Shallow hits add new dimension to Xanadu’s Zaraa discovery
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Special report: Xanadu Mines’ exciting Zaraa copper and gold discovery at its Kharmagtai project in Mongolia’s South Gobi Desert is evolving rapidly — with recent drilling identifying shallow gold-rich mineralisation that may assist with future development.
Xanadu (ASX:XAM) told investors this week that bedrock drilling through shallow cover had intersected what it believed to be the surface expression of the Zaraa copper-gold porphyry, which was discovered in April this year.
Results from the bedrock drilling included 9 metres at 6.60 grams per tonne (g/t) gold and 0.18% copper from 24 metres including 6m at 9.63 g/t gold and 0.17% copper and 4m at 2.42 g/t gold and 0.07% copper from 27m.
Xanadu Managing Director Andrew Stewart said the results confirmed the company’s belief that Zaraa had the potential to outcrop at the “basement surface” some 18 metres below the present-day land surface.
“Delineating the Zaraa discovery closer to surface will aid in future development,” Stewart said.
“Initial widely space drilling and geophysics indicates that Zaraa represents a very large copper-gold system.
“Ongoing drilling continues to test for both lateral continuity to the shallow oxide mineralisation and depth extensions to the mineralisation.
“The current program will provide a steady flow of news for shareholders for months to come.”
Zaraa lies about 2km to the east of the established copper-gold porphyry deposits at Kharmagtai: Stockwork Hill, White Hill and Copper Hill.
These three deposits all contribute to Kharmagtai’s mineral resource of 203 million tonnes at 0.34% copper and 0.33 g/t gold (0.55% copper) for 1.5 billion pounds of copper and 2.2 million ounces of gold.
The resource was last update in March 2015 and since then, intensive exploration by Xanadu has identified significantly more mineralisation in the district.
The company also has a number of additional porphyry targets lined up for drilling. Zaraa was one of 19 new targets identified within the Kharmagtai Licence area that it is systematically testing.
In conjunction with the results from the shallow drilling, Xanadu also announced today two additional deep diamond holes drilled at Zaraa had extended mineralisation to the south-west, with assays to be reported in the next week.
Shares in Xanadu were steady at 19c on Tuesday.
This special report is brought to you by Xanadu.
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