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Xanadu Mines Makes High Grade Copper-Gold Discovery At Kharmagtai

Xanadu Mines (ASX:XAM) has found another high grade copper zone at its flagship Kharmagtai copper-gold project in Mongolia.

Kharmagtai is living up to the wraps on it as one of the most promising copper-gold projects in Asia with today's drilling results.

The discovery resulted from pin point targeting and drilling of targets lying under shallow cover along strike from existing deposits within the Kharmagtai project.

Drilling has reinforced the potential of the Tourmaline Breccia unit to host high grade mineralisation on a large scale.

Diamond drill hole KHDDH371 intersected high-grade copper-gold breccia hosted massive sulphide mineralisation:

- 50 metres grading 1.84% copper and 0.73g/t gold (2.31% Copper Equivalent grade) from 374 metres including;
- 27 metres grading 2.55% copper and 0.94g/t gold (3.15% CuEq) from 384 metres.

The massive sulphide mineralisation is flanked by a broad zone of porphyry-related breccia mineralisation:

- 415.2 metres grading 0.63% copper and 0.24g/t gold (0.79% CuEq) from 88.8 metres including;
- 243.8 metres grading 0.81% copper and 0.32g/t gold (1% CuEq) from 242.2 metres.

The hole extends known mineralisation to the north.

Xanadu's chief executive officer, Dr. Andrew Stewart, said:

"These outstanding results support Xanadu's interpretation that the porphyry-breccia complex at Kharmagtai has the potential to be a significant copper-gold system with similarities to other very strongly mineralised tourmaline breccia deposits globally."

Follow up drilling is underway. Exploration for 2015 is fully-funded.

More detail

The hole tested the northern limits of the known mineralisation and intersected high grade mineralisation outside the previously interpreted boundary.

Promisingly, this higher grade portion of the tourmaline breccia mineralisation is open to the north.

Fourth most endowed copper province globally

The South Gobi Province is the fourth most endowed copper province globally.

It is a highly mineralised and vastly underexplored mineral belts known to host large deposits.

Adding further to the area is proximity to infrastructure and the North Asia market.

Analysis

Today's results indicate just how far the revamped Xanadu has come under new CEO Dr Andrew Stewart and on the way to expanding the significant initial resource base at Kharmagtai of 203Mt averaging 0.34% copper and 0.33g/t gold (0.50% Copper Equivalent).

Kharmagtai is shaping as a globally significant copper-gold project, certainly one of the most important in Asia.

Indeed, based on results to date, we see potential for the higher grade copper-gold resource at Kharmagtai to increase to 150mt to 200mt.

Certainly, at the current share price of $0.12 significantly undervalues Xanadu. On today's results we can see the shares flying.

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