Two Diamond Drill Rigs Target High-Grade Bornite Zones at Kharmagtai

TORONTO, March 02, 2021 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or “the Company”) is pleased to update the market as it accelerates drilling to target the high-grade, gold-rich bornite mineralisation at Stockwork Hill, located on the Company’s Kharmagtai porphyry copper and gold project in the South Gobi region of Mongolia (Figures 1 and 2).

Highlights

• Two diamond drill rigs have commenced targeting high-grade bornite mineralisation at the Stockwork Hill deposit, following Xanadu’s most recent drilling which encountered the richest mineralisation to date (see ASX/TSX announcement dated February 15, 2021)
• Drilling is now underway to extend and test the structure, depth and scale of the high-grade bornite mineralisation
• The drill program is based on models of the high-grade Hugo Dummett deposit at Oyu Tolgoi and the Ridgeway deposit at Cadia
• Results of these holes will further inform Phase 2 of the Kharmagtai exploration program, targeting high-grade extensions and new discovery

Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “We have moved decisively to follow-up the exciting results from drill hole KHDDH559B, which encountered the highest grade mineralisation seen at Kharmagtai to date. These two drill holes underway have potential to expand the zone of high density bornite mineralisation at Kharmagtai, which would confirm that Kharmagtai has not only globally significant scale but also the large zones of high-grade characteristic of a Tier 1 copper-gold porphyry deposit. These holes will also help guide our Phase 2 program which will target additional high-grade extensions and new discoveries at depth.”

Drivers to Follow-Up KHDDH559B

KHDDH559B (see ASX/TSX announcement dated 15 February, 2021, and Figure 1) intersected the largest zone of bornite mineralisation drilled to date at Kharmagtai.

In porphyry systems, mineralisation is typically zoned from chalcopyrite on the outside of the system to bornite in the higher-grade core of the system. This is significant as bornite carries more copper and gold than chalcopyrite, and this recent hole demonstrates the potential for the Kharmagtai mineralised system to contain zones of significantly higher grades than previously seen.

The bornite mineralisation encountered in hole KHDDH559B has motivated the Company to focus on high priority targets at Stockwork Hill along the two kilometres of strike extension towards Zaraa.