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Xanadu Mines provides an exploration update for the Red Mountain copper-gold porphyry district in Mongolia

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Xanadu Mines completed a 3,000 metre diamond drilling program at Red Mountain, with targeting focussed on near surface high-grade bornite mineralisation at Stairy and nearby larger-scale porphyry IP targets.

Additional Information:

Company: Xanadu Mines Ltd
Website: http://www.XanaduMines.com
Stock Symbol: TSX: XAM
Date Published: Sep 28, 2021
Transcript: Available

Video Transcript:

I’m Cassandra Bolinski for Investmentpitch Media

Xanadu Mines Ltd has provided an exploration update for the Red Mountain copper-gold porphyry district in Mongolia.

The Red Mountain district, located within the Dornogovi Province of southern Mongolia, approximately 420 kilometres southeast of Ulaanbaatar and 70 kilometres west of the provincial centre of Sainshand, is a joint venture between Xanadu and the Japan Oil, Gas and Metals National Corporation or ‘JOGMEC’.

JOGMEC may earn up to a 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.

The company completed a 3,000 metre diamond drilling program at Red Mountain, with targeting focussed on near surface high-grade bornite mineralisation at Stairy and nearby larger-scale porphyry IP targets.

Approximately 1,600 metres of the 3,000 metre program was designed to obtain geological data relating to mineralised zones identified in recent trenching results at Stairy.

The remaining 1,400 metres was designed to target large-scale porphyry IP targets.

The Stairy prospect consists of a 1.5 kilometre by 1 kilometre zone of sheeted mineralised structures hosted within the Stairy Intrusive in central eastern portion of Red Mountain Mining Lease.

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.

Multiple intercepts of strong copper mineralisation were encountered in the first batch of assays received, comprising 1,812 metres.

Highlights include hole OUDDH115 which returned 4 metres @ 7.34% copper and 29.3 grams per tonne silver starting at 60 metres, including 1 metre @ 28.9% copper and 114 grams per tonne silver starting at 62 metres.

Hole OUDDH119 which returned 8 metres @ 1.31% copper and 7.00 grams per tonne silver from 94 metres, and hole OUDDH112 which returned 4 metres @ 1.98% copper and 9.15 grams per tonne silver from 40 metres.

These results indicate extensions to mineralised zones identified in historic trenches, and more importantly, provide greater structural and pathfinder information for better targeting high-grade bornite zones in future drilling programs.

Assays are pending for the remaining 1,135 metres, which are expected within the next two weeks.

Dr Andrew Stewart, CEO, stated: “We are very excited to see shallow, high-grade bornite mineralisation that is comparable to our Stairy drilling results from earlier this year. 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.”

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.

The company’s flagship Kharmagtai project is located approximately 420 kilometres southeast of Ulaanbaatar, within the South Gobi porphyry copper province, which hosts most of the known porphyry deposits in the South Gobi region of Mongolia.

The shares are trading at $0.03.

For more information about the company, please visit the company’s website, www.XanaduMines.com, contact Andrew Stewart, CEO, at +61 2 8280 7497 or mobile at +61 409 819 922 or by email at andrew.stewart@XanaduMines.com.

I’m Cassandra Kolinski for Investmentpitch Media