Mr. Colin Moorhead reports
NEW HIGH-GRADE COPPER-GOLD ZONE EMERGING AT WHITE HILL
Xanadu Mines Ltd. and its joint venture partner Zijin Mining Group Co. Ltd. have provided an update on recent infill drilling at the Kharmagtai project in Mongolia. Infill drilling has defined a new zone (core) of high-grade copper and gold mineralization at the White Hill deposit and results continue to validate the total mineral resource model.
Highlights
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Approximately 27,000 metres of phase one diamond drilling have been completed (out of 30,000 m total) at both the Stockwork Hill and White Hill deposits, at Kharmagtai.
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Exceptional highlights from an additional 14 drill holes demonstrate a new high-grade zone (core) is emerging at White Hill and extending below the currently optimized pit.
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Best drilling results include:
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KHDDH638 -- 544 m at 0.4 per cent copper equivalent (CuEq) (0.34 per cent Cu and 0.12 g/t Au) from 273.4 m:
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Including 63 m at 1.03 per cent CuEq (0.92 per cent Cu and 0.23 g/t Au) from 634 m;
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Including 28 m at 1.45 per cent CuEq (1.45 per cent Cu and 0.32 g/t Au) from 645 m.
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KHDDH634 -- 654 m at 0.34 per cent CuEq (0.28 per cent Cu and 0.11 g/t Au) from 172 m:
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Including 32 m at 0.61 per cent CuEq (0.48 per cent Cu and 0.25g/t Au) from 512 m;
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And 58 m at 0.71 per cent CuEq (0.59 per cent Cu and 0.23 g/t Au) from 617 m;
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Including eight m at 1.45 per cent CuEq (1.17 per cent Cu and 0.50g/t Au) from 651 m.
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Newly identified high-grade (over 1 per cent CuEq) core at White Hill demonstrates potential to enhance the 2021 mineral resource estimate (MRE) (three million tonnes of copper and eight million ounces gold (1.98 million copper equivalent (CuEq) indicated, 2.33 million t CuEq inferred)).
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Kharmagtai joint venture is financing $35-million (U.S.) prefeasibility study completion and discovery exploration, aiming toward decision to mine in fourth quarter of fiscal year 2024.
Xanadu's executive chairman and managing director, Colin Moorhead, said:
"I'm particularly proud of our hardworking geology team making steady progress at Kharmagtai, better defining the White Hill deposit. Both drill holes KHDDH638 and KHDDH634 have effectively intercepted the top of a previously undefined high-grade core at White Hill .
"Both Stockwor and Copper Hill deposits feature these higher-grade zones (core), and previous drilling at White Hill has suggested such a zone may be present there also.
"However, this is the first time we have observed significant intervals spanning greater than 50 m of mineralization at grades greater than 1 per cent CuEq at White Hill.
"We see this as a very positive result, with strong potential to impact PFS pit optimization and very encouraging for higher grade mineralization to be uncovered at depth."
Infill drilling intercepts high-grade core at White Hill
Approximately 27,000 m of infill drilling has been completed, as part of the 30,000 m phase one infill drilling program. Assay results have been returned for 14 additional drill holes, with results generally better than, or in line with, 2021 MRE grades.
Several drill holes have encountered materially better grade relative to the White Hill MRE resource grade. Drill hole KHDDH638, located on the southern margin of the White Hill deposit, targeted a mineralized and resource controlling fault, intersecting a significantly higher-grade zone of copper and gold mineralization that is located below the current optimized pit design.
Drill hole KHDDH634 targeted definition and expansion of mineralization at White Hill within the current mineral resource estimate. It intersected the top of a new high-grade zone and returned the interval in the attached table along the edge and outside of the current open-pit optimization.
About the infill drilling program
Four diamond drill rigs are currently focused on Kharmagtai infill drilling, with the objective to target areas with potential for future mineral resource to ore reserve conversion. Totalling about 30,000 metres, the infill drilling program is planned to specifically increase the resource confidence category from inferred to indicated. As such, the planned drill holes aim to remove any mineralization knowledge gaps around the edges of existing deposits.
Kharmagtai currently has an inferred and indicated resource of 1.1 billion tonnes containing three million t Cu and eight million oz Au (1). As part of the Kharmagtai PFS, the resource will be upgraded to indicated classification, enabling a maiden, JORC-compliant ore reserve to be reported. To achieve this, the infill drilling program is designed to upgrade and extend strike length of the shallow open-pit resource areas and selected deeper high-grade zones, including investigation of near-mine, higher-grade extensions.
About Xanadu Mines Ltd.
Xanadu is an Australian Securities Exchange- and Toronto Stock Exchange-listed exploration company operating in Mongolia. The company gives 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 which jointly control a globally significant copper-gold deposit in its 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 per cent of the Kharmagtai project.
SIGNIFICANT DRILL RESULTS
From To Int. Au Cu CuEq AuEq
Hole ID (m) (m) (m) (g/t) (%) (%) (g/t)
KHDDH624 0 397 397 0.10 0.18 0.24 0.46
including 85 139.2 54.2 0.15 0.26 0.33 0.65
including 149 166.7 17.7 0.17 0.24 0.32 0.63
including 183 212.6 29.6 0.22 0.31 0.42 0.82
including 229 238.1 9.1 0.14 0.27 0.35 0.68
including 321.6 330 8.4 0.18 0.32 0.41 0.81
including 340 362.7 22.7 0.20 0.30 0.40 0.79
and 411 423.6 12.6 0.08 0.14 0.18 0.35
KHDDH626 3 596 593 0.14 0.25 0.32 0.63
including 119 241 122 0.16 0.30 0.38 0.75
including 256.9 400 143.1 0.17 0.28 0.37 0.72
including 364 370 6 0.23 0.43 0.55 1.07
including 412 501.98 89.98 0.16 0.25 0.33 0.64
including 512 596 84 0.18 0.32 0.41 0.80
KHDDH627 13 672.8 659.8 0.11 0.21 0.26 0.52
including 37 42.7 5.7 0.12 0.38 0.45 0.87
including 65 71 6 0.06 0.25 0.28 0.54
including 201 222 21 0.12 0.25 0.31 0.60
including 232 294.6 62.6 0.23 0.43 0.55 1.07
including 246 272 26 0.29 0.57 0.71 1.40
including 331 337 6 0.16 0.26 0.34 0.67
including 347 376 29 0.17 0.27 0.36 0.70
including 426 464 38 0.15 0.26 0.34 0.66
including 523 546 23 0.13 0.21 0.27 0.53
including 577 599 22 0.12 0.23 0.29 0.58
including 629 645.4 16.4 0.13 0.27 0.33 0.65
including 663 667 4 0.16 0.30 0.38 0.73
KHDDH628 10 22 12 0.67 0.06 0.40 0.79
including 10 18 8 0.93 0.07 0.55 1.07
and 32 50 18 0.15 0.03 0.10 0.20
KHDDH629 3.3 125 121.7 0.07 0.14 0.17 0.34
including 3.3 13 9.7 0.18 0.14 0.24 0.47
including 49 53 4 0.16 0.44 0.51 1.01
including 111 121 10 0.09 0.29 0.34 0.66
KHDDH631 97 705.6 608.6 0.09 0.20 0.24 0.48
including 270.9 281 10.1 0.15 0.38 0.46 0.90
including 339 407.5 68.5 0.13 0.28 0.35 0.68
including 357 361 4 0.22 0.66 0.77 1.51
including 432.4 516.4 84 0.14 0.26 0.33 0.64
including 527 544.6 17.6 0.12 0.28 0.34 0.66
including 554.8 575 20.2 0.12 0.24 0.30 0.59
including 609 613 4 0.19 0.36 0.45 0.88
including 639 655 16 0.13 0.30 0.36 0.71
including 669 673 4 0.11 0.26 0.32 0.62
including 685 705.6 20.6 0.12 0.31 0.37 0.72
KHDDH632 255 259 4 0.06 0.27 0.30 0.58
KHDDH633 0 271 271 0.08 0.16 0.20 0.39
including 4 15.4 11.4 0.26 0.38 0.51 1.00
including 4 13 9 0.25 0.37 0.50 0.98
including 35 68 33 0.11 0.24 0.29 0.57
including 88 98.5 10.5 0.07 0.24 0.27 0.54
and 283.3 321 37.7 0.03 0.09 0.11 0.21
and 333 375.6 42.6 0.04 0.09 0.11 0.21
KHDDH634 126 160 34 0.03 0.11 0.12 0.24
and 172 826.5 654.5 0.11 0.28 0.34 0.67
including 352 360.09 8.09 0.14 0.25 0.32 0.63
including 392 410.32 18.32 0.14 0.27 0.34 0.67
including 426 567.5 141.5 0.18 0.39 0.48 0.94
including 494 502 8 0.29 0.63 0.78 1.53
including 512 544 32 0.25 0.48 0.61 1.19
including 556 567.5 11.5 0.19 0.54 0.63 1.24
including 617 675 58 0.23 0.59 0.71 1.38
including 651 659 8 0.50 1.17 1.43 2.79
KHDDH637 2.7 360.1 357.4 0.13 0.24 0.31 0.61
including 25 31 6 0.20 0.31 0.41 0.80
including 42 186 144 0.15 0.30 0.38 0.74
including 123 129 6 0.33 0.46 0.63 1.23
including 222.6 359 136.4 0.14 0.25 0.32 0.62
KHDDH638 203.8 208 4.2 0.02 0.11 0.12 0.24
and 273.4 817.4 544 0.12 0.34 0.40 0.79
including 360 364 4 0.12 0.28 0.34 0.67
including 422 525 103 0.16 0.32 0.40 0.78
including 541.1 588 46.9 0.12 0.27 0.33 0.65
including 600 815 215 0.15 0.52 0.60 1.17
including 634 697 63 0.23 0.92 1.03 2.02
including 645 673 28 0.32 1.45 1.61 3.15
including 711 723 12 0.19 0.44 0.54 1.05
including 736.5 747.8 11.3 0.16 0.66 0.74 1.45
KHDDH639 8 600.5 592.5 0.09 0.20 0.25 0.49
including 30 36 6 0.12 0.33 0.39 0.77
including 48 58.4 10.4 0.16 0.33 0.41 0.81
including 72.4 94 21.6 0.15 0.21 0.29 0.56
including 168 177.4 9.4 0.11 0.24 0.30 0.58
including 195.7 304 108.3 0.13 0.29 0.36 0.71
including 314.4 354 39.6 0.10 0.23 0.29 0.56
including 480.7 487.2 6.5 0.13 0.25 0.32 0.62
including 497 511 14 0.14 0.25 0.33 0.64
including 558 599 41 0.12 0.26 0.32 0.62
KHDDH645 75 79 4 0.09 0.06 0.11 0.21
and 153.8 171 17.2 0.04 0.09 0.11 0.21
and 180.6 279 98.4 0.05 0.16 0.19 0.37
and 313 715.6 402.6 0.14 0.32 0.40 0.77
including 337 580 243 0.15 0.32 0.40 0.78
including 512 536 24 0.21 0.57 0.68 1.33
including 592 658 66 0.19 0.45 0.55 1.07
including 609 615.1 6.1 0.26 0.53 0.67 1.31
including 625 658 33 0.23 0.54 0.66 1.28
including 668.3 706 37.7 0.14 0.37 0.44 0.86
including 668.3 682 13.7 0.24 0.54 0.66 1.29
Assays pending
KHDDH647 l5 21 16 0.18 0.05 0.15 0.28
and 94 104 10 0.11 0.07 0.13 0.25
and 142 164 22 0.08 0.07 0.11 0.22
and 174 211 37 0.18 0.15 0.24 0.46
including 184 211 27 0.20 0.16 0.26 0.52
and 258 367 109 0.12 0.25 0.31 0.61
including 258 278 20 0.23 0.43 0.55 1.07
including 258 274 16 0.24 0.47 0.59 1.16
including 290 304 14 0.12 0.21 0.28 0.54
including 317 332 15 0.12 0.33 0.39 0.76
including 349 363 14 0.15 0.25 0.33 0.65
and 381 389 8 0.04 0.20 0.22 0.44
and 403 409 6 0.07 0.16 0.20 0.38
and 423 435 12 0.09 0.12 0.17 0.33
and 467 560 93 0.23 0.12 0.23 0.46
including 471 485.7 14.7 0.19 0.18 0.28 0.55
including 534 546 12 1.04 0.17 0.70 1.38
KHDDH649 Assays pending
KHDDH650 Assays pending
KHDDH651 Assays pending
KHDDH652 Assays pending
KHDDH653 Assays pending
KHDDH654 Assays pending
KHDDH655 Assays pending
KHDDH656 Assays pending
KHDDH657 Assays pending
KHDDH658 Assays pending
KHDDH659 Assays pending
KHDDH660 Assays pending
KHDDH661 Assays pending
KHDDH662 Assays pending
KHDDH663 Assays pending
KHDDH664 Assays pending
KHDDH665 Assays pending
KHDDH666 Assays pending
KHDDH667 Assays pending
KHDDH668 Assays pending
KHDDH669 Assays pending
KHDDH670 Assays pending
Competent person statement
The information in this announcement that relates to mineral resources is based on information compiled by 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 mineralization and type of deposit under consideration and to the activity he is undertaking to qualify as the qualified person as defined in the Canadian Institute of Mining 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, quality assurance/quality control 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 mineralization 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.
The company is not aware of any new, material information or data that are 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 is equal to Cu plus Au multiplied by 0.60049 multiplied by 0.86667.
Where Cu -- copper grade (per cent); Au -- gold grade (g/t); 0.60049 -- conversion factor (gold to copper); 0.86667 -- relative recovery of gold to copper (86.67 per cent).
The copper equivalent formula was based on the following parameters (prices are in U.S. dollars): copper price $3.40 per pound; gold price $1,400 per ounce; copper recovery 90 per cent; gold recovery 78 per cent; relative recovery of gold to copper is equal to 78 per cent divided by 90 per cent is equal to 86.67 per cent.
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