Exploration Drilling Fast-Tracked at Kharmagtai

TORONTO, Aug. 31, 2020 (GLOBE NEWSWIRE) — Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu or the Company) is pleased to advise it has commenced an accelerated drilling program at its flagship Kharmagtai copper-gold project (Figures 1 and 2), as part of an exploration plan funded by its recent, successful equity placement.  The program increases diamond drill rigs from one to three on site and continues through the end of 2020.
HighlightsExploration drilling fast-tracked to target material growth in resource tonnes and grade at KharmagtaiApproximately 23,000 metres diamond drilling planned before the end of the yearThree diamond drill rigs now operating at KharmagtaiClear exploration strategy based on a robust geological modelStep-out drilling to target extensions to known high-grade mineralisationExtensional drilling to test all remaining shallow, high-priority drill targetsCopper Hill CSAMT geophysical survey has commenced with results expected by early AugustStrong financial position with ~$13 million* to pursue the Kharmagtai exploration strategyXanadu’s Chief Executive Officer, Dr Andrew Stewart, said “Our team is pleased to be accelerating drilling at Kharmagtai. The 23,000 metres of drilling to be completed in 2020 is targeted to open-up both the tonnage and high grade potential for this project. Our recent drilling results support interpretations that the porphyry-breccia complex at Kharmagtai has the potential to be a world class copper-gold system with similarities to other significant deposits globally. Xanadu is entering an exciting period of discovery and growth.”* includes $6.4M Tranche 2 placement subject to Shareholder approval at 1 October 2020 EGM.Exploration StrategyAs reported in recent announcements (see ASX/TSX announcement dated July 8, 2020), Xanadu has returned to a long-term strategy of exploring for large-scale copper-gold deposits across its tenements in Mongolia.  At Kharmagtai, this strategy seeks to build on the updated open-pit mineral resource and open pit scoping study (see ASX/TSX announcement dated April 11, 2019), which demonstrated a robust and economic open-pit starter project.Xanadu is now focused on expanding known high-grade zones of mineralisation and discovering new, previously undrilled zones of copper and gold, aiming to define Kharmagtai as a world-class copper and gold project.The first phase of this strategy is underway, designed to understand the scale of the mineralised system through extensional drilling with several large step-outs from known zones. This phase will map the mineral system by following broad geological/geochemical trends, allowing for more surgical drill targeting in the second phase.Geophysical ProgramA detailed geophysical program is underway (Figure 2) to provide a detailed 3D fault model from which known zones of high-grade mineralisation can be extended. A recent trial of Controlled Source Audio-Magnetotelluric (CSAMT) has recently been conducted over Copper Hill (Figure 3) with encouraging results. Based on these encouraging results, a larger CSAMT survey is currently underway, covering the mining lease. The results from this work will be used to develop extensional drill targets.Drill ProgramAn additional two diamond drill rigs have been added to an ongoing drill program at Kharmagtai taking the total to three diamond drill rigs drilling through to the end of the year.The first drill rig is focused on drilling the remaining 4 shallow highest-priority drill targets that are yet to be tested within the district. A second rig is currently drilling along strike from the Zaraa discovery. A third rig is following up on the high-grade bornite mineralisation below the Stockwork Hill deposit and extensional potential of the Copper Hill deposit (Figure 2).The high-grade bornite zone at Stockwork Hill remains open along strike and at depth. A drill program has been designed to extend this zone of high-grade mineralisation. Similarly, mineralisation at Copper Hill remains open at depth and the faulted offset of Copper Hill has yet to be discovered. The recent trial CSAMT survey has produced numerous extensional targets for follow up drilling.Recent Zaraa DrillingFinal drill results for the single diamond drill hole drilled at Zaraa and reported within the June Quarter report have been returned. Drill hole KHDDH529 has returned a +1,000m intercept of mineralisation.This drill hole was terminated in mineralization and this intercept is open at depth.The current 3D geological interpretations of Zaraa suggest mineralisation is hosted within a sub-vertical dyke like body starting around 250m depth and extending to well below 1,300m vertical depth (Figure 4). However, the existing drilling has only tested approximately 200m of strike of this body, where geophysical signatures suggest mineralisation may be open for over 1km of strike extent. Follow up drilling has been planned to begin testing the extent of Zaraa to the northeast and southwest.Response to COVID-19Currently, COVID-19 has had minimal impact on the Company’s exploration activities in Mongolia. All necessary health and safety precautions are being taken and the Company remains well-funded to continue operations throughout this period.About Xanadu MinesXanadu is an ASX and TSX listed Exploration company that discovers and defines globally significant porphyry copper-gold assets in Mongolia. We give investors exposure to large scale copper-gold discoveries and low cost inventory growth, and we create liquidity events for shareholders at peak value points in the mining life cycle. Xanadu maintains a portfolio of exploration projects and remains one of the few junior explorers on the ASX or TSX who control an emerging Tier 1 copper-gold deposit in our flagship Kharmagtai project. For information on Xanadu visit:  www.xanadumines.com.
Andrew Stewart
CEO                                                                  
Xanadu Mines Ltd                                              
Andrew.stewart@xanadumines.com
+61 409 819 922This Announcement was authorised for release by Xanadu’s Board of Directors.
Figures and TablesFIGURE 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8f37d897-3d45-44ae-a211-352c0353e5edFIGURE 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e7454b53-557a-4049-b01a-a73762677d83
FIGURE 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7d28f5a4-ccf1-4478-bb3e-16a4a76fcef8
FIGURE 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/518458b1-d6d6-4f02-b569-c3681e807332

Statements and Disclaimers
Mineral Resources and Ore Reserves Reporting RequirementsThe 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.Competent Person StatementThe 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.Copper Equivalent CalculationsThe 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 in the 2018 Mineral Resource Upgrade.Copper equivalent (eCu) grade values were calculated using the following formula:Forward-Looking StatementsCertain 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. 
Kharmagtai JORC 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 18 September 2017.
JORC Table 1 – Section 1 – Sampling Techniques and Data
JORC Table 1 – Section 2 – Reporting of Exploration Results