TORONTO, July 24, 2019 (GLOBE NEWSWIRE) — Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or “the Company”) is pleased to report that a drill rig has been mobilised to commence drilling at the Kharmagtai copper-gold project in Mongolia (Figure 1). The objective of this program is to confirm the presence of the oxide gold cap above the Stockwork Hill deposit and characterise this mineralisation for gold deportment to give direction for further work. An initial development of an oxide gold operation would be focused exclusively on mining and processing near-surface resources. The low cost drill program is the first step towards this goal. Subject to further technical, environmental and social studies the larger-scale copper-gold project is expected to be developed in the future.
- Potential for low-cost, high-value oxide gold project at Kharmagtai
- Targets include gold cap above Stockwork Hill, where several holes have highlighted high grade oxide gold previously
- Previous drilling in these areas is stepped off targeting deeper copper-gold mineralisation, underestimating shallow oxide gold potential
- Oxide gold may provide early cashflow for the project and/or alternative financing options for the development of the larger-scale project
- Further development of oxide gold metallurgical performance will be targeted with additional test work.
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said:
“We are excited about the opportunity for a near term, low-cost, high-value oxide gold project at Kharmagtai to fund further exploration and development of the large-scale copper gold project. Kharmagtai sits on a granted mining lease with a registered water resource and an established power supply nearby. We have the ability to move quickly on an oxide gold project.
This first round of drilling is designed to quickly and cheaply test the concept and confirm the tenor of the oxide cap we know is above the established sulphide copper-gold resources”.
OXIDE GOLD DRILL PROGRAM
The objective of this drill program is to quickly and cheaply test one of the main oxide gold targets at Kharmagtai to confirm the expected gold grades and characterise the gold deportment. A total of eight vertical PQ drill holes have been designed to test several sections across the oxide cap and several holes to test beneath extremely high-grade gold at surface along strike (Figure 2, 3, 4 and 5). PQ drilling is being used to ensure sufficient material for metallurgical and geotechnical data to be gathered. Screen fire assays will be used to help determine the gold grain sizes and ensure accurate QAQC going forward. Material from this work will be submitted for gravity and leach metallurgical work to obtain initial recovery data. This work will form a decision point for further drilling and resource estimation.
SOURCE: XANADU MINES