Xanadu Mines (ASX:XAM) has begun 3D geological modelling after recording multiple breakthrough achievements from ongoing diamond drilling at its Kharmagtai Copper-Gold Project in Mongolia.
The $109.73 million market capitalisation company is currently operating 3 diamond drill rigs, which are focused on delivering discoveries outside the current Mineral Resource Estimate (MRE) alongside its joint venture (JV) partner Zijin Mining Group (SHA:601899).
The company has also entered into a trading halt ahead of an upcoming planned capital raise.
Xanadu reports drilling at Kharmagati has intersected mineralisation across multiple ‘largely’ unexplored porphyry clusters, including high-density stockwork, breccia, and gold-only mineralisation.
Shallow drilling at the Cluster 2 target has extended mineralisation 800m along strike from the current MRE and, given proximity to the ‘high-grade’ Stockwork Hill deposit, could represent a mineralised porphyry stockwork offset.
Multiple new, ‘broad’ zones of gold-rich tourmaline breccia mineralisation have also been delivered over a 2km strike at Cluster 5.
Meanwhile, the first of 4 planned deep diamond drillholes targeting mineralisation below the White Hill deposit — the largest deposit delineated to date at Kharmagtai — has expanded the mineralised system by over 600m.
Key results include hole KHDDH648 with 1,080m @ 0.21% copper equivalent (eCu) from 491m; and hole KHDDH786 with 144m @ 0.34% eCu from 117m including 12m @ 0.63% eCu from 144m and 12.3m @ 0.54% eCu from 168m.
The company states that ‘extensive’ discovery drilling continues with more than 52,000m of infill and extensional drilling completed to date at the project. Regular news flow is expected to continue throughout 2023.
Drilling has been designed to target additional porphyry copper-gold deposits outside the currently defined MRE and also serves to inform future infrastructure location decisions associated with the potential development of the Kharmagtai project into a ‘large-scale’ mining operation.
Xanadu Mines Executive Vice President of Exploration Andrew Stewart following delivery of higher-grade mineralisation from the infill and extensional drilling program, this ‘purposeful program’ represents the most significant exploration pursuit in recent years.
“The good strike rate of significant intercepts in these holes provides us confidence that more shallow, high-grade deposits will be discovered at Kharmagtai.”
Xanadu Mines is a dual-listed explorer operating in Mongolia. The company maintains a portfolio of exploration projects and remains one of the few junior explorers on the Australian Securities Exchange (ASX) or Toronto Stock Exchange (TSX) who jointly control a globally ‘significant’ copper-gold deposit.
The Kharmagtai project is operated by Xanadu as part of a 50:50 ratio JV with Zijin Mining Group in Khuiten Metals, which controls 76.5% of the project.
As of 30 September 2023, Xanadu Mines had $4.762 million cash and cash equivalents at hand, according to its latest quarterly report. The company is looking to add additional funds through an upcoming capital raise. No details of the capital raise have been disclosed to the market.