Xanadu Mines Ltd is pleased to report that on-ground exploration activities have recommenced at the highly prospective Red Mountain Joint Venture (JV) with the Japan Oil, Gas and Metals National Corporation (JOGMEC).
Highlights
Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “We are excited to have exploration drilling recommencing at our Red Mountain JV with JOGMEC. The fact that we can commence operational activities following local COVID-19 related restrictions is testament to the proactive and effective approach being taken by the Government of Mongolia in managing the pandemic.
Red Mountain offers a rare opportunity to access a large, under-explored porphyry district. In the coming months, we will deploy a systematic exploration program, including diamond drilling, that we expect will provide a new perspective on the mineral potential of the Red Mountain district. Diamond drilling will be testing several large-scale drill targets.”
About Red Mountain
The Red Mountain JV project, located within the Dornogovi Province of southern Mongolia, approximately 420 kilometres southeast of Ulaanbaatar (Figure 1), is a joint venture between Xanadu and JOGMEC. The project covers approximately 57 square kilometres in a frontier terrane with significant mineral endowment and has a granted 30-year mining licence. Red Mountain comprises a cluster of outcropping mineralising porphyry intrusions which display features typically found in the shallower parts of porphyry systems where narrow dykes and patchy mineralisation branch out above a mineralised stock. This underexplored porphyry district includes multiple porphyry copper-gold centres, mineralised tourmaline breccia pipes copper-gold/base metal skarns and high-grade epithermal gold veins.
Existing porphyry mineralisation at Red Mountain is hosted within narrow stockwork zones that have been focused around several narrow structurally controlled monzonite porphyry dykes. Emplacement of mineralisation appears to be controlled by intersection of northeast and north-northwest trending structures. The quartz-chalcopyrite-bornite stockwork mineralisation is associated with strong reddening albite-sericite-biotite-magnetite (potassic) alteration assemblage in the host lithology. The thin nature of the mineralising dykes, their irregular intrusion geometry, and the patchy distribution of stockwork mineralisation are all features typically found in the shallower parts of porphyry systems, where narrow dykes and patchy mineralisation branch out above a mineralised stock. Similar orebody geometries are found in the shallower parts of the Northparkes porphyry copper-gold (Cu-Au) deposits in NSW, where porphyry mineralisation has also been tightly focused along a controlling structure adjacent to a felsic pluton. Like Northparkes, there is the potential for further mineralisation along the main structures
Joint venture with JOGMEC
JOGMEC may earn up to 51% beneficial interest in the project by sole funding up to $US7.2 million in exploration expenditure over the next four years. The exploration objective of the earn-in deal is to discover Mongolia’s next world-class copper-porphyry deposit.
About Xanadu Mines
Xanadu is an ASX and TSX listed exploration company that seeks to discover and define globally significant porphyry copper-gold assets in Mongolia. We give investors exposure to large scale copper-gold discoveries, and we create liquidity events for our shareholders at peak value points in the mining life cycle. Xanadu delivers this through a low cost of discovery, inventory growth, and by progressing projects from Discovery towards Pre-Feasibility.
For further information, please visit www.xanadumines.com or contact:
Andrew Stewart
CEO
Xanadu Mines Ltd
Andrew.stewart@xanadumines.com
+61 409 819 922