Further higher-grade infill drilling results at Stockwork Hill

 | Source: Xanadu Mines Ltd. Xanadu Mines Ltd.

TORONTO, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the Company) and its joint venture partner Zijin Mining Group Co., Ltd. (Zijin) are pleased to announce delivery of further higher-grade drill results during Phase One infill drilling at the Kharmagtai Copper and Gold Project, in preparation for the Prefeasibility Study (PFS).

Highlights

  • New infill drilling conducted in preparation for the PFS has returned strong higher-grade results from the Stockwork Hill deposit. Best downhole intersects include:
    • KHDDH649 – 424m @ 0.36% eCu (0.26% Cu & 0.21g/t Au) from 126m
      Including 72.2m @ 0.72% eCu (0.41% Cu & 0.60g/t Au) from 126m
      & 30.2m @ 0.89% eCu (0.50% Cu & 0.76g/t Au) from 168m
      & 6m @ 0.96% eCu (0.86% Cu and 0.19g/t Au) from 348m
      & 18m @ 0.66% eCu (0.54% Cu and 0.23g/t Au) from 466m
    • KHDDH650 – 131m @ 0.70% eCu (0.35% Cu & 0.67g/t Au) from 6m
      Including 76m @ 0.96% eCu (0.45% Cu & 1.00g/t Au) from 26m
      Including 38.5m @ 1.24% Cu (0.51% Cu & 1.44g/t Au) from 58m
      & 29m @ 1.00% eCu (0.92% Cu & 0.14g/t Au) from 185m
      & 41.7m @ 0.94% eCu (0.53% Cu & 0.81g/t Au) from 347m
    • KHDDH660 – 421.25m @ 0.48% eCu (0.33% Cu & 0.28 Au) from 152.75m
      Including 105m @ 0.84% eCu (0.47% Cu & 0.72g/t Au) from 168m
      Including 62m @ 1.05% eCu (0.56% Cu & 0.97g/t Au) from 196.75m
    • KHDDH653 – 6.2m @ 2.08% eCu (1.42% Cu & 1.31g/t Au) from 183.8m
      And 14m @ 0.83% eCu (0.15% Cu & 1.32g/t Au) from 202m
    • KHDDH655 – 370m @ 0.55% eCu (0.41% Cu & 0.28g/t Au ) from 236m
      Including 106m @ 0.80% eCu (0.56% Cu & 0.48g/t Au) from 386m
      & 46m @ 0.85% eCu (0.69% Cu & 0.32g/t Au) from 544m
      Including 12m @ 1.35% eCu (1.00% Cu & 0.69g/t Au) from 578m
  • Completed Phase 1 drilling has defined and expanded the volume of higher-grade mineralisation within the Stockwork pit, indicating both grade uplift and resource expansion potential.
  • Building on recent infill drilling success1,2, these newly identified higher-grade zones are expected to enhance the 2021 Mineral Resource Estimate (MRE), currently an Inferred and Indicated Resource of 1.1Bt containing 3Mt Cu and 8Moz Au (1.98Mt eCu Indicated, 2.33Mt eCu Inferred)3.
  • Interim MRE update to be completed early 4Q CY2023, in preparation for Final PFS MRE during 4Q CY2023, which will include results from Phase 2 (now underway).
  • Growth-focused discovery exploration drilling at Kharmagtai also continues with 2 diamond rigs; we expect to provide further shallow results, plus first ever deep drilling results during 3Q CY2023.

Xanadu’s Executive Chairman and Managing Director, Mr Colin Moorhead, said “Our infill drilling program to support the PFS has progressed safely and efficiently and is continuing to demonstrate results in line with or materially better than the 2021 MRE. Results from this Phase One have continued to show upside to the existing Resource that formed the basis for the 2022 PEA and Scoping Study4. Pleasingly, we’ve intersected new higher grade zones at Stockwork Hill within the existing Resource boundary, which supports the potential to expand and increase the near-surface high-grade tonnes; a significant value-driver for the open-pit project going forward. Hole KHDDH649 is extremely encouraging, intersecting a high-grade steeply dipping tourmaline breccia, adding at least 120 m vertical extension of known higher grade zones. Not only does it highlight potential for significant grade boosts relative to the existing MRE, but also has dragged high-grade mineralisation closer to surface.

Phase Two drilling, currently underway, is focussed on Golden Eagle, Zephyr and West White Hill, and will also address any outstanding issues arising from Phase One. Phase 2 results will then be combined with the Interim MRE to produce a final PFS Mineral Resource update in Q4 CY2023.

Infill Drilling Results to Date

The Phase One infill drilling program for Stockwork Hill, White Hill and Copper Hill is complete. All infill drilling assay results have now been returned for Stockwork Hill. These results demonstrate that the high-grade tourmaline breccia body within the Resource is larger than previous modelling predicted (Figures 1; Appendix 1). Several holes encountered materially better grade relative to Resource grade. Significant drill intersections from Stockwork Hill, include:

KHDDH649 was drilled to expand upon the recently identified extensions of the tourmaline breccia zone (see ASX/TSX News Release dated 7th June 2023). KHDDH649 intersected a significant interval of 424m @ 0.36% eCu (0.26% Cu & 0.21g/t Au) from 126m, which:

  1. broadened the shallow, gold-rich Southern Stockwork Zone relative to the 2021 MRE, with 72.2m @ 0.72% eCu (0.41% Cu and 0.60g/t Au) from 126m, and
  2. expanded the higher-grade tourmaline breccia zone, with 6m @ 0.96% eCu (0.86% Cu and 0.19g/t Au) from 348m and 18m @ 0.66% eCu (0.54% Cu and 0.23g/t Au) from 466m (Figure 2).
Hole IDProspectFrom (m)To (m)Interval (m)Au (g/t)Cu (%)eCu (%)eAu (g/t)
KHDDH649Stockwork Hill2638120.070.080.110.22
and 5060100.080.090.130.26
and 10811240.140.110.180.36
and 1265504240.210.260.360.71
including 126198.272.20.600.410.721.40
including 134.315419.70.830.510.931.82
including 168198.230.20.760.500.891.73
including 186198.212.21.100.691.252.44
including 22022660.610.310.621.22
including 276296200.280.300.450.88
including 318382640.150.410.480.94
including 348378300.160.510.591.16
including 34835460.190.860.961.88
including 396452560.120.270.330.64
including 40040440.160.620.701.37
including 466484180.230.540.661.29
including 470484140.250.600.731.42
including 504514100.130.180.240.47

KHDDH650 was also drilled to expand upon the recently identified extensions of the tourmaline breccia zone. The results from KHDDH650 have broadened the shallow, gold-rich Southern Stockwork Zone, delineating:

  1. An area of high-grade tourmaline breccia with 29m @ 1.00% eCu (0.92% Cu and 0.14g/t Au) from 185m, where the previous MRE reported 0.1% eCu, and
  2. A deeper zone of gold-rich stockwork mineralisation with 41.7m @ 0.94% eCu (0.53% Cu and 0.81g/t Au) from 347m, where the previous MRE estimated 0.2 to 0.3% eCu (Figure 3).
Hole IDProspectFrom (m)To (m)Interval (m)Au (g/t)Cu (%)eCu (%)eAu (g/t)
KHDDH650Stockwork Hill62822760.360.330.521.01
including 61371310.670.350.701.36
including 26102761.000.450.961.88
including 5896.538.51.440.511.242.43
including 16116980.110.290.350.68
including 185214290.140.921.001.95
including 187207.320.30.161.161.242.43
including 187205180.171.231.312.57
including 264282180.040.360.380.74
and 2924191270.330.280.460.89
including 297320.6523.650.160.330.410.80
including 31531940.360.720.901.76
including 347388.741.70.810.530.941.85
including 349388.739.70.840.540.971.91
including 353386330.890.551.011.97
and 437446.299.290.100.060.120.23


KHDDH660 was also drilled to expand upon the recently identified extensions of the tourmaline breccia zone. The results from KHDDH660 have broadened the shallow, gold-rich Southern Stockwork Zone, delineating an area of high-grade tourmaline breccia with 62.25m @ 1.05% eCu (0.56% Cu & 0.97g/t Au) from 196.75m, where the previous MRE reported 0.2 to 0.3% eCu (Figure 3).

Hole IDProspectFrom (m)To (m)Interval (m)Au (g/t)Cu (%)eCu (%)eAu (g/t)
KHDDH660Stockwork Hill91560.210.110.220.43
and 76111350.100.080.140.27
and 152.75574421.250.280.330.480.93
including 1682731050.720.470.841.63
including 172185130.510.500.761.48
including 196.7525962.250.970.561.052.06
including 211249381.170.641.242.43
including 2855272420.160.360.440.87
including 29529940.300.620.771.50
including 315327120.130.270.330.65
including 349393440.130.720.791.54
including 38739140.162.642.725.31
including 40341180.150.870.951.85
including 447472250.310.330.490.96
including 49149760.450.500.731.44
and 55956340.140.070.140.27


KHDDH653 was drilled on the far eastern edge of the 2022 PEA designed open pit. This hole returned a series of narrow high-grade gold and copper intercepts showing mineralisation remains open along from the current MRE:

  1. 6.2m @ 2.08% eCu (1.42% Cu and 1.31g/t Au) from 183.8m, and
  2. 14m @ 0.83% eCu (0.15% Cu and 1.32g/t Au) from 202m (Figure 4).
Hole IDProspectFrom (m)To (m)Interval (m)Au (g/t)Cu (%)eCu (%)eAu (g/t)
KHDDH653Stockwork Hill13414280.120.060.120.23
and 15616040.040.090.110.22
and 183.81906.21.311.422.084.08
including 183.8186.32.52.623.114.458.70
and 202216141.320.150.831.62
including 210.3214.84.53.910.362.364.61
and 26927560.230.020.140.27


KHDDH655 was drilled to the east of the tourmaline breccia zone, and successfully extended this zone, delivering:

  1. broad intercept of high-grade tourmaline breccia with 106m @ 0.80% eCu (0.56% Cu and 0.48g/t Au) from 386m, and
  2. importantly a much deeper zone of high-grade tourmaline breccia extending directly below the planned pit, with 46m @ 0.85% eCu (0.69% Cu and 0.32g/t Au) from 544m, including 12m @ 1.35% eCu (1% Cu and 0.69g/t Au) from 578m (Figure 5).
Hole IDProspectFrom (m)To (m)Interval (m)Au (g/t)Cu (%)eCu (%)eAu (g/t)
KHDDH655Stockwork Hill727860.130.060.130.25
and 178210320.040.080.110.21
and 2366063700.280.410.551.08
including 2425903480.290.430.581.13
including 25025440.700.300.661.29
including 29630040.160.630.711.38
including 34635040.410.440.651.27
including 364376120.650.520.851.66
including 3864921060.480.560.801.57
including 39239640.581.151.442.82
including 426450240.710.801.162.27
including 522534120.100.450.500.97
including 544590460.320.690.851.66
including 54855460.231.091.212.36
including 578590120.691.001.352.63
and 616650340.100.160.210.41
including 64264860.240.340.460.91
and 672696240.140.130.210.41
including 67868240.170.260.350.68


Kharmagtai copper-gold district showing currently defined mineral deposits and planned Phase One Resource infill drill holes.

Figure 1: Kharmagtai copper-gold district showing currently defined mineral deposits and planned Phase One Resource infill drill holes.

Cross section through the Stockwork Hill deposit showing drill hole KHDDH649.

Figure 2: Cross section through the Stockwork Hill deposit showing drill hole KHDDH649.

Cross section through the Stockwork Hill deposit showing drill hole KHDDH650 and KHDDH660.


Figure 3: Cross section through the Stockwork Hill deposit showing drill hole KHDDH650 and KHDDH660.

Cross section through the Stockwork Hill deposit showing drill hole KHDDH653.


Figure 4: Cross section through the Stockwork Hill deposit showing drill hole KHDDH653.

Cross section through the Stockwork Hill deposit showing drill hole KHDDH655.

Figure 5: Cross section through the Stockwork Hill deposit showing drill hole KHDDH655.

Extension of Higher Grade Zones at Stockwork Hill Continues

Significantly, drill hole KHDDH649, drilled into the central portion of Stockwork Hill, has encountered higher-grade zones of tourmaline breccia mineralisation (Figure 2), adding vertical extension to known higher grade zones. Principally, drilling intercepted a highly encouraging zone grading 30.2m @ 0.50% Cu and 0.76g/t Au (0.89% eCu) from 168m, significantly exceeding the 2021 MRE block model prediction for 0.3% eCu mineralisation. This intercept is approximately 120m above the closest high-grade tourmaline breccia drilled in this area, highlighting potential for significant grade boosts relative to the existing MRE. Additional drilling is now planned to test for further extensions of these higher-grade zones and aimed for inclusion in the upcoming MRE update.

Next steps

Four diamond drill rigs are currently focussed on Kharmagtai infill drilling, with overarching objective to target areas with potential for future Mineral Resource to Ore Reserve conversion.

The Phase One infill drilling program for Stockwork Hill, White Hill and Copper Hill is complete, with 80 holes completed for a total 33,212m. All results from infill drilling have now been returned for Stockwork Hill. Remaining assay results from White Hill and Copper Hill are expected late August. These results are being interpreted and detailed 3D geological models being updated to provide the basis of an Interim Mineral Resource update. Objective of the Interim MRE is to identify any additional drilling requirements, with the aim of maximising conversion of Inferred to Indicated Resource category, and subsequently maximising conversion to a maiden Ore Reserve, to underpin the PFS.

Phase Two infill drilling is currently underway at Golden Eagle, Zephyr and White Hill West; it is expected to complete mid-August 2023. These results will then be combined with the Interim MRE, with a final PFS Mineral Resource update reported Q4 CY2023.

About the Infill Drilling Program

Kharmagtai currently has an Inferred and Indicated Resource of 1.1Bt containing 3Mt Cu and 8Moz Au . As part of the Kharmagtai PFS, the aim of the infill drilling is to target an upgrade off all currently Inferred material to Indicated Resource classification, enabling a maiden, JORC compliant Ore Reserve to be reported. Additionaly, 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 (Figure 1), including investigation of near-mine, higher-grade extensions.

About Xanadu Mines

Xanadu is an ASX and TSX listed Exploration company operating in Mongolia. We give 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 who jointly control a globally significant copper-gold deposit in our 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% of the Kharmagtai project.

For further information on Xanadu, please visit: www.xanadumines.com or contact:

Colin Moorhead
Executive Chairman & Managing Director
E: colin.moorhead@xanadumines.com
P: +61 2 8280 7497

This Announcement was authorised for release by Xanadu’s Board of Directors.

Appendix 1: Drilling Results

Note that true widths will generally be narrower than those reported. See disclosure in JORC explanatory statement attached.

Table 1: Drill hole collar

Hole IDProspectEastNorthRLAzimuth (°)Inc (°)Depth (m)
KHDDH607Stockwork Hill592376487757812920-60600.1
KHDDH608Stockwork Hill592310487784012910-55400.0
KHDDH609Stockwork Hill59227048779131293270-60410.0
KHDDH610Stockwork Hill592250487765412920-60325.0
KHDDH611Stockwork Hill59218948779191291180-70275.0
KHDDH612Stockwork Hill592126487805112910-60100.0
KHDDH613Stockwork Hill592800487774212830-90573.6
KHDDH614Stockwork Hill592126487784612950-60175.0
KHDDH615Stockwork Hill592126487775512950-60200.0
KHDDH621Stockwork Hill592900487790112820-70420.7
KHDDH628Stockwork Hill592250487810212890-60125.0
KHDDH629Stockwork Hill592126487795012910-60125.0
KHDDH647Stockwork Hill592432487769612890-60564.5
KHDDH649Stockwork Hill592535487768612870-60560.0
KHDDH650Stockwork Hill592533487777712870-60460.1
KHDDH652Stockwork Hill593000487767012840-60350.0
KHDDH653Stockwork Hill593063487763012840-60275.0
KHDDH654Stockwork Hill592854487759912850-60522.5
KHDDH655Stockwork Hill592647487760312880-60735.0
KHDDH660Stockwork Hill59253548776861287357-60576.6


Table 2: Significant drill results

Hole IDProspectFrom (m)To (m)Interval (m)Au (g/t)Cu (%)eCu (%)eAu (g/t)
KHDDH607Stockwork Hill919100.030.130.150.30
and 10611260.060.100.130.26
and 121.714927.30.070.100.140.27
and 159193340.040.090.110.22
and 214.22227.80.100.060.120.23
and 23423840.090.070.110.22
and 252284320.070.070.100.20
and 296307110.060.090.120.23
and 330.85434.9104.050.080.270.310.61
including 411433220.120.951.011.98
including 426.94314.10.243.823.947.71
and 44544940.140.080.140.28
and 492.9501.38.40.350.180.350.69
including 492.94974.10.530.260.531.04
and 512568560.110.180.230.46
including 524542180.110.250.300.59
and 578586.28.20.040.140.160.32
KHDDH608Stockwork Hill0.35112.5112.150.270.210.350.68
including 59112.553.50.490.310.561.09
including 99110.211.21.260.561.212.36
and 129.714818.30.130.170.230.46
including 129.7135.876.170.290.310.460.89
and 1662701040.120.130.190.38
including 22423060.280.300.440.86
and 2824001180.070.130.160.32
including 31832240.110.270.320.62
KHDDH609Stockwork Hill101880.070.070.110.21
and 283222940.080.100.140.27
including 818980.060.210.240.46
including 207237300.180.150.240.46
and 334350160.320.080.240.48
including 336348120.390.080.280.54
and 378394160.050.050.080.16
KHDDH610Stockwork Hill3.54642.50.060.100.130.25
and 5588330.080.110.150.29
and 20421280.070.070.100.20
and 294325310.080.100.130.26
KHDDH611Stockwork Hill31151120.100.090.140.28
and 125137120.130.060.120.24
and 171.8521442.150.070.090.120.23
and 255275200.040.110.130.26
KHDDH612Stockwork Hill898900.100.130.180.36
including 5868100.140.300.370.73
KHDDH613Stockwork Hill172580.190.120.220.43
and 39111.3572.350.080.130.170.34
including 70.987.816.90.180.200.290.57
including 97.61068.40.140.260.330.64
and 121495.6374.60.250.260.400.77
including 14114980.140.180.250.49
including 159180.621.60.250.310.440.86
including 1994712720.300.310.460.90
including 237285480.470.450.691.36
including 409419100.570.560.851.66
including 40941340.800.801.212.37
including 441451101.140.370.961.87
including 44345181.250.381.021.99
and 506548420.470.410.661.28
including 507.654840.40.480.420.671.31
including 510544340.530.450.721.41
including 54054441.421.292.013.94
KHDDH614Stockwork Hill2.853936.150.090.090.140.27
and 138174360.080.100.140.28
KHDDH615Stockwork Hill2.41613.60.080.060.100.20
and 28173.8145.80.150.130.210.40
including 4668220.300.180.330.65
including 84.110217.90.220.210.320.63
KHDDH621Stockwork Hill202214120.070.030.070.13
KHDDH628Stockwork Hill1022120.670.060.400.79
including 101880.930.070.551.07
and 3250180.150.030.100.20
KHDDH629Stockwork Hill3.3125121.70.070.140.170.34
including 3.3139.70.180.140.240.47
including 495340.160.440.511.01
including 111121100.090.290.340.66
KHDDH647Stockwork Hill521160.180.050.150.28
and 94104100.110.070.130.25
and 142164220.080.070.110.22
and 174211370.180.150.240.46
including 184211270.200.160.260.52
and 2583671090.120.250.310.61
including 258278200.230.430.551.07
including 258274160.240.470.591.16
including 290304140.120.210.280.54
including 317332150.120.330.390.76
including 349363140.150.250.330.65
and 38138980.040.200.220.44
and 40340960.070.160.200.38
and 423435120.090.120.170.33
and 467560930.230.120.230.46
including 471485.714.70.190.180.280.55
including 534546121.040.170.701.38
KHDDH649Stockwork Hill2638120.070.080.110.22
and 5060100.080.090.130.26
and 10811240.140.110.180.36
and 1265504240.210.260.360.71
including 126198.272.20.600.410.721.40
including 134.315419.70.830.510.931.82
including 168198.230.20.760.500.891.73
including 186198.212.21.100.691.252.44
including 22022660.610.310.621.22
including 276296200.280.300.450.88
including 318382640.150.410.480.94
including 348378300.160.510.591.16
including 34835460.190.860.961.88
including 396452560.120.270.330.64
including 40040440.160.620.701.37
including 466484180.230.540.661.29
including 470484140.250.600.731.42
including 504514100.130.180.240.47
KHDDH650Stockwork Hill62822760.360.330.521.01
including 61371310.670.350.701.36
including 26102761.000.450.961.88
including 5896.538.51.440.511.242.43
including 16116980.110.290.350.68
including 185214290.140.921.001.95
including 187207.320.30.161.161.242.43
including 187205180.171.231.312.57
including 264282180.040.360.380.74
and 2924191270.330.280.460.89
including 297320.6523.650.160.330.410.80
including 31531940.360.720.901.76
including 347388.741.70.810.530.941.85
including 349388.739.70.840.540.971.91
including 353386330.890.551.011.97
and 437446.299.290.100.060.120.23
KHDDH652Stockwork Hill127.41324.60.640.130.460.89
and 194230360.130.100.160.32
including 19420280.260.110.250.48
and 256280240.250.120.250.48
and 298326280.290.070.210.42
KHDDH653Stockwork Hill13414280.120.060.120.23
and 15616040.040.090.110.22
and 183.81906.21.311.422.084.08
including 183.8186.32.52.623.114.458.70
and 202216141.320.150.831.62
including 210.3214.84.53.910.362.364.61
and 26927560.230.020.140.27
KHDDH654Stockwork Hill144158140.110.410.470.92
including 146158120.110.460.521.01
including 15415840.210.921.032.01
and 198218200.020.060.070.15
and 232242100.040.110.130.25
and 256501.1245.10.110.230.290.56
including 272279.37.30.270.140.280.56
including 299351520.130.280.350.68
including 361439780.100.290.340.66
including 36737140.200.961.062.06
including 455.247822.80.140.180.250.48
including 488501.113.10.080.270.310.60
KHDDH655Stockwork Hill727860.130.060.130.25
and 178210320.040.080.110.21
and 2366063700.280.410.551.08
including 2425903480.290.430.581.13
including 25025440.700.300.661.29
including 29630040.160.630.711.38
including 34635040.410.440.651.27
including 364376120.650.520.851.66
including 3864921060.480.560.801.57
including 39239640.581.151.442.82
including 426450240.710.801.162.27
including 522534120.100.450.500.97
including 544590460.320.690.851.66
including 54855460.231.091.212.36
including 578590120.691.001.352.63
and 616650340.100.160.210.41
including 64264860.240.340.460.91
and 672696240.140.130.210.41
including 67868240.170.260.350.68
and 724734100.050.100.120.24
KHDDH660Stockwork Hill91560.210.110.220.43
and 76111350.100.080.140.27
and 152.75574421.250.280.330.480.93
including 1682731050.720.470.841.63
including 172185130.510.500.761.48
including 196.7525962.250.970.561.052.06
including 211249381.170.641.242.43
including 2855272420.160.360.440.87
including 29529940.300.620.771.50
including 315327120.130.270.330.65
including 349393440.130.720.791.54
including 38739140.162.642.725.31
including 40341180.150.870.951.85
including 447472250.310.330.490.96
including 49149760.450.500.731.44
and 55956340.140.070.140.27


Appendix 2: Statements and Disclaimers

Competent Person Statement

The information in this announcement that relates to Mineral Resources is based on information compiled by Mr 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 mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as the Qualified Person as defined in the CIM 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, QA/QC 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 mineralisation 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 at:

https://www.xanadumines.com/site/investor-centre/asx-announcements

The Company is not aware of any new, material information or data that is not included in those market announcements.

Copper Equivalent Calculations

The copper equivalent (eCu) 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 (eCu) grade values were calculated using the formula: eCu = Cu + Au * 0.60049 * 0.86667.

Where Cu - copper grade (%); Au - gold grade (g/t); 0.60049 - conversion factor (gold to copper); 0.86667 - relative recovery of gold to copper (86.67%).

The copper equivalent formula was based on the following parameters (prices are in USD):   Copper price 3.4 $/lb; Gold price 1400 $/oz; Copper recovery 90%; Gold recovery 78%; Relative recovery of gold to copper = 78% / 90% = 86.67%.

Forward-Looking Statements

Certain statements contained in this Announcement, including information as to the future financial or operating performance of Xanadu and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward-looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Xanadu, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.

Xanadu disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after the date of this Announcement or to reflect the occurrence of unanticipated events, other than required by the Corporations Act 2001 (Cth) and the Listing Rules of the Australian Securities Exchange (ASX) and Toronto Stock Exchange (TSX). The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.

All ‘forward‐looking statements’ made in this Announcement are qualified by the foregoing cautionary statements. Investors are cautioned that ‘forward‐looking statements’ are not guarantee of future performance and accordingly investors are cautioned not to put undue reliance on ‘forward‐looking statements’ due to the inherent uncertainty therein.

For further information please visit the Xanadu Mines’ Website at www.xanadumines.com.

Appendix 3: Kharmagtai Table 1 (JORC 2012)

Set out below is Section 1 and Section 2 of Table 1 under the JORC Code, 2012 Edition for the Kharmagtai project. Data provided by Xanadu. This Table 1 updates the JORC Table 1 disclosure dated 8 December 2021.

JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA

(Criteria in this section apply to all succeeding sections).

CriteriaCommentary
Sampling techniques
  • Representative ½ core samples were split from PQ, HQ & NQ diameter diamond drill core on site using rock saws, on a routine 2m sample interval that also honours lithological/intrusive contacts.
  • The orientation of the cut line is controlled using the core orientation line ensuring uniformity of core splitting wherever the core has been successfully oriented.
  • Sample intervals are defined and subsequently checked by geologists, and sample tags are attached (stapled) to the plastic core trays for every sample interval.
  • Reverse Circulation (RC) chip samples are ¼ splits from one meter (1m) intervals using a 75%:25% riffle splitter to obtain a 3kg sample
  • RC samples are uniform 2m samples formed from the combination of two ¼ split 1m samples.
Drilling techniques
  • The Mineral Resource Estimation has been based upon diamond drilling of PQ, HQ and NQ diameters with both standard and triple tube core recovery configurations, RC drilling and surface trenching with channel sampling.
  • All drill core drilled by Xanadu has been oriented using the “Reflex Ace” tool.
Drill sample recovery
  • Diamond drill core recoveries were assessed using the standard industry (best) practice which involves removing the core from core trays; reassembling multiple core runs in a v-rail; measuring core lengths with a tape measure, assessing recovery against core block depth measurements and recording any measured core loss for each core run.
  • Diamond core recoveries average 97% through mineralisation.
  • Overall, core quality is good, with minimal core loss. Where there is localised faulting and or fracturing core recoveries decrease, however, this is a very small percentage of the mineralised intersections.
  • RC recoveries are measured using whole weight of each 1m intercept measured before splitting
  • Analysis of recovery results vs grade shows no significant trends that might indicate sampling bias introduced by variable recovery in fault/fracture zones.
Logging
  • All drill core is geologically logged by well-trained geologists using a modified “Anaconda-style” logging system methodology. The Anaconda method of logging and mapping is specifically designed for porphyry Cu-Au mineral systems and is entirely appropriate to support Mineral Resource Estimation, mining and metallurgical studies.
  • Logging of lithology, alteration and mineralogy is intrinsically qualitative in nature. However, the logging is subsequently supported by 4 Acid ICP-MS (48 element) geochemistry and SWIR spectral mineralogy (facilitating semi-quantitative/calculated mineralogical, lithological and alteration classification) which is integrated with the logging to improve cross section interpretation and 3D geological model development.
  • Drill core is also systematically logged for both geotechnical features and geological structures. Where drill core has been successfully oriented, the orientation of structures and geotechnical features are also routinely measured.
  • Both wet and dry core photos are taken after core has been logged and marked-up but before drill core has been cut.
Sub-sampling techniques and
sample preparation
  • All drill core samples are ½ core splits from either PQ, HQ or NQ diameter cores. A routine 2m sample interval is used, but this is varied locally to honour lithological/intrusive contacts. The minimum allowed sample length is 30cm.
  • Core is appropriately split (onsite) using diamond core saws with the cut line routinely located relative to the core orientation line (where present) to provide consistency of sample split selection.
  • The diamond saws are regularly flushed with water to minimize potential contamination.
  • A field duplicate ¼ core sample is collected every 30th sample to ensure the “representivity of the in-situ material collected”. The performance of these field duplicates is routinely analysed as part of Xanadu’s sample QC process.
  • Routine sample preparation and analyses of DDH samples were carried out by ALS Mongolia LLC (ALS Mongolia), who operates an independent sample preparation and analytical laboratory in Ulaanbaatar.
  • All samples were prepared to meet standard quality control procedures as follows: Crushed to 75% passing 2mm, split to 1kg, pulverised to 85% passing 200 mesh (75 microns) and split to 150g sample pulp.
  • ALS Mongolia Geochemistry labs quality management system is certified to ISO 9001:2008.
  • The sample support (sub-sample mass and comminution) is appropriate for the grainsize and Cu-Au distribution of the porphyry Cu-Au mineralization and associated host rocks.
Quality of assay data and
laboratory tests
  • All samples were routinely assayed by ALS Mongolia for gold
  • Au is determined using a 25g fire assay fusion, cupelled to obtain a bead, and digested with Aqua Regia, followed by an atomic absorption spectroscopy (AAS) finish, with a lower detection (LDL) of 0.01 ppm.
  • All samples were also submitted to ALS Mongolia for the 48-element package ME-ICP61 using a four-acid digest (considered to be an effective total digest for the elements relevant to the Mineral Resource Estimate (MRE)). Where copper is over-range (>1% Cu), it is analysed by a second analytical technique (Cu-OG62), which has a higher upper detection limit (UDL) of 5% copper.
  • Quality assurance has been managed by insertion of appropriate Standards (1:30 samples – suitable Ore Research Pty Ltd certified standards), Blanks (1:30 samples), Duplicates (1:30 samples – ¼ core duplicate) by XAM.
  • Assay results outside the optimal range for methods were re-analysed by appropriate methods.
  • Ore Research Pty Ltd certified copper and gold standards have been implemented as a part of QC procedures, as well as coarse and pulp blanks, and certified matrix matched copper-gold standards.
  • QC monitoring is an active and ongoing processes on batch by batch basis by which unacceptable results are re-assayed as soon as practicable.
  • Prior to 2014: Cu, Ag, Pb, Zn, As and Mo were routinely determined using a three-acid-digestion of a 0.3g sub-sample followed by an AAS finish (AAS21R) at SGS Mongolia. Samples were digested with nitric, hydrochloric and perchloric acids to dryness before leaching with hydrochloric acid to dissolve soluble salts and made to 15ml volume with distilled water. The LDL for copper using this technique was 2ppm. Where copper was over-range (>1% Cu), it was analysed by a second analytical technique (AAS22S), which has a higher upper detection limit (UDL) of 5% copper. Gold analysis method was essentially unchanged.
Verification of sampling and
assaying
  • All assay data QA/QC is checked prior to loading into XAM’s Geobank data base.
  • The data is managed by XAM geologists.
  • The data base and geological interpretation is managed by XAM.
  • Check assays are submitted to an umpire lab (SGS Mongolia) for duplicate analysis.
  • No twinned drill holes exist.
  • There have been no adjustments to any of the assay data.
Location of data points
  • Diamond drill holes have been surveyed with a differential global positioning system (DGPS) to within 10cm accuracy.
  • The grid system used for the project is UTM WGS-84 Zone 48N
  • Historically, Eastman Kodak and Flexit electronic multi-shot downhole survey tools have been used at Kharmagtai to collect down hole azimuth and inclination information for the majority of the diamond drill holes. Single shots were typically taken every 30m to 50m during the drilling process, and a multi-shot survey with readings every 3-5m are conducted at the completion of the drill hole. As these tools rely on the earth’s magnetic field to measure azimuth, there is some localised interference/inaccuracy introduced by the presence of magnetite in some parts of the Kharmagtai mineral system. The extent of this interference cannot be quantified on a reading-by-reading basis.
  • More recently (since September 2017), a north-seeking gyro has been employed by the drilling crews on site (rented and operated by the drilling contractor), providing accurate downhole orientation measurements unaffected by magnetic effects. Xanadu have a permanent calibration station setup for the gyro tool, which is routinely calibrated every 2 weeks (calibration records are maintained and were sighted)
  • The project Digital Terrain Model (DTM) is based on 1m contours from satellite imagery with an accuracy of ±0.1 m.
Data spacing and distribution
  • Holes spacings range from <50m spacings within the core of mineralization to +500m spacings for exploration drilling. Hole spacings can be determined using the sections and drill plans provided.
  • Holes range from vertical to an inclination of -60 degrees depending on the attitude of the target and the drilling method.
  • The data spacing and distribution is sufficient to establish anomalism and targeting for porphyry Cu-Au, tourmaline breccia and epithermal target types.
  • Holes have been drilled to a maximum of 1,304m vertical depth.
  • The data spacing and distribution is sufficient to establish geological and grade continuity, and to support the Mineral Resource classification.
Orientation of data in relation to geological structure
  • Drilling is conducted in a predominantly regular grid to allow unbiased interpretation and targeting.
  • Scissor drilling, as well as some vertical and oblique drilling, has been used in key mineralised zones to achieve unbiased sampling of interpreted structures and mineralised zones, and in particular to assist in constraining the geometry of the mineralised hydrothermal tourmaline-sulphide breccia domains.
Sample security
  • Samples are delivered from the drill rig to the core shed twice daily and are never left unattended at the rig.
  • Samples are dispatched from site in locked boxes transported on XAM company vehicles to ALS lab in Ulaanbaatar.
  • Sample shipment receipt is signed off at the Laboratory with additional email confirmation of receipt.
  • Samples are then stored at the lab and returned to a locked storage site.
Audits or reviews
  • Internal audits of sampling techniques and data management are undertaken on a regular basis, to ensure industry best practice is employed at all times.
  • External reviews and audits have been conducted by the following groups:
  • 2012: AMC Consultants Pty Ltd. was engaged to conduct an Independent Technical Report which reviewed drilling and sampling procedures. It was concluded that sampling and data record was to an appropriate standard.
  • 2013: Mining Associates Ltd. was engaged to conduct an Independent Technical Report to review drilling, sampling techniques and QAQC. Methods were found to conform to international best practice.
  • 2018: CSA Global reviewed the entire drilling, logging, sampling, sample shipping and laboratory processes during the competent persons site visit for the 2018 MRE and found the systems and adherence to protocols to be to an appropriate standard.


JORC TABLE 1 - SECTION 2 - REPORTING OF EXPLORATION RESULTS

(Criteria in this section apply to all succeeding sections).

CriteriaCommentary
Mineral
tenement
and land
tenure
status
  • The Project comprises 2 Mining Licences (MV-17129A Oyut Ulaan and (MV-17387A Kharmagtai):
    • Xanadu now owns 90% of Vantage LLC, the 100% owner of the Oyut Ulaan mining licence.
    • The Kharmagtai mining license MV-17387A is 100% owned by Oyut Ulaan LLC. Xanadu has an 85% interest in Mongol Metals LLC, which has 90% interest in Oyut Ulaan LLC. The remaining 10% in Oyut Ulaan LLC is owned by Quincunx (BVI) Ltd (“Quincunx”).
  • The Mongolian Minerals Law (2006) and Mongolian Land Law (2002) govern exploration, mining and land use rights for the project.
Exploration
done by
other
parties
  • Previous exploration at Kharmagtai was conducted by Quincunx Ltd, Ivanhoe Mines Ltd and Turquoise Hill Resources Ltd including extensive drilling, surface geochemistry, geophysics, mapping.
  • Previous exploration at Red Mountain (Oyut Ulaan) was conducted by Ivanhoe Mines.
Geology
  • The mineralisation is characterised as porphyry copper-gold type.
  • Porphyry copper-gold deposits are formed from magmatic hydrothermal fluids typically associated with felsic intrusive stocks that have deposited metals as sulphides both within the intrusive and the intruded host rocks. Quartz stockwork veining is typically associated with sulphides occurring both within the quartz veinlets and disseminated thought out the wall rock. Porphyry deposits are typically large tonnage deposits ranging from low to high grade and are generally mined by large scale open pit or underground bulk mining methods. The deposits at Kharmagtai are atypical in that they are associated with intermediate intrusions of diorite to quartz diorite composition; however, the deposits are in terms of contained gold significant, and similar gold-rich porphyry deposits.
Drill hole
Information
  • Diamond drill holes are the principal source of geological and grade data for the Project.
  • See figures in this ASX/TSX Announcement.
Data
Aggregation methods
  • The CSAMT data was converted into 2D line data using the Zonge CSAMT processing software and then converted into 3D space using a UBC inversion process. Inversion fit was acceptable, and error was generally low.
  • A nominal cut-off of 0.1% eCu is used in copper dominant systems for identification of potentially significant intercepts for reporting purposes. Higher grade cut-offs are 0.3%, 0.6% and 1% eCu.
  • A nominal cut-off of 0.1g/t eAu is used in gold dominant systems like Golden Eagle for identification of potentially significant intercepts for reporting purposes. Higher grade cut-offs are 0.3g/t, 0.6g/t and 1g/t eAu.
  • Maximum contiguous dilution within each intercept is 9m for 0.1%, 0.3%, 0.6% and 1% eCu.
  • Most of the reported intercepts are shown in sufficient detail, including maxima and subintervals, to allow the reader to make an assessment of the balance of high and low grades in the intercept.
  • Informing samples have been composited to two metre lengths honouring the geological domains and adjusted where necessary to ensure that no residual sample lengths have been excluded (best fit).
The copper equivalent (eCu) 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. The copper equivalent calculation used is based off the eCu calculation defined by CSA Global in the 2018 Mineral Resource Upgrade.

Copper equivalent (eCu) grade values were calculated using the following formula:

eCu = Cu + Au * 0.62097 * 0.8235,

Gold Equivalent (eAu) grade values were calculated using the following formula:

eAu = Au + Cu / 0.62097 * 0.8235.

Where:

Cu - copper grade (%)

Au - gold grade (g/t)

0.62097 - conversion factor (gold to copper)

0.8235 - relative recovery of gold to copper (82.35%)

The copper equivalent formula was based on the following parameters (prices are in USD):
  • Copper price - 3.1 $/lb (or 6834 $/t)
  • Gold price        - 1320 $/oz
  • Copper recovery - 85%
  • Gold recovery - 70%
  • Relative recovery of gold to copper = 70% / 85% = 82.35%.
Relationship between
mineralisation
on widths
and intercept
lengths
  • Mineralised structures are variable in orientation, and therefore drill orientations have been adjusted from place to place in order to allow intersection angles as close as possible to true widths.
  • Exploration results have been reported as an interval with 'from' and 'to' stated in tables of significant economic intercepts. Tables clearly indicate that true widths will generally be narrower than those reported.
Diagrams
  • See figures in the body of this ASX/TSX Announcement.
Balanced
reporting
  • Resources have been reported at a range of cut-off grades, above a minimum suitable for open pit mining, and above a minimum suitable for underground mining.
Other
substantive
exploration
data
  • Extensive work in this area has been done and is reported separately.
Further
Work
  • The mineralisation is open at depth and along strike.
  • Current estimates are restricted to those expected to be reasonable for open pit mining. Limited drilling below this depth (-300m RLl) shows widths and grades potentially suitable for underground extraction.
  • Exploration on going.


JORC TABLE 1 - SECTION 3 - ESTIMATION AND REPORTING OF MINERAL RESOURCES

Mineral Resources are not reported so this is not applicable to this Announcement. Please refer to the Company’s ASX Announcement dated 8 December 2021 for Xanadu’s most recent reported Mineral Resource Estimate and applicable Table 1, Section 3.

JORC TABLE 1 - SECTION 4 - ESTIMATION AND REPORTING OF ORE RESERVES

Ore Reserves are not reported so this is not applicable to this Announcement.

_______________

1 ASX/TSX Announcement 7 June 2023 – New Higher-Grade Zones Found in Kharmagtai Infill Drilling
2 ASX/TSX Announcement 19 July 2023 – New High-Grade Copper-Gold Zone Emerging at White Hill
3 ASX/TSX Announcement 8 December 2021 – Kharmagtai Resource Grows to 1.1 billion Tonnes
4 ASX/TSX Announcement 6 April 2022 – Scoping Study – Kharmagtai Copper-Gold Project

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/7053b9c7-a947-4713-b4fd-2b010af7f23e

https://www.globenewswire.com/NewsRoom/AttachmentNg/b89f0ade-a402-4f4b-ab3a-68b3cb032da8

https://www.globenewswire.com/NewsRoom/AttachmentNg/da17621c-ab67-4180-ab27-c4f8e8ea3059

https://www.globenewswire.com/NewsRoom/AttachmentNg/af5eb9c4-b15c-46bd-891c-6e92539c8e7f

https://www.globenewswire.com/NewsRoom/AttachmentNg/a32b4cee-8612-4d2f-bbd9-2cb69175dec3


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