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New High-Grade Zone Discovered at Kharmagtai

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New High-Grade Zone Discovered at Kharmagtai






Xanadu Mines Ltd (ASX: XAM) (TSX: XAM) is pleased to report that diamond drill hole KHDDH526, located to the immediate east of the Stockwork Hill deposit on the Company’s Kharmagtai porphyry copper and gold project in the south Gobi region of Mongolia (Figures 1 and 2), has intersected a significant new zone of mineralisation outside the defined resources. This new discovery significantly increases the potential strike of the Stockwork Hill Deposit.




  • Drill hole KHDDH526 intersects a broad zone of high-grade mineralisation east of the Stockwork Hill resource
  • KHDDH526 intersects 117m @ 0.68% Cu and 0.58g/t Au from 555m

    including 62.8m @ 1.16% Cu and 1.04g/t Au from 607m

  • Geophysical signature of the mineralisation can be traced for over 1,000m east of Stockwork Hill resource

  • Drilling reinforces the potential of the Tourmaline Breccia unit to host high-grade mineralisation on a potentially large scale

  • These drilling results confirm Kharmagtai as one of the most promising copper-gold projects globally


Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “KHDDH526 represents a pivotal drill hole for Xanadu at our Kharmagtai project. We have always believed that the high-grade tourmaline breccia at Stockwork Hill should extend to the east, but previous drilling had been unable to locate the eastern extensions of the mineralisation. KHDDH526 now confirms that mineralisation certainly extends beyond Billy’s Basalt Shear and may potentially extend all the way to the Sandstorm prospect over 1km away. These outstanding results support Xanadu’s interpretations that the porphyry-breccia complex at Kharmagtai has the potential to be a significant copper-gold system with similarities to other very strongly mineralised tourmaline breccia deposits globally”.




Three drill holes have been completed at Stockwork Hill; all holes were designed to extend the known high-grade mineralisation.


KHDDH525 was planned to bring the recently discovered bornite zone at Stockwork Hill towards surface (refer to Xanadu’s ASX/TSX announcement dated 28 February 2019; Targets 1 and 2 in Figure 3). This hole has encountered a shallow zone of bornite at 193m which is encouraging. The main zone of mineralisation was encountered between 600m and 900m and assays are pending.


KHDDH526 was planned to extend the high-grade tourmaline breccia zone at Stockwork Hill to the east of Billy’s Basalt Shear, the previous limit to mineralisation (Target 3 in Figure 3, 4 and 5). Three key observations highlighted the potential for a significantly larger zone of tourmaline breccia at Stockwork Hill.


The first of these was that mineralisation appeared to be offset by Billy’s Basalt Shear, a medium scale structure against which previously drilled mineralisation abuts. Structural models suggested this fault had an offset of less than 100m and pointed to the tourmaline breccia south and east of previous drilling.


The second observation was that the tourmaline breccia correlates with a discrete zone of magnetic destruction. This corridor of magnetic destruction extends some 1,000m to the Sandstorm Prospect (Figure 4). 


Finally, previous shallow drilling between Stockwork Hill and Sandstorm had encountered zones of tourmaline breccia with sulphide mineralisation reminiscent of the top of the known body of tourmaline breccia at Stockwork Hill. The tourmaline breccia at Stockwork Hill is vertically zoned from shallow tourmaline-chlorite infill, to deeper tourmaline-pyrite infill and then into copper bearing tourmaline-chalcopyrite-pyrite infill. These shallow holes displayed the tourmaline-chlorite and tourmaline-pyrite zones with minor chalcopyrite (Figure 4) which suggests copper mineralisation should be below these intercepts.


Partial assays have been returned for KHDDH526;


KHDDH526 – 117m @ 0.68% Cu & 0.59/t Au (0.98% eCu) from 555m,

including 70.8m @ 1.04% Cu and 0.93g/t Au (1.52% eCu) from 599m,

and         62.8m @ 1.16% Cu and 1.04g/t Au (1.69% eCu) from 607m.


Drill hole KHDDH527 has been drilled on the south western margin of Stockwork Hill (aimed at Target 5 in Figure 3). This hole has encountered mixed zones of high vein density stockwork, andesite dykes and tourmaline breccia (Figure 6). Assays are pending.


Photos accompanying this announcement are available at:


Posted March 10, 2020

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