Xanadu Mines steps-up drilling to boost copper-gold bounty in Mongolia

Xanadu Mines LL C is stepping up drilling at its Kharmagtai project in Mongolia as it seeks to expand existing copper-gold resource and test near-surface regional targets. The company has engaged extra drill rigs for the project in the South Gobi region, not far from the Oyu Tolgoi Copper-Gold Project. Four rigs will be used for exploration drilling to test highgrade mineralisation below existing resource and multiple near-surface priority targets. This work, which will increase during the Northern Hemisphere spring, will follow-up field activities and drilling during the December quarter 2017. Andrew Stewart, managing director and chief executive officer, remarked, “We believe Kharmagtai represents one of the most promising copper and gold discoveries being explored globally at present. Recent stepout drilling around the maiden shallow resources at Copper Hill, Stockwork Hill and White Hill has delivered some exceptional results. This new drilling has defined significant extensions to highgrade mineralisation at all three deposits, which is sure to extend resources. Maintain our dual drill strategy. With the expansion of the drilling fleet at Kharmagtai to four drill rigs, we plan to maintain our dual drill strategy. This encompasses expanding known mineralisation through exploration of tourmaline breccia-hosted Baigal.G, Tugsbilig.B ZGM Batsaikhan.S / ZGM© mineralisation below and along strike from the current resources and drill testing all shallow highpriority porphyry copper-gold and gold targets undercover.”

The deposits of Stockwork Hill, White Hill and Copper Hill have a combined resource of 203 million tonnes at 0.34 percent copper and 0.33 g/t gold for circa 1.1 million tonnes of copper equivalent. Stockwork Hill is open at depth, to the east and west and may connect to White Hill to the south. White Hill is open at depth, to the east, south and west, and Copper Hill is showing growth potential at depth. Xanadu has also received strong results from the Red Mountain project, which is to the east of Kharmagtai. Interpretation of the ground penetrating radar continues and Xanadu is planning for the field season in spring. The company is well-funded with a cash balance of USD 9.1 million as of December 31, 2017. It has also recently increased its holding in Mongol Metals LLC to 85 percent, which provides an effective interest of 76.5 percent in the Kharmagtai project.