Subscribe
Be the first with the news that moves the market- Xanadu Mines (TSX:XAM) has commenced on-ground exploration activities at the Red Mountain Joint Venture, in southern Mongolia
- The staged exploration program will collect baseline data in order to establish the necessary drill targets
- Several other drill targets have already been identified at the site, each with high-grade copper-gold mineralisation
- Xanadu Mines is currently developing the project in partnership with Japan Oil, Gas and Metals National Corporation
- Xanadu Mines (XAM) is currently steady at 3 cents per share, with a market cap of C$23.7 million
Xanadu Mines (TSX:XAM) has commenced on-ground exploration activities at its highly prospective Red Mountain Joint Venture.
Located within the Dornogovi Province of southern Mongolia, roughly 420 kilometres southeast of Ulaanbaatar, the project is held in partnership with the Japan Oil, Gas and Metals National Corporation (JOGMEC).
With a 30-year mining license, Red Mountain covers 57 square kilometres, featuring a cluster of outcropping mineralising porphyry intrusions.
Under the terms of the joint venture, JOGMEC may acquire a 51 per cent interest in Red Mountain by putting up appoximately C$10.15 million in exploration expenses over the next four years.
The staged exploration program has been designed to collect baseline data in order to establish necessary drilling targets.
Phase one will focus on background data, including geophysical, geochemical and geological assessments across the entire lease. This will be followed by detailed 3D modelling, which will determine a drill target plan.
Approximately 2,100 metres of diamond drilling has been planned to test the high-priority targets.
Phase two will involve the actual testing of the targets generated from the 3D modelling. It’s likely that this phase will take some time to complete, since each drill hole will be analysed independently.
Andrew Stewart, CEO of Xanadu Mines, said he is thrilled to begin the exploration program less than one month after signing the earn-in agreement with JOGMEC.
“Red Mountain offers a rare opportunity to access a large, under-explored porphyry district. In the coming months, we will deploy a systematic exploration program, including deep penetrating geophysics, that we expect will provide a new perspective on the mineral potential at Red Mountain district.
“A steady stream of new geological information will help advance and refine several large-scale drill targets ready for testing in Q3 in 2020,” he said.
Xanadu Mines (XAM) is currently steady and trading at 3 cents per share, as of 1:40pm EDT.
