951b4-1cba-4307-a03e-d56602674cd4
Figure 5 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/38ebb766-515d-4887-b06b-a5379f94fb05
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) |
KHDDH567 | Stockwork Hill | 592605 | 4877304 | 1296 | 0 | -70 | 1,036.2 |
KHDDH568 | Stockwork Hill | 592556 | 4877308 | 1295 | 0 | -70 | 1,104.6 |
KHDDH569 | White Hill | 591766 | 4876609 | 1314 | 0 | -60 | 1,350 |
KHDDH570 | Zaraa | 594727 | 4877204 | 1271 | 197 | -65 | 1,200 |
KHDDH571 | Stockwork Hill | 592455 | 4877275 | 1295 | 0 | -65 | 1,000 |
Table 2: Significant drill results
Hole ID | Prospect | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | CuEq (%) | AuEq (g/t) |
KHDDH567 | Stockwork Hill | 263 | 322 | 59 | 0.07 | 0.14 | 0.17 | 0.34 |
and | 386 | 390 | 4 | 0.11 | 0.18 | 0.24 | 0.47 | |
and | 436 | 440 | 4 | 0.07 | 0.18 | 0.21 | 0.42 | |
and | 660.3 | 747 | 86.7 | 0.49 | 0.36 | 0.61 | 1.19 | |
including | 660.3 | 743 | 82.7 | 0.51 | 0.37 | 0.63 | 1.23 | |
including | 667 | 721 | 54 | 0.66 | 0.42 | 0.75 | 1.47 | |
including | 669 | 675 | 6 | 0.98 | 0.56 | 1.06 | 2.07 | |
and | 762 | 776 | 14 | 0.08 | 0.10 | 0.14 | 0.27 | |
assays pending | ||||||||
KHDDH568 | Stockwork Hill | 0 | 34 | 34 | 0.05 | 0.13 | 0.15 | 0.30 |
and | 286 | 441 | 155 | 0.06 | 0.15 | 0.18 | 0.35 | |
and | 693.7 | 740.1 | 46.4 | 0.55 | 0.32 | 0.60 | 1.17 | |
including | 696.2 | 740.1 | 43.9 | 0.56 | 0.33 | 0.61 | 1.20 | |
and | 765.6 | 786 | 20.4 | 0.08 | 0.14 | 0.18 | 0.36 | |
and | 798 | 834 | 36 | 0.10 | 0.11 | 0.16 | 0.32 | |
and | 927 | 933 | 6 | 0.14 | 0.07 | 0.14 | 0.26 | |
and | 955 | 963 | 8 | 0.18 | 0.01 | 0.10 | 0.20 | |
and | 985 | 1,007 | 22 | 0.07 | 0.12 | 0.15 | 0.30 | |
including | 1,001 | 1,005 | 4 | 0.06 | 0.37 | 0.40 | 0.79 | |
and | 1,031 | 1,062 | 31 | 0.06 | 0.16 | 0.19 | 0.38 | |
including | 1,055.7 | 1,060 | 4.3 | 0.16 | 0.53 | 0.61 | 1.20 |
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.
The information in this Announcement relates to the exploration results previously reported in ASX Announcements which are available on the Xanadu website at:
http://www.xanadumines.com/irm/content/announcements.aspx. The Company is not aware of any new, material information or data that is not included in those market announcements.
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 (see ASX Announcement dated 31 October 2018).
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 |
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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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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.