Xanadu Mines has received new high-grade gold results from trench channel sampling at the Stockwork Zone II discovery at its Oyut Ulaan Copper–Gold Project in southern Mongolia. The trench results with assays up to 145 grams/tonne gold confirm the existence of a continuous zone of shallow high-grade, narrow vein gold mineralization.

Following the discovery of potentially significant outcropping quartz-sulphide vein mineralization at Oyut Ulaan, Xanadu has now completed initial trenching and detailed trench channel sampling of the three parallel epithermal lode structures that occur within 1.5km of each other – Stockwork Zone I, Stockwork Zone II and Bavuu Zone.

Samples received from trench sampling at the Stockwork Zone II vein have delivered exceptional gold results. The systematic sampling within this zone displays remarkable continuity along the entire 33 metre strike of the exposed vein and structure.

Sampling over 33 continuous metres along strike (subparallel) orientations to the vein supports a conclusion of very continuous gold mineralisation within the vein. Xanadu says no conclusion regarding width and grade of the vein can be drawn from this data.

Xanadu’s CEO Dr Andrew Stewart says, “The rapid delineation of high-grade gold, in multiple structures, at surface and now confirmed through trenching, is an outstanding achievement by the company’s exploration team.

“The nature of the high-grade gold vein target type and weathering environment is such that surface exposure is limited, however because of the en-echelon mineralisation style, it is possible that veins repeat frequently with depth. Abundant ancient pitting found in the trenches indicates the surrounding altered volcanic rock may also contain gold mineralisation.

“Although early-stage, these untested possibilities and the high gold grades of surface rock samples and the first trench results, combine to suggest that the targets may form potentially mineable bodies.”

Xanadu will continue its systematic, low cost exploration at Oyut Ulaan with further reconnaissance exploration, field mapping, trenching and infill sampling ongoing.

Oyut Ulaan is within the South Gobi Copper Belt which hosts the world-class Oyu Tolgoi Copper-Gold Project, and is 260km east of Xanadu’s flagship Kharmagtai Copper-Gold Project.