Xanadu Mines Ltd (ASX: XAM, TSX: XAM) has restarted exploration work at its 100% owned Red Mountain project located in the South Gobi region of Mongolia.
Highlights
• Exploration targeting shallow high-grade gold-silver-copper, following a detailed review of prior exploration results
• Ground exploration program underway, including surface mapping and trenching activities
• Trenching will test strike extent of shallow mineralisation and set high-priority targets for diamond drilling. Drill testing expected to commence in September 2022 quarter
• Phases 2 and 3 of Xanadu’s strategic partnership with Zijin Mining Group Co., Ltd are in advanced approval stages and on track to complete in the December 2022 quarter.
“Red Mountain has delivered several exciting, shallow, high-grade gold, silver and copper drilling results, which led us to rethink how we tackle this large and highly prospective tenement,” Xanadu’s Executive Chairman and Managing Director, Colin Moorhead, said.
“With a renewed focus on multiple near surface targets, we are now ready to ramp exploration back-up at Red Mountain. This will include extensive trenching to define targets for the forthcoming drill program. By following a systematic programme, we will be able to characterise the nature and mineral potential of Red Mountain, and we look forward to sharing results as this very exciting program progresses.”
2022 Exploration Programme
Red Mountain trenching in 2022 will include 6,500 horizontal metres, designed to test strike extent, and develop targets for follow-up diamond drilling programme. Surface trenching has proven to be a rapid and economic target definition approach prior to diamond drilling, and this program will include extensive trenching over new, gold, silver and copper targets.
Trenching forms part of a disciplined and systematic exploration program.
The program will include:
1. Detailed geological work, 3D geophysical and geochemical modelling
2. Trenching to test strike extent and develop drill targets.
3. Drill programme focussed on shallow gold, silver and copper targets
About Red Mountain
Xanadu’s Red Mountain porphyry copper-gold-silver project is located within the Dornogovi Province of southern Mongolia, approximately 420km southeast of Ulaanbaatar and 70km west from the provincial centre of Sainshand.
The project has a granted 30-year mining licence and comprises an underexplored porphyry district (covering approximately 57 sq. km). Red Mountain mineralisation is associated with late-stage monzonite and quartz diorite porphyry dykes and stocks emplaced on the flanks of the Red Mountain Intrusive Complex.
This consists of multiple co-genetic porphyry gold and copper centres, mineralised tourmaline breccia pipes, gold and copper base metal magnetite skarns and epithermal gold veins.
Previous exploration at Red Mountain has defined several broad zones of strongly mineralised quartz stockwork veining associated with high-grade gold and increasing alteration strength, with the mineralisation style suggesting strong likelihood for depth extensions.
Shallow gold-rich and silver-rich copper mineralisation has been identified in numerous zones, located within a 4.5km long and 300m wide prospective mineralisation zone. This mineralisation is primarily located in Bavuu, Stairy, Diorite, Target 33, Nowie and Stockwork.
Broad spaced drilling has confirmed gold mineralisation is hosted by hematite-quartz veins with coarse visible gold, occurring as multiple stacked arrays. Veins are typically narrow, but very high-grade with gold assays ranging from 1 g/t to >30 g/t gold over widths of 0.5m to 1.5m. Mineralised veins are characterised by banded and crustiform quartz and abundant sulphides.
All these features are commonly found in the lower boiling zone of epithermal system, where bonanza grades are expected. In addition to shallow, high-grade mineralisation, Red Mountain has potential for large-scale porphyry at depth.
Highly anomalous geochemistry corresponds to broad zones of porphyry mineralisation from trenching, zoned porphyry alteration, overlapping with large-scale magnetic and gravity anomalies, representing a compelling string of very large porphyry targets over six km strike.
Initial deeper drilling in 2017 encountered 200-300m wide zones of porphyry style mineralisation at Target 10.
For further information please visit: https://www.xanadumines.com/
