Drilling by Xanadu Mines at the Oyut Ulaan Copper-Gold Project has delivered encouraging results which increase the scale and potential of the project. Drilling extended known near-surface high-grade mineralization at Diorite Hill, discovered shallow high-grade mineralization at Hulan and discovered a new porphyry centre at Temee.

Nine inclined diamond drill holes were completed within the Oyut Ulaan project in southern Mongolia during March and April for a total of 2049.6 metres. The program targeted multiple structural, geochemical and geophysical targets identified in Xanadu’s regional targeting program.

Three holes targeted outcropping quartz-sulphide and coincident geophysical anomalies at Diorite Hill and best results were 237.5 metres from surface @ 0.33% copper and 0.58 grams/tonne gold, including 54.9 metres from surface @ 0.62% copper and 1.5 grams/tonne gold; and 98 metres from 73 metres @ 0.4% copper and 0.65 grams/tonne gold.

Three holes targeted outcropping magnetite skarn mineralization and coincident geophysical anomalies at Golden Skarn and Hulan prospects with shallow high-grade copper-gold skarn mineralization revealed at Hulan. Best result was 40.1 metres from 22.1 metres @ 1.0% copper and 0.25 grams/tonne gold, including 18 metres @ 1.76$ copper and 0.40 grams/tonne gold.

Two holes targeted outcropping tourmaline breccia mineralization associated with a large (2000 metre-long x 200 metre-wide) buried geophysical anomaly at Temee prospect. This drilling intersected the low-grade outer halo of a new porphyry centre.

One diamond hole also targeted outcropping quartz-sulphide and coincident geophysical anomalies at Stockwork Hill prospect but failed to intersect any significant mineralization.

Detailed geophysics continues to identify numerous target areas which host a spectrum of porphyry-related copper-gold stockwork, tourmaline breccia and magnetite skarn mineralization.

Xanadu’s CEO Andrew Stewart says, “This successful program has delivered good results from several different prospects with a spectrum of mineralization styles, any combination of which could possibly transform Oyut Ulaan into a significant mining camp.”

Xanadu will continue its systematic, low-cost exploration at Oyut Ulaan. Current drill holes are mostly shallow and widely spaced, and the existing licence is large and relatively unexplored. The exploration upside for discovering porphyry systems with the large underexplored licence is exciting and the next phase of exploration will focus on identifying the engine room to this large system.