Drilling by Xanadu Mines at Oyut Ulaan Copper-Gold Project in the South Gobi desert has extended high-grade mineralization. Seven diamond drill holes at around 1500 metres have targeted zones of sub-cropping stockwork copper-gold mineralization at Diorite Hill prospect.
The results confirm Diorite Hill as a broad zone of strong quartz stockwork veining and associated high-grade copper-gold mineralization, 0.3 to 1.5% copper and 0.5 to 5 grams/tonne gold, that is 600 metres long, 40 to 80 metres wide, and at least 200 metres deep, and remains open.
The principal ore minerals are bornite and chalcopyrite and samples of the high-grade bornite is associated with percentage copper to grams/tonne gold ratios exceeding 1:2. This is typical of other gold-rich porphyry deposits including Ridgeway and Northparkes in New South Wales.
Most of the Diorite Hill porphyry system remains concealed under shallow cover with a mineralized outcrop 2km along trend to the northeast. The irregular mineralizing dykes and distribution of stockwork is typical of shallower parts of porphyry systems suggesting potential for individual mineralized dykes to amalgamate at depth.
Xanadu’s managing director George Lloyd says, “The latest drilling results open up Diorite Hill’s potential and we see indications of similar gold-rich porphyry mineralization at several other prospects. This adds to our confidence as we plan the next phase of drilling at Oyut Ulaan.”
Mapping and trenching data was collected during the drilling to test for surface expressions of underlying mineralization. Results of interpretation of the data are expected soon.
Xanadu Mines is a Mongolian exploration company focused on advancing a portfolio of highly prospective copper-gold projects. The company has also partnered with the Noble Group of Hong Kong in a coking coal joint venture and holds two thermal coal assets.