Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the
Company) and its joint venture partner
Zijin
Mining Group Co., Ltd. (Zijin) are pleased to announce
results from the first 3,400m shallow exploration discovery
drilling at Kharmagtai (of 10,000m planned), targeting additional
copper-gold deposits outside the current Mineral Resource Estimate
(
MRE).
Highlights
- New shallow
discovery drilling intersects both high-density stockwork, breccia
mineralisation and gold only mineralisation across three largely
unexplored porphyry clusters.
- Best diamond
drilling intercepts at Cluster Two and Cluster Three:
- KHDDH590 -
8m at 1.59g/t Au from 289m;
- Including
4m @ 3.04g/t Au from 291m.
- KHDDH622 -
15m @ 1.26% Cu from 127m;
- Including
5.95m @ 2.97% Cu from 132.5m.
- Extensive infill
and exploration program underway with regular news flow to continue
throughout 2023, as exploration drilling for additional porphyry
copper deposits and MRE expansion continues.
Xanadu’s Executive Vice President
Exploration, Dr Andrew Stewart, said “Initial results from
shallow exploration discovery drilling has demonstrated exciting
growth potential. We set out to test several shallow (within 200m
from surface) high-potential copper-gold and gold only targets
outside the currently defined mineral resource volume, looking for
both high-grade, gold-rich stockwork mineralisation and tourmaline
breccia mineralisation.
Delivering drill intercepts over 3% copper and
over 3g/t gold from the first three targets tested is very
encouraging. This validates our strong belief in undiscovered
porphyry deposits at Kharmagtai. We look forward to updating the
market and results will be released in logical groups of drill
holes.”
About the Shallow Exploration
Drilling
Shallow exploration drilling at Kharmagtai is
targeting additional porphyry copper-gold deposits outside the
currently defined MRE volume. This programme also serves to inform
future infrastructure location decisions associated with the
potential development of the Kharmagtai Project into a large-scale
mining operation. Approximately 3,400m (of 10,000m planned) has
been completed to date in fifteen holes (Figure 1, Tables 1
and 2).
Table 1: Geological
characteristics of the five coper-gold and gold clusters.
Cluster |
Style |
Size |
Depth |
Host |
Max Copper from drilling |
Max Gold from drilling |
Comments |
Cluster One |
Porphyry Stockwork |
1.5km by 1km |
Outcrop |
Diorite intrusive in siltstone |
2m @ 0.35% Cu |
2m @ 0.74g/t Au |
Outcropping high-density sheeted porphyry veining with malachite
staining. |
Cluster Two |
Porphyry Stockwork and Epithermal Gold |
2km by 1km |
Outcrop |
Diorite intrusive in sandstone |
2m @ 0.2% Cu |
2m @ 4.17g/t Au |
Outcropping high-density sheeted porphyry veining with malachite
staining. |
Cluster Three |
Porphyry Stockwork and Tourmaline Breccia |
1.5km by 1.5km |
Outcrop |
Diorite intrusive in siltstone |
1.95m @ 5.38% Cu and 1.15m @ 5.59% Cu |
2m @ 1.06g/t Au |
Outcropping porphyry veining and tourmaline breccia with malachite
staining. |
Cluster Four |
Porphyry Stockwork and Tourmaline Breccia |
3km by 2km |
10m of cover |
Diorite intrusive in siltstone |
2m @ 0.69% Cu |
2m @ 1.06g/t Au |
Previous broad intercepts of porphyry mineralisation |
Cluster Five |
Porphyry Stockwork and Tourmaline Breccia |
3km by 2km |
Between 5 and 20m of cover |
Diorite Intrusive |
Drilling imminent |
Drilling imminent |
Previously undrilled |
Figure 1: Kharmagtai copper-gold
district showing currently defined mineral deposits and planned and
completed shallow exploration drill holes. Blue outlines are 2021
scoping study open pit designs and white dashed outlines define
porphyry cluster target areas.
Shallow Drilling Results to
Date
At Cluster One (Figure
1), drilling targeted surface copper anomalism and
outcropping porphyry veining. Drill Hole KHDDH589
intercepted a broad zone of low-grade porphyry mineralisation from
surface, suggesting the hole has passed over and to the north of a
potential shallow porphyry (Figure 2). Drill hole
KHDDH589 returned:
Hole ID |
Interval (m) |
Cu (%) |
Au (g/t) |
CuEq (%) |
From (m) |
KHDDH589 |
28.3 |
0.16 |
0.16 |
0.25 |
2.2 |
and |
26 |
0.06 |
0.18 |
0.15 |
42 |
Drilling is planned to test behind this
intercept for higher-grade material at Cluster One.
Drilling at Cluster Two
(Figure 1) targeted previous shallow porphyry
stockwork mineralisation and was prioritised given the area is
adjacent to existing planned open pits and planned infrastructure.
Drill hole KHDDH590 targeted a previous porphyry
intercept (Figure 3) and encountered a broad zone
of low-grade porphyry mineralisation with an additional high-grade
gold intercept near end of hole (EOH).
Hole ID |
Interval (m) |
Cu (%) |
Au (g/t) |
CuEq (%) |
From (m) |
KHDDH590 |
113.2 |
0.10 |
0.18 |
0.19 |
163.8 |
and |
8 |
- |
1.59 |
- |
289 |
including |
4 |
- |
3.04 |
- |
291 |
The copper gold ratio of these intercepts and
nature of mineralisation is like the nearby Southern Stockwork Zone
at Stockwork Hill, with additional drilling to be planned as this
appears to be on the edge of a potentially shallow, mineralised
porphyry.
A total 4 diamond drill holes were completed at
Cluster 4 with no significant results returned.
Figure 2: Cross Section Drill
Hole KHDDH589.
Figure 3: Cross Section Drill
Hole KHDDH590.
At Cluster Three (Figure 1),
drilling is targeting previous broad porphyry intercepts in
trenching and drilling, along with key structural features
characterising existing deposits at Kharmagtai. Three drill holes
at Cluster 3 have returned significant results to date, which are
encouraging for a potential shallow high-grade core to be
identified.
Drill hole KHDDH622 (Figure 4)
targeted a structure in the west of the cluster and returned
high-grade copper intercepts. This intercept is significant in its
width and grade, and additional drilling is planned to test along
strike, up and down dip.
Hole ID |
Interval (m) |
Cu (%) |
Au (g/t) |
CuEq (%) |
From (m) |
KHDDH622 |
15 |
1.26 |
0.09 |
1.31 |
127 |
including |
5.95 |
2.97 |
0.21 |
3.08 |
132 |
Figure 4: Cross Section Drill
Hole KHDDH622.
Drill Hole KHDDH625 targeted
surface copper in the south of Cluster 3 (Figure
5). This hole encountered several broad zones of low-grade
porphyry mineralisation and a shallower moderate grade
intercept.
Hole ID |
Interval (m) |
Cu (%) |
Au (g/t) |
CuEq (%) |
From (m) |
KHDDH625 |
20.3 |
0.29 |
0.10 |
0.30 |
28 |
and |
59.8 |
0.16 |
0.02 |
0.16 |
80 |
and |
70 |
0.15 |
0.03 |
0.17 |
150 |
Figure 5: Cross Section Drill
Hole KHDDH625.
Drill Hole KHDDH630 also
targets surface copper anomalism and has returned a broad interval
of low-grade copper porphyry mineralisation (Figure
6). This drilling all points to Cluster 3 having the
potential for a large-scale shallow copper porphyry with a
high-grade core. Additional drilling is being planned to follow up
on these results.
Hole ID |
Interval (m) |
Cu (%) |
Au (g/t) |
CuEq (%) |
From (m) |
KHDDH630 |
61 |
0.10 |
0.03 |
0.11 |
7 |
Figure 6: Cross Section Drill
Hole KHDDH630 and KHDDH635.
Figure 7: Drill core photos from
KHDDH622 ad KHDDH635.
About Xanadu Mines
Xanadu is an ASX and TSX listed Exploration
company operating in Mongolia. We give investors exposure to
globally significant, large-scale copper-gold discoveries and
low-cost inventory growth. Xanadu maintains a portfolio of
exploration projects and remains one of the few junior explorers on
the ASX or TSX who jointly control a globally significant
copper-gold deposit in our flagship Kharmagtai project. Xanadu is
the Operator of a 50-50 JV with Zijin Mining Group in Khuiten
Metals Pte Ltd, which controls 76.5% of the Kharmagtai project.
For further information on Xanadu, please visit:
www.xanadumines.com or contact:
Colin MoorheadExecutive Chairman & Managing DirectorE:
colin.moorhead@xanadumines.comP: +61 2 8280 7497 |
Spencer ColeChief Financial & Development OfficerE:
spencer.cole@xanadumines.comP: +61 2 8280 7497 |
|
|
This Announcement was authorised for release by
Xanadu’s Board of Directors.
Appendix 1: Drilling Results
Note that true widths will generally be narrower
than those reported. See disclosure in JORC explanatory statement
attached.
Table 1: Drill hole collar
Hole ID |
Cluster |
East |
North |
RL |
Azimuth (°) |
Inc (°) |
Depth (m) |
KHDDH589 |
1 |
592148 |
4875347 |
1319 |
315 |
-60 |
228.5 |
KHDDH590 |
2 |
591074 |
4878009 |
1295 |
315 |
-60 |
300.0 |
KHDDH591 |
2 |
590226 |
4877369 |
1308 |
0 |
-60 |
200.0 |
KHDDH592 |
1 |
592030 |
4875318 |
1320 |
315 |
-60 |
282.5 |
KHDDH593 |
2 |
590750 |
4878168 |
1294 |
0 |
-60 |
200.0 |
KHDDH596 |
1 |
592378 |
4875268 |
1313 |
315 |
-60 |
316.6 |
KHDDH622 |
3 |
593518 |
4874425 |
1289 |
315 |
-60 |
221.8 |
KHDDH625 |
3 |
594030 |
4874188 |
1290 |
315 |
-60 |
259.4 |
KHDDH630 |
3 |
594218 |
4874708 |
1290 |
315 |
-60 |
201.0 |
KHDDH635 |
3 |
594460 |
4874441 |
1302 |
315 |
-60 |
200.0 |
KHDDH636 |
3 |
594794 |
4874708 |
1290 |
315 |
-60 |
200.0 |
KHDDH640 |
4 |
595385 |
4873935 |
1293 |
315 |
-60 |
200.0 |
KHDDH641 |
4 |
595991 |
4875418 |
1290 |
315 |
-60 |
200.0 |
KHDDH643 |
4 |
596431 |
4874228 |
1303 |
315 |
-60 |
218.6 |
KHDDH646 |
4 |
597073 |
4874708 |
1305 |
315 |
-60 |
200.0 |
Table 2: Significant drill
results
Hole ID |
Cluster |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Cu (%) |
CuEq (%) |
AuEq (g/t) |
KHDDH589 |
Cluster One |
2.2 |
30.5 |
28.3 |
0.16 |
0.16 |
0.25 |
0.48 |
including |
|
14 |
18 |
4 |
0.26 |
0.23 |
0.36 |
0.71 |
and |
|
42 |
68 |
26 |
0.18 |
0.06 |
0.15 |
0.29 |
and |
|
100 |
111.5 |
11.5 |
0.09 |
0.06 |
0.11 |
0.21 |
and |
|
176 |
188 |
12 |
0.07 |
0.05 |
0.09 |
0.17 |
and |
|
201 |
209 |
8 |
0.10 |
0.11 |
0.16 |
0.31 |
KHDDH590 |
Cluster Two |
163.8 |
277 |
113.2 |
0.18 |
0.10 |
0.19 |
0.36 |
including |
|
170 |
182 |
12 |
0.35 |
0.13 |
0.31 |
0.61 |
and |
|
289 |
297 |
8 |
1.59 |
0.07 |
0.88 |
1.72 |
including |
|
291 |
295 |
4 |
3.04 |
0.05 |
1.60 |
3.14 |
KHDDH592 |
Cluster One |
81 |
104 |
23 |
0.23 |
0.05 |
0.17 |
0.34 |
including |
|
81 |
87.6 |
6.6 |
0.49 |
0.05 |
0.30 |
0.59 |
and |
|
182 |
190 |
8 |
0.21 |
0.08 |
0.19 |
0.37 |
and |
|
215 |
240.2 |
25.2 |
0.04 |
0.09 |
0.11 |
0.22 |
KHDDH593 |
Cluster Two |
104 |
107.8 |
3.8 |
0.14 |
0.09 |
0.16 |
0.32 |
KHDDH622 |
Cluster Three |
9 |
51 |
42 |
0.01 |
0.08 |
0.08 |
0.16 |
and |
|
61 |
94 |
33 |
0.01 |
0.12 |
0.12 |
0.24 |
and |
|
127 |
142 |
15 |
0.09 |
1.26 |
1.31 |
2.56 |
including |
|
132.05 |
138 |
5.95 |
0.21 |
2.97 |
3.08 |
6.02 |
and |
|
215 |
219 |
4 |
0.03 |
0.48 |
0.50 |
0.98 |
KHDDH625 |
Cluster Three |
1.4 |
10 |
8.6 |
0.03 |
0.16 |
0.17 |
0.34 |
and |
|
28 |
48.3 |
20.3 |
0.01 |
0.29 |
0.30 |
0.59 |
including |
|
32 |
40 |
8 |
0.01 |
0.45 |
0.46 |
0.90 |
and |
|
64 |
70 |
6 |
0.02 |
0.00 |
0.00 |
0.00 |
and |
|
80.2 |
140 |
59.8 |
0.02 |
0.15 |
0.16 |
0.32 |
including |
|
90 |
99.54 |
9.54 |
0.02 |
0.19 |
0.20 |
0.39 |
and |
|
150 |
220 |
70 |
0.03 |
0.15 |
0.17 |
0.32 |
including |
|
184 |
194 |
10 |
0.12 |
0.24 |
0.30 |
0.58 |
and |
|
238 |
250 |
12 |
0.04 |
0.09 |
0.11 |
0.22 |
KHDDH630 |
Cluster Three |
7 |
68 |
61 |
0.02 |
0.11 |
0.12 |
0.24 |
and |
|
99.1 |
116 |
16.9 |
0.03 |
0.10 |
0.11 |
0.22 |
KHDDH635 |
Cluster Three |
3 |
7 |
4 |
0.01 |
0.13 |
0.14 |
0.27 |
and |
|
21 |
127.65 |
106.65 |
0.03 |
0.19 |
0.20 |
0.40 |
including |
|
31 |
35 |
4 |
0.22 |
0.85 |
0.95 |
1.87 |
including |
|
85 |
90.05 |
5.05 |
0.07 |
0.78 |
0.82 |
1.60 |
and |
|
157.7 |
200 |
42.3 |
0.02 |
0.11 |
0.12 |
0.23 |
KHDDH636 |
Cluster Three |
5.3 |
32.6 |
27.3 |
0.03 |
0.10 |
0.12 |
0.23 |
and |
|
49 |
58 |
9 |
0.06 |
0.07 |
0.10 |
0.20 |
and |
|
90 |
200 |
110 |
0.05 |
0.09 |
0.12 |
0.23 |
KHDDH640 |
Cluster Four |
No Significant Results |
KHDDH641 |
Cluster Four |
28.0 |
112.0 |
28.0 |
0.02 |
0.09 |
0.10 |
0.21 |
KHDDH643 |
Cluster Four |
No Significant Results |
KHDDH646 |
Cluster Four |
147.0 |
151.0 |
4.0 |
0.33 |
0.02 |
0.19 |
0.38 |
Appendix 2: Statements and
Disclaimers
Competent Person Statement
The information in this announcement that
relates to Mineral Resources is based on information compiled by Mr
Robert Spiers, who is responsible for the Mineral Resource
estimate. Mr Spiers is a full time Principal Geologist employed by
Spiers Geological Consultants (SGC) and is a Member of the
Australian Institute of Geoscientists. He has sufficient experience
relevant to the style of mineralisation and type of deposit under
consideration and to the activity he is undertaking to qualify as
the Qualified Person as defined in the CIM Guidelines and National
Instrument 43-101 and as a Competent Person under JORC Code 2012.
Mr Spiers consents to the inclusion in the report of the matters
based on this information in the form and context in which it
appears.
The information in this announcement that
relates to exploration results is based on information compiled by
Dr Andrew Stewart, who is responsible for the exploration data,
comments on exploration target sizes, QA/QC and geological
interpretation and information. Dr Stewart, who is an employee of
Xanadu and is a Member of the Australasian Institute of
Geoscientists, has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the
activity he is undertaking to qualify as the Competent Person as
defined in the 2012 Edition of the Australasian Code for Reporting
Exploration Results, Mineral Resources and Ore Reserves and the
National Instrument 43-101. Dr Stewart consents to the inclusion in
the report of the matters based on this information in the form and
context in which it appears.
Mineral Resources and Ore Reserves
Reporting Requirements
The 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (the JORC Code 2012) sets out minimum
standards, recommendations and guidelines for Public Reporting in
Australasia of Exploration Results, Mineral Resources and Ore
Reserves. The Information contained in this Announcement has been
presented in accordance with the JORC Code 2012.
The information in this Announcement relates to
the exploration results previously reported in ASX Announcements
which are available on the Xanadu website at:
https://www.xanadumines.com/site/investor-centre/asx-announcements
The Company is not aware of any new, material
information or data that is not included in those market
announcements.
Copper Equivalent
Calculations
The copper equivalent (CuEq)
calculation represents the total metal value for each metal,
multiplied by the conversion factor, summed and expressed in
equivalent copper percentage with a metallurgical recovery factor
applied.
Copper equivalent (CuEq) grade values were
calculated using the formula: CuEq = Cu + Au * 0.60049 *
0.86667.
Where Cu - copper grade (%); Au - gold grade
(g/t); 0.60049 - conversion factor (gold to copper); 0.86667 -
relative recovery of gold to copper (86.67%).
The copper equivalent formula was based on the following
parameters (prices are in USD): Copper price 3.4 $/lb;
Gold price 1400 $/oz; Copper recovery 90%; Gold recovery 78%;
Relative recovery of gold to copper = 78% / 90% = 86.67%.
Forward-Looking Statements
Certain statements contained in this
Announcement, including information as to the future financial or
operating performance of Xanadu and its projects may also include
statements which are ‘forward‐looking statements’ that may include,
amongst other things, statements regarding targets, estimates and
assumptions in respect of mineral reserves and mineral resources
and anticipated grades and recovery rates, production and prices,
recovery costs and results, capital expenditures and are or may be
based on assumptions and estimates related to future technical,
economic, market, political, social and other conditions. These
‘forward-looking statements’ are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
Xanadu, are inherently subject to significant technical, business,
economic, competitive, political and social uncertainties and
contingencies and involve known and unknown risks and uncertainties
that could cause actual events or results to differ materially from
estimated or anticipated events or results reflected in such
forward‐looking statements.
Xanadu disclaims any intent or obligation to
update publicly or release any revisions to any forward‐looking
statements, whether as a result of new information, future events,
circumstances or results or otherwise after the date of this
Announcement or to reflect the occurrence of unanticipated events,
other than required by the Corporations Act 2001 (Cth) and the
Listing Rules of the Australian Securities Exchange
(ASX) and Toronto Stock Exchange
(TSX). The words ‘believe’, ‘expect’,
‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’,
‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’,
‘schedule’ and similar expressions identify forward‐looking
statements.
All ‘forward‐looking statements’ made in this
Announcement are qualified by the foregoing cautionary statements.
Investors are cautioned that ‘forward‐looking statements’ are not
guarantee of future performance and accordingly investors are
cautioned not to put undue reliance on ‘forward‐looking statements’
due to the inherent uncertainty therein.
For further information please visit the Xanadu
Mines’ Website at www.xanadumines.com.
Appendix 2: Kharmagtai Table 1 (JORC
2012)
Set out below is Section 1 and Section 2 of
Table 1 under the JORC Code, 2012 Edition for the Kharmagtai
project. Data provided by Xanadu. This Table 1 updates the JORC
Table 1 disclosure dated 7 June 2023.
JORC TABLE 1 - SECTION 1 - SAMPLING
TECHNIQUES AND DATA
(Criteria in this section apply to all succeeding sections).
Criteria |
Commentary |
Sampling techniques |
- Representative ½
core samples were split from PQ, HQ & NQ diameter diamond drill
core on site using rock saws, on a routine 2m sample interval that
also honours lithological/intrusive contacts.
- The orientation
of the cut line is controlled using the core orientation line
ensuring uniformity of core splitting wherever the core has been
successfully oriented.
- Sample intervals
are defined and subsequently checked by geologists, and sample tags
are attached (stapled) to the plastic core trays for every sample
interval.
- Reverse
Circulation (RC) chip samples are ¼ splits from
one meter (1m) intervals using a 75%:25% riffle
splitter to obtain a 3kg sample
- RC samples are
uniform 2m samples formed from the combination of two ¼ split 1m
samples.
|
Drilling techniques |
- The Mineral
Resource Estimation has been based upon diamond drilling of PQ, HQ
and NQ diameters with both standard and triple tube core recovery
configurations, RC drilling and surface trenching with channel
sampling.
- All drill core
drilled by Xanadu has been oriented using the “Reflex Ace”
tool.
|
Drill sample recovery |
- Diamond drill
core recoveries were assessed using the standard industry (best)
practice which involves removing the core from core trays;
reassembling multiple core runs in a v-rail; measuring core lengths
with a tape measure, assessing recovery against core block depth
measurements and recording any measured core loss for each core
run.
- Diamond core
recoveries average 97% through mineralisation.
- Overall, core
quality is good, with minimal core loss. Where there is localised
faulting and or fracturing core recoveries decrease, however, this
is a very small percentage of the mineralised intersections.
- RC recoveries
are measured using whole weight of each 1m intercept measured
before splitting
- Analysis of
recovery results vs grade shows no significant trends that might
indicate sampling bias introduced by variable recovery in
fault/fracture zones.
|
Logging |
- All drill core
is geologically logged by well-trained geologists using a modified
“Anaconda-style” logging system methodology. The Anaconda method of
logging and mapping is specifically designed for porphyry Cu-Au
mineral systems and is entirely appropriate to support Mineral
Resource Estimation, mining and metallurgical studies.
- Logging of
lithology, alteration and mineralogy is intrinsically qualitative
in nature. However, the logging is subsequently supported by 4 Acid
ICP-MS (48 element) geochemistry and SWIR spectral mineralogy
(facilitating semi-quantitative/calculated mineralogical,
lithological and alteration classification) which is integrated
with the logging to improve cross section interpretation and 3D
geological model development.
- Drill core is
also systematically logged for both geotechnical features and
geological structures. Where drill core has been successfully
oriented, the orientation of structures and geotechnical features
are also routinely measured.
- Both wet and dry
core photos are taken after core has been logged and marked-up but
before drill core has been cut.
|
Sub-sampling techniques and sample
preparation |
- All drill core
samples are ½ core splits from either PQ, HQ or NQ diameter cores.
A routine 2m sample interval is used, but this is varied locally to
honour lithological/intrusive contacts. The minimum allowed sample
length is 30cm.
- Core is
appropriately split (onsite) using diamond core saws with the cut
line routinely located relative to the core orientation line (where
present) to provide consistency of sample split selection.
- The diamond saws
are regularly flushed with water to minimize potential
contamination.
- A field
duplicate ¼ core sample is collected every 30th sample to ensure
the “representivity of the in-situ material collected”. The
performance of these field duplicates is routinely analysed as part
of Xanadu’s sample QC process.
- Routine sample
preparation and analyses of DDH samples were carried out by ALS
Mongolia LLC (ALS Mongolia), who operates an
independent sample preparation and analytical laboratory in
Ulaanbaatar.
- All samples were
prepared to meet standard quality control procedures as follows:
Crushed to 75% passing 2mm, split to 1kg, pulverised to 85% passing
200 mesh (75 microns) and split to 150g sample pulp.
- ALS Mongolia
Geochemistry labs quality management system is certified to ISO
9001:2008.
- The sample
support (sub-sample mass and comminution) is appropriate for the
grainsize and Cu-Au distribution of the porphyry Cu-Au
mineralization and associated host rocks.
|
Quality of assay data and laboratory tests |
- All samples were
routinely assayed by ALS Mongolia for gold
- Au is determined
using a 25g fire assay fusion, cupelled to obtain a bead, and
digested with Aqua Regia, followed by an atomic absorption
spectroscopy (AAS) finish, with a lower detection
(LDL) of 0.01 ppm.
- All samples were
also submitted to ALS Mongolia for the 48-element package ME-ICP61
using a four-acid digest (considered to be an effective total
digest for the elements relevant to the Mineral Resource Estimate
(MRE)). Where copper is over-range (>1% Cu), it
is analysed by a second analytical technique (Cu-OG62), which has a
higher upper detection limit (UDL) of 5%
copper.
- Quality
assurance has been managed by insertion of appropriate Standards
(1:30 samples – suitable Ore Research Pty Ltd certified standards),
Blanks (1:30 samples), Duplicates (1:30 samples – ¼ core duplicate)
by XAM.
- Assay results
outside the optimal range for methods were re-analysed by
appropriate methods.
- Ore Research Pty
Ltd certified copper and gold standards have been implemented as a
part of QC procedures, as well as coarse and pulp blanks, and
certified matrix matched copper-gold standards.
- QC monitoring is
an active and ongoing processes on batch by batch basis by which
unacceptable results are re-assayed as soon as practicable.
- Prior to 2014:
Cu, Ag, Pb, Zn, As and Mo were routinely determined using a
three-acid-digestion of a 0.3g sub-sample followed by an AAS finish
(AAS21R) at SGS Mongolia. Samples were digested with nitric,
hydrochloric and perchloric acids to dryness before leaching with
hydrochloric acid to dissolve soluble salts and made to 15ml volume
with distilled water. The LDL for copper using this technique was
2ppm. Where copper was over-range (>1% Cu), it was analysed by a
second analytical technique (AAS22S), which has a higher upper
detection limit (UDL) of 5% copper. Gold analysis method was
essentially unchanged.
|
Verification of sampling and assaying |
- All assay data
QA/QC is checked prior to loading into XAM’s Geobank data
base.
- The data is
managed by XAM geologists.
- The data base
and geological interpretation is managed by XAM.
- Check assays are
submitted to an umpire lab (SGS Mongolia) for duplicate
analysis.
- No twinned drill
holes exist.
- There have been
no adjustments to any of the assay data.
|
Location of data points |
- Diamond drill
holes have been surveyed with a differential global positioning
system (DGPS) to within 10cm accuracy.
- The grid system
used for the project is UTM WGS-84 Zone 48N
- Historically,
Eastman Kodak and Flexit electronic multi-shot downhole survey
tools have been used at Kharmagtai to collect down hole azimuth and
inclination information for the majority of the diamond drill
holes. Single shots were typically taken every 30m to 50m during
the drilling process, and a multi-shot survey with readings every
3-5m are conducted at the completion of the drill hole. As these
tools rely on the earth’s magnetic field to measure azimuth, there
is some localised interference/inaccuracy introduced by the
presence of magnetite in some parts of the Kharmagtai mineral
system. The extent of this interference cannot be quantified on a
reading-by-reading basis.
- More recently
(since September 2017), a north-seeking gyro has been employed by
the drilling crews on site (rented and operated by the drilling
contractor), providing accurate downhole orientation measurements
unaffected by magnetic effects. Xanadu have a permanent calibration
station setup for the gyro tool, which is routinely calibrated
every 2 weeks (calibration records are maintained and were
sighted)
- The project
Digital Terrain Model (DTM) is based on 1m
contours from satellite imagery with an accuracy of ±0.1 m.
|
Data spacing and distribution |
- Holes spacings
range from <50m spacings within the core of mineralization to
+500m spacings for exploration drilling. Hole spacings can be
determined using the sections and drill plans provided.
- Holes range from
vertical to an inclination of -60 degrees depending on the attitude
of the target and the drilling method.
- The data spacing
and distribution is sufficient to establish anomalism and targeting
for porphyry Cu-Au, tourmaline breccia and epithermal target
types.
- Holes have been
drilled to a maximum of 1,304m vertical depth.
- The data spacing
and distribution is sufficient to establish geological and grade
continuity, and to support the Mineral Resource
classification.
|
Orientation of data in relation to geological
structure |
- Drilling is
conducted in a predominantly regular grid to allow unbiased
interpretation and targeting.
- Scissor
drilling, as well as some vertical and oblique drilling, has been
used in key mineralised zones to achieve unbiased sampling of
interpreted structures and mineralised zones, and in particular to
assist in constraining the geometry of the mineralised hydrothermal
tourmaline-sulphide breccia domains.
|
Sample sCuEqrity |
- Samples are
delivered from the drill rig to the core shed twice daily and are
never left unattended at the rig.
- Samples are
dispatched from site in locked boxes transported on XAM company
vehicles to ALS lab in Ulaanbaatar.
- Sample shipment
receipt is signed off at the Laboratory with additional email
confirmation of receipt.
- Samples are then
stored at the lab and returned to a locked storage site.
|
Audits or reviews |
- Internal audits
of sampling techniques and data management are undertaken on a
regular basis, to ensure industry best practice is employed at all
times.
- External reviews
and audits have been conducted by the following groups:
- 2012: AMC
Consultants Pty Ltd. was engaged to conduct an Independent
Technical Report which reviewed drilling and sampling procedures.
It was concluded that sampling and data record was to an
appropriate standard.
- 2013: Mining
Associates Ltd. was engaged to conduct an Independent Technical
Report to review drilling, sampling techniques and QAQC. Methods
were found to conform to international best practice.
- 2018: CSA Global
reviewed the entire drilling, logging, sampling, sample shipping
and laboratory processes during the competent persons site visit
for the 2018 MRE and found the systems and adherence to protocols
to be to an appropriate standard.
|
JORC TABLE 1 - SECTION 2 - REPORTING OF
EXPLORATION RESULTS
(Criteria in this section apply to all succeeding sections).
Criteria |
Commentary |
Mineraltenementand
landtenurestatus |
- The Project comprises 2 Mining
Licences (MV-17129A Oyut Ulaan and (MV-17387A Kharmagtai):
- Xanadu now owns 90% of Vantage LLC,
the 100% owner of the Oyut Ulaan mining licence.
- The Kharmagtai mining license
MV-17387A is 100% owned by Oyut Ulaan LLC. Xanadu has an 85%
interest in Mongol Metals LLC, which has 90% interest in Oyut Ulaan
LLC. The remaining 10% in Oyut Ulaan LLC is owned by Quincunx (BVI)
Ltd (“Quincunx”).
- The Mongolian Minerals Law (2006)
and Mongolian Land Law (2002) govern exploration, mining and land
use rights for the project.
|
Explorationdone
byotherparties |
- Previous exploration at Kharmagtai
was conducted by Quincunx Ltd, Ivanhoe Mines Ltd and Turquoise Hill
Resources Ltd including extensive drilling, surface geochemistry,
geophysics, mapping.
- Previous exploration at Red
Mountain (Oyut Ulaan) was conducted by Ivanhoe Mines.
|
Geology |
- The mineralisation is characterised
as porphyry copper-gold type.
- Porphyry copper-gold deposits are
formed from magmatic hydrothermal fluids typically associated with
felsic intrusive stocks that have deposited metals as sulphides
both within the intrusive and the intruded host rocks. Quartz
stockwork veining is typically associated with sulphides occurring
both within the quartz veinlets and disseminated thought out the
wall rock. Porphyry deposits are typically large tonnage deposits
ranging from low to high grade and are generally mined by large
scale open pit or underground bulk mining methods. The deposits at
Kharmagtai are atypical in that they are associated with
intermediate intrusions of diorite to quartz diorite composition;
however, the deposits are in terms of contained gold significant,
and similar gold-rich porphyry deposits.
|
Drill holeInformation |
- Diamond drill holes are the
principal source of geological and grade data for the Project.
- See figures in this ASX/TSX
Announcement.
|
DataAggregation methods |
- The CSAMT data was converted into
2D line data using the Zonge CSAMT processing software and then
converted into 3D space using a UBC inversion process. Inversion
fit was acceptable, and error was generally low.
- A nominal cut-off of 0.1% CuEq is
used in copper dominant systems for identification of potentially
significant intercepts for reporting purposes. Higher grade
cut-offs are 0.3%, 0.6% and 1% CuEq.
- A nominal cut-off of 0.1g/t eAu is
used in gold dominant systems like Golden Eagle for identification
of potentially significant intercepts for reporting purposes.
Higher grade cut-offs are 0.3g/t, 0.6g/t and 1g/t eAu.
- Maximum contiguous dilution within
each intercept is 9m for 0.1%, 0.3%, 0.6% and 1% CuEq.
- Most of the reported intercepts are
shown in sufficient detail, including maxima and subintervals, to
allow the reader to make an assessment of the balance of high and
low grades in the intercept.
- Informing samples have been
composited to two metre lengths honouring the geological domains
and adjusted where necessary to ensure that no residual sample
lengths have been excluded (best fit).
The copper equivalent (CuEq) calculation
represents the total metal value for each metal, multiplied by the
conversion factor, summed and expressed in equivalent copper
percentage with a metallurgical recovery factor applied. The copper
equivalent calculation used is based off the CuEq calculation
defined by CSA Global in the 2018 Mineral Resource Upgrade.Copper
equivalent (CuEq) grade values were calculated
using the following formula: CuEq = Cu + Au *
0.62097 * 0.8235,Gold Equivalent (eAu) grade
values were calculated using the following formula:
eAu = Au + Cu / 0.62097 * 0.8235.Where:Cu - copper grade
(%)Au - gold grade (g/t)0.62097 - conversion factor (gold to
copper)0.8235 - relative recovery of gold to copper (82.35%)The
copper equivalent formula was based on the following parameters
(prices are in USD):
- Copper price - 3.1 $/lb (or 6834
$/t)
- Gold price - 1320 $/oz
- Copper recovery - 85%
- Gold recovery - 70%
- Relative recovery of gold to copper
= 70% / 85% = 82.35%.
|
Relationship between mineralisationon
widthsand
interceptlengths |
- Mineralised structures are variable
in orientation, and therefore drill orientations have been adjusted
from place to place in order to allow intersection angles as close
as possible to true widths.
- Exploration results have been
reported as an interval with 'from' and 'to' stated in tables of
significant economic intercepts. Tables clearly indicate that true
widths will generally be narrower than those reported.
|
Diagrams |
- See figures in the body of this
ASX/TSX Announcement.
|
Balancedreporting |
- Resources have been reported at a
range of cut-off grades, above a minimum suitable for open pit
mining, and above a minimum suitable for underground mining.
|
Other substantiveexploration
data |
- Extensive work in this area has
been done and is reported separately.
|
FurtherWork |
- The mineralisation is open at depth
and along strike.
- Current estimates are restricted to
those expected to be reasonable for open pit mining. Limited
drilling below this depth (-300m RLl) shows widths and grades
potentially suitable for underground extraction.
- Exploration on going.
|
JORC TABLE 1 - SECTION 3 - ESTIMATION
AND REPORTING OF MINERAL RESOURCES
Mineral Resources are not reported so this is
not applicable to this Announcement. Please refer to the Company’s
ASX Announcement dated 1 December 2021 for Xanadu’s most recent
reported Mineral Resource Estimate and applicable Table 1, Section
3.
JORC TABLE 1 - SECTION 4 - ESTIMATION
AND REPORTING OF ORE RESERVES
Ore Reserves are not reported so this is not
applicable to this Announcement.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b0c9d0f2-1666-48e7-9f05-a28c2dd2da15
https://www.globenewswire.com/NewsRoom/AttachmentNg/536d8e9a-10f7-4e47-862b-e10fb15b3597
https://www.globenewswire.com/NewsRoom/AttachmentNg/70e880b3-7c7e-46ec-9c47-0001672a2b89
https://www.globenewswire.com/NewsRoom/AttachmentNg/0c36ff9c-46ec-4e78-bdc6-8d2b0cee96bb
https://www.globenewswire.com/NewsRoom/AttachmentNg/33c0dd99-000d-4886-8973-3f935c39b4a6
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