Xanadu Mines drills 0.4% CuEq over 544 metres at Kharmagtai, Mongolia

Xanadu Mines Ltd. [XAM-TSX, ASX] and joint venture partner Zijin Mining Group Co. Ltd. [ZIJMF-OTC] have provided an update on recent infill drilling at the Kharmagtai project in Mongolia. Infill drilling has defined a new zone (core) of high-grade copper and gold mineralization at the Whit deposit and results continue to validate the total mineral resource model.

Highlights: Approximately 27,000 metres of phase one diamond drilling have been completed (out of 30,000 m total) at both the Stockwor and Whit deposits, at Kharmagtai.

Exceptional highlights from an additional 14 drill holes demonstrate a new high-grade zone (core) is emerging at Whit and extending below the currently optimized pit.

Best drilling results include drill holes that returned KHDDH638 that returned 544 metres at 0.4% copper equivalent (eCu) (0.34% Cu and 0.12 g/t Au) from 273.4 metres, including 63 metres at 1.03% eCu (0.92% Cu and 0.23 g/t Au) from 634 metres, including 28 metres at 1.45% eCu (1.45% Cu and 0.32 g/t Au) from 645 metres.

KHDDH634 returned 654 metres at 0.34% eCu (0.28% Cu and 0.11 g/t Au) from 172 metres, including 32 metres at 0.61% eCu (0.48% Cu and 0.25g/t Au) from 512 metres; and 58 metres at 0.71% eCu (0.59% Cu and 0.23 g/t Au) from 617 metres, including eight metres at 1.45% eCu (1.17% Cu and 0.50g/t Au) from 651 metres.

Newly identified high-grade (over 1% eCu) core at Whit demonstrates potential to enhance the 2021 mineral resource estimate (MRE) (3 million tonnes of copper and 8 million ounces gold (1.98 million copper equivalent (CuEq) indicated, 2.33 million t eCu inferred)).

Kharmagtai joint venture is financing US$35-million prefeasibility study completion and discovery exploration, aiming toward decision to mine in fourth quarter of fiscal year 2024.

Executive chairman and managing director, Colin Moorhead, said: “I’m particularly proud of our hardworking geology team making steady progress at Kharmagtai, better defining the Whit deposit. Both drill holes KHDDH638 and KHDDH634 have effectively intercepted the top of a previously undefined high-grade core at Whit.

“Both Stockwor and Copper Hill deposits feature these higher-grade zones (core), and previous drilling at Whit has suggested such a zone may be present there also.

“However, this is the first time we have observed significant intervals spanning greater than 50 m of mineralization at grades greater than 1 per cent eCu at Whit.

“We see this as a very positive result, with strong potential to impact PFS pit optimization and very encouraging for higher grade mineralization to be uncovered at depth.”

Infill drilling intercepts high-grade core at Whit: Approximately 27,000 metres of infill drilling has been completed, as part of the 30,000 m phase one infill drilling program. Assay results have been returned for 14 additional drill holes, with results generally better than, or in line with, 2021 MRE grades.

Several drill holes have encountered materially better grade relative to the Whit MRE resource grade. Drill hole KHDDH638, located on the southern margin of the Whit deposit, targeted a mineralized and resource controlling fault, intersecting a significantly higher-grade zone of copper and gold mineralization that is located below the current optimized pit design.

Drill hole KHDDH634 targeted definition and expansion of mineralization at Whit within the current mineral resource estimate. It intersected the top of a new high-grade zone and returned the following interval along the edge and outside of the current open-pit optimization.

Four diamond drill rigs are currently focused on Kharmagtai infill drilling, with the objective to target areas with potential for future mineral resource to ore reserve conversion. Totalling about 30,000 metres, the infill drilling program is planned to specifically increase the resource confidence category from inferred to indicated. As such, the planned drill holes aim to remove any mineralization knowledge gaps around the edges of existing deposits.

Kharmagtai currently has an inferred and indicated resource of 1.1 billion tonnes containing three million tonnes Cu and eight million oz Au. As part of the Kharmagtai PFS, the resource will be upgraded to indicated classification, enabling a maiden, JORC-compliant ore reserve to be reported. To achieve this, the infill drilling program is designed to upgrade and extend strike length of the shallow open-pit resource areas and selected deeper high-grade zones, including investigation of near-mine, higher-grade extensions.

Xanadu is the operator of a 50-50 JV with Zijin Mining Group in Khuiten Metals Pte. Ltd., which controls 76.5% of the Kharmagtai project.

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