New High-Grade Bornite Intersections at Red Mountain
TORONTO, Sept. 28, 2021 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu or the Company) is pleased to provide an exploration update for the Red Mountain copper-gold porphyry district, a joint venture with Japan Oil, Gas and Metals National Corporation (JOGMEC). Red Mountain is located within the Dornogovi Province of southern Mongolia, approximately 420km southeast of Ulaanbaatar and 70km west of the provincial centre of Sainshand.
Highlights
- 3,000m diamond drilling program completed at Red Mountain, with targeting focussed on near surface high-grade bornite mineralisation at Stairy and nearby larger-scale porphyry IP targets
- Assays returned for 1,865m, with silver-rich, high-grade copper results in several drill holes, including:
° OUDDH115 4m @ 7.34% Cu, 29.3g/t Ag from 60m
• Including 1m @ 28.9% Cu, 114g/t Ag from 62m
° OUDDH119 8m @ 1.31% Cu, 7.00g/t Ag from 94m
° OUDDH112 4m @ 1.98% Cu, 9.15g/t Ag from 40m
- Mineralised zones primarily comprised of massive bornite and bornite, along with trace chalcocite
- Structural modelling underway to understand orientation for targeting additional high-grade bornite
- Assays pending for remaining 1,135m, expected within the next two weeks
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “We are very excited to see shallow, high-grade bornite mineralisation that is comparable to our Stairy drilling results from earlier this year1. This confirms the presence of sub-vertical mineralised structures up to twenty-four meters wide that potentially extend beyond a kilometre. Importantly, our latest geological interpretation suggests these may be linked to a large-scale porphyry system at depth. Red Mountain district, particularly Stairy, continues to improve, laying a strong foundation for future exploration.”
Stairy Drilling Results
Approximately 1,600 metres of the 3,000 metre Red Mountain drilling program was designed to obtain geological (structural) data relating to mineralised zones identified in recent trenching results2 at Stairy. The remaining 1,400 metres was designed to target large-scale porphyry IP targets.
Multiple intercepts of strong copper mineralisation were encountered in the first batch of assays received, comprising 1,812 metres (Appendix 1: Tables 1 and 2), including drill holes OUDDH112, OUDDH115 and OUDDH119 (Figures 1, 2, 3 and 4). These results indicate extensions to mineralised zones identified in historic trenches. More importantly, the results provide greater structural and pathfinder information for better targeting high-grade bornite zones in future drilling programs.
Hole ID | From | Interval | Cu | Ag | |
OUDDH112 | 0 | 8m | 0.15 | % | 0.96g/t |
and | 30m | 4m | 0.16 | % | 0.80g/t |
and | 40m | 4m | 1.98 | % | 9.15g/t |
and | 48m | 4m | 0.19 | % | 1.20g/t |
Hole ID | From | Interval | Cu | Ag | |
OUDDH115 | 60m | 4m | 7.34 | % | 29.29g/t |
including | 61.5m | 1m | 28.90 | % | 114.0g/t |
Hole ID | From | Interval | Cu | Ag | |
OUDDH119 | 42m | 6m | 0.27 | % | 0.55g/t |
including | 42m | 4m | 0.36 | % | 0.70g/t |
and | 94m | 8m | 1.31 | % | 7.00g/t |
including | 94m | 6m | 1.72 | % | 9.17g/t |
True mineralised widths will generally be narrower than those reported. See disclosure in JORC Tables attached in Appendix 3.
The next stage of Red Mountain exploration will be developed by Xanadu and its partner JOGMEC using results reported in this announcement and assays pending. This follow-up targeting program will be announced in due course.
FIGURE 1: Cross Section OUDDH112 is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/8007eccf-f001-4f88-be94-9c1a6ba25398
FIGURE 2: Cross Section OUDDH115 and OUDDH119 is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/eff429bc-a21b-4042-bd27-a60c4311f3bc
FIGURE 3: Trenching Results at Stairy, showing surface high-grade mineralisation3,4 is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/4876097c-f386-4d70-979e-973521c38f55
FIGURE 4: HQ Core images from Stairy Drilling. Core is 6.4cm high is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/a49c8d51-0030-42a5-9f6b-ba09858fab26
About Stairy
The Stairy prospect consists of a 1.5km by 1km zone of sheeted mineralised structures hosted within the Stairy Intrusive in central eastern portion of Red Mountain Mining Lease (Figure 5). Structures are interpreted to be sub-vertical, up to twenty-four meters wide and can extend beyond a kilometre.
Copper mineralisation at Stairy consists of bornite and chalcopyrite sulphide with quartz carbonate fill. Current geological interpretations suggest these sheeted structures may be linked to a large-scale porphyry system at depth.
FIGURE 5: Red Mountain Mining Licence, showing ground Landsat data and priority target locations is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/7518ff65-5da0-4a5c-ad76-8a1d2af0a895
About Red Mountain
The Red Mountain district is located within the Dornogovi Province of southern Mongolia, approximately 420 kilometres southeast of Ulaanbaatar (Figure 6) and is a joint venture between Xanadu and JOGMEC, in which JOGMEC may earn up to 51% beneficial interest in the project by sole funding up to $US7.2 million in exploration expenditure over 4 years, commencing April 2020.
Red Mountain covers approximately 57 square kilometres in a frontier terrane with significant mineral endowment, and it 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 includes multiple porphyry copper-gold centres, mineralised tourmaline breccia pipes copper-gold/base metal skarns and high-grade epithermal gold veins.
FIGURE 6: Location of the Red Mountain district in the South Gobi porphyry copper belt 5 is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/8583f2c4-eff6-4c5e-9c5d-42e1d440fa45
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 a globally significant 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]
This Announcement was authorised for release by Xanadu’s Board of Directors.
Appendix 1: Drilling Results
Table 1: Drill hole locations
Hole ID | Prospect | East | North | RL | Azimuth (°) | Inc (°) | Depth (m) |
OUDDH106 | Stairy | 378390 | 4939816 | 1055 | 0 | -58 | 145.0 |
OUDDH107 | Stairy | 378426 | 4939852 | 1055 | 0 | -58 | 95.0 |
OUDDH108 | Stairy | 378342 | 4939821 | 1055 | 0 | -58 | 75.0 |
OUDDH109 | Stairy | 378388 | 4939917 | 1056 | 180 | -60 | 125.0 |
OUDDH110 | Stairy | 378392 | 4939522 | 1051 | 0 | -58 | 75.5 |
OUDDH111 | Stairy | 378598 | 4939602 | 1049 | 0 | -58 | 75.5 |
OUDDH112 | Stairy | 378699 | 4939648 | 1050 | 0 | -58 | 75.5 |
OUDDH113 | Stairy | 378393 | 4939413 | 1049 | 0 | -58 | 75.0 |
OUDDH114 | Stairy | 378644 | 4939610 | 1049 | 0 | -58 | 75.5 |
OUDDH115 | Stairy | 378237 | 4939758 | 1056 | 0 | -60 | 80.5 |
OUDDH116 | Stairy | 378995 | 4939675 | 1044 | 0 | -60 | 75.0 |
OUDDH117 | Stairy | 378396 | 4939764 | 1054 | 0 | -58 | 85.0 |
OUDDH118 | Stairy | 378451 | 4939784 | 1054 | 0 | -58 | 75.0 |
OUDDH119 | Stairy | 378239 | 4939837 | 1056 | 180 | -60 | 120.0 |
OUDDH120 | Stairy | 378285 | 4939774 | 1055 | 0 | -58 | 85.0 |
OUDDH121 | Stairy | 378473 | 4939874 | 1055 | 0 | -58 | 75.0 |
OUDDH122 | Stairy | 378501 | 4939846 | 1054 | 0 | -58 | 75.0 |
OUDDH123 | Stairy | 378246 | 4939803 | 1056 | 180 | -55 | 55.0 |
OUDDH124 | Stairy | 378228 | 4939804 | 1056 | 180 | -55 | 55.0 |
OUDDH125 | Bavuu | 376700 | 4939549 | 1081 | 0 | -75 | 400.0 |
OUDDH126 | Diorite | 378398 | 4940329 | 1064 | 180 | -75 | 400.0 |
OUDDH127 | Diorite | 377800 | 4940430 | 1071 | 0 | -65 | 550.0 |
Table 2: Significant drill results
Hole ID | Prospect | From (m) | To (m) | Interval (m) | Cu (%) | Ag (g/t) |
OUDDH106 | Stairy | 8 | 12 | 4 | 0.19 | 0.90 |
and | 42 | 45.4 | 3.4 | 0.58 | 3.18 | |
and | 56 | 64 | 8 | 0.29 | 1.39 | |
including | 56 | 60 | 4 | 0.40 | 2.20 | |
OUDDH107 | Stairy | 68 | 74 | 6 | 0.20 | 0.90 |
OUDDH108 | Stairy | 0 | 4 | 4 | 0.12 | 0.38 |
and | 10 | 14 | 4 | 0.34 | 1.85 | |
and | 26 | 32 | 6 | 0.51 | 2.27 | |
and | 40 | 44 | 4 | 0.45 | 2.50 | |
and | 68 | 72 | 4 | 0.15 | 0.53 | |
OUDDH109 | Stairy | 102 | 108 | 6 | 0.28 | 1.27 |
and | 118 | 124 | 6 | 0.49 | 2.37 | |
OUDDH110 | Stairy | 18 | 24 | 6 | 0.15 | 0.67 |
and | 66 | 72 | 6 | 0.60 | 3.10 | |
including | 68 | 72 | 4 | 0.75 | 3.85 | |
OUDDH112 | 0 | 8 | 8 | 0.15 | 0.96 | |
and | 30 | 34 | 4 | 0.16 | 0.80 | |
and | 40 | 44 | 4 | 1.98 | 9.15 | |
and | 48 | 52 | 4 | 0.20 | 1.20 | |
OUDDH113 | Stairy | 16 | 26 | 10 | 0.24 | 1.26 |
including | 32 | 54 | 22 | 0.21 | 1.03 | |
OUDDH115 | Stairy | 60 | 64 | 4 | 7.34 | 29.29 |
including | 61.5 | 62.5 | 1 | 28.90 | 114.00 | |
OUDDH117 | Stairy | 70 | 74 | 4 | 0.14 | 0.55 |
OUDDH119 | Stairy | 42 | 48 | 6 | 0.27 | 0.55 |
including | 42 | 46 | 4 | 0.36 | 0.70 | |
and | 94 | 102 | 8 | 1.31 | 7.00 | |
including | 94 | 100 | 6 | 1.72 | 9.17 | |
OUDDH120 | Stairy | 72 | 76 | 4 | 0.30 | 1.13 |
OUDDH121 | Stairy | 42 | 48 | 6 | 0.39 | 0.40 |
OUDDH122 | Stairy | Assays pending | ||||
OUDDH123 | Stairy | Assays pending | ||||
OUDDH124 | Stairy | Assays pending | ||||
OUDDH125 | Bavuu | 54 | 72 | 18 | 0.05 | 0.59 |
OUDDH126 | Diorite | Assays pending | ||||
OUDDH127 | Diorite | 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.
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 5 August 2021.6
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.
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1 ASX/TSX Announcement 23 March 2021 – Shallow Bornite-Rich Copper Mineralisation at Red Mountain
2 ASX/TSX Announcement 5 August 2021 – Significant Trenching Results & Drilling Commences at Red Mountain
3 ASX/TSX Announcement 16 June 2021 - Multiple strong MLEM conductors detected at Stairy
4 ASX/TSX Announcement 5 August 2021 – Significant Trenching Results & Drilling Commences at Red Mountain
5 ASX/TSX Announcement 31 October 2018 – Major Increase in Kharmagtai Open-Cut Resources to 1.9Mt Cu & 4.3Moz Au
6 ASX Announcement 5 August 2021 – Significant Trenching Results & Drilling Commences at Red Mountain