Drilling Recommences at Red Mountain
TORONTO, Feb. 10, 2021 - Xanadu Mines Ltd. (ASX: XAM, TSX: XAM) ("Xanadu" or "the Company") is pleased to report that on-ground exploration activities have recommenced at the highly prospective Red Mountain Joint Venture (JV) with the Japan Oil, Gas and Metals National Corporation (JOGMEC).
- On-ground exploration activities have recommenced at Red Mountain
- Red Mountain JV with JOGMEC is focused on discovery of a Tier-1 copper-gold porphyry deposit
- Red Mountain JV builds upon Xanadu's other active exploration program at Kharmagtai in the South Gobi
- Program consists of 4,300 metres of diamond drilling
Xanadu's Chief Executive Officer, Dr Andrew Stewart, said "We are excited to have exploration drilling recommencing at our Red Mountain JV with JOGMEC. The fact that we can commence operational activities following local COVID-19 related restrictions is testament to the proactive and effective approach being taken by the Government of Mongolia in managing the pandemic.
Red Mountain offers a rare opportunity to access a large, under-explored porphyry district. In the coming months, we will deploy a systematic exploration program, including diamond drilling, that we expect will provide a new perspective on the mineral potential of the Red Mountain district. Diamond drilling will be testing several large-scale drill targets."
About Red Mountain
The Red Mountain 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.
Existing porphyry mineralisation at Red Mountain is hosted within narrow stockwork zones that have been focused around several narrow structurally controlled monzonite porphyry dykes. Emplacement of mineralisation appears to be controlled by intersection of northeast and north-northwest trending structures. The quartz-chalcopyrite-bornite stockwork mineralisation is associated with strong reddening albite-sericite-biotite-magnetite (potassic) alteration assemblage in the host lithology. The thin nature of the mineralising dykes, their irregular intrusion geometry, and the patchy distribution of stockwork mineralisation are all features typically found in the shallower parts of porphyry systems, where narrow dykes and patchy mineralisation branch out above a mineralised stock. Similar orebody geometries are found in the shallower parts of the Northparkes porphyry copper-gold (Cu-Au) deposits in NSW, where porphyry mineralisation has also been tightly focused along a controlling structure adjacent to a felsic pluton. Like Northparkes, there is the potential for further mineralisation along the main structures at Diorite Hill and Stockwork Hill, and the likelihood that mineralisation extends (and could amalgamate) at depth.
FIGURE 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d8cb144f-594e-4cf2-bca5-7eebcd6fedbd
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 four years. The exploration objective of the earn-in deal is to discover Mongolia's next world-class copper-porphyry deposit.
FIGURE 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c82284fa-aab7-4d92-b038-231b4c796708
About Xanadu Mines
Xanadu is an ASX and TSX listed exploration company that seeks to discover and define globally significant porphyry copper-gold assets in Mongolia. We give investors exposure to large scale copper-gold discoveries, and we create liquidity events for our shareholders at peak value points in the mining life cycle. Xanadu delivers this through a low cost of discovery, inventory growth, and by progressing projects from Discovery towards Pre-Feasibility.
For further information, please visit www.xanadumines.com or contact:
Xanadu Mines Ltd.
+61 409 819 922
This Announcement was authorised for release by Xanadu's Board of Directors.
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 Web Site at www.xanadumines.com.
1.1 JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA
|Criteria||JORC Code explanation||Commentary|
|Sampling techniques|| || |
|Drilling techniques|| || |
|Drill sample recovery|| || |
|Logging|| || |
|Sub-sampling techniques and sample preparation|| || |
|Quality of assay data and laboratory tests|| || |
|Verification of sampling and assaying|| || |
|Location of data points|| || |
|Data spacing and distribution|| || |
|Orientation of data in relation to geological structure|| || |
|Sample security|| || |
|Audits or reviews|| || |
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|
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|Relationship between mineralisation |
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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.