Xanadu Mines Ltd (
ASX: XAM, TSX: XAM)
(
Xanadu or the
Company) is
pleased to announce initial trenching results from the 100% owned
Red Mountain project located within the Dornogovi Province of
southern Mongolia, approximately 420km southeast of Ulaanbaatar and
70km west of the provincial centre of Sainshand.
Highlights
- Assays
returned for 1,170m of the 6,500m trenching program at Red
Mountain.
- Initial
focus on Target 33 (T33) returned a broad zone of
shallow gold mineralisation.
-
Significant intercepts include OUTR109 with 66m @ 0.37g/t Au from
26m,
- including
18m @ 0.81g/t Au from 50m,
- including
10m @ 1.23g/t Au from 58m.
- OUTR109
results, combined with historic trenching results, define a 350m x
80m zone of highly anomalous gold, including a higher-grade core
greater than 1g/t Au.
- Anomalous
gold zone remains open to the west and a future drill program will
test 50m below this zone in multiple sections.
- Trenching
continues to test additional targets for surface gold and copper
mineralisation across the 57m2 tenement.
Xanadu’s Executive Chairman & Managing Director,
Colin Moorhead said: “We are encouraged by this solid
start to the Red Mountain trenching program. Initial results from
T33 outline a zone of strongly anomalous gold (greater than 0.2g/t
Au) at surface that extends for 350m along strike and 80m wide, and
within this zone is a higher-grade core (greater than 1g/t Au). We
look forward to the remaining trenching assays, which will define
our future drill program for Red Mountain.
T33
Trenching
Assays have been returned at T33 for
approximately 1,170m of trenching over seven trenches, targeting an
area of high-grade gold identified in previous trenching and
drilling. Assay results returned broad zones of anomalous gold
(Table 1 and Figure 1),
associated with felsic intrusive and strong alteration.
When combined with previous work at T33
1,2, these new results expand upon the previous
broad, highly anomalous gold zone at surface to a current
interpretation of approximately 350m long and 80m wide, including a
higher-grade core greater than 1g/t Au. This anomalous gold zone
remains open to the west and will be investigated through a drill
program of stab holes designed to test approximately 50m below this
zone in multiple sections.
TABLE 1: Significant 2022
Trench Intercepts Red Mountain T33 (horizontal metres shown)
Trench ID |
From (m) |
Interval (m) |
Au (g/t) |
Cu (%) |
OUTR109 |
26 |
66 |
0.37 |
0.04 |
including |
50 |
32 |
0.60 |
0.04 |
including |
50 |
18 |
0.81 |
0.05 |
including |
58 |
10 |
1.23 |
0.09 |
and |
106 |
4 |
0.97 |
0.04 |
FIGURE 1: Red Mountain T33 trench
locations and current & historical assay
results.3, 4
https://www.globenewswire.com/NewsRoom/AttachmentNg/18cdce5e-764f-43d3-b051-3fa6900cf471
2022 Red Mountain Exploration
Program
Xanadu is undertaking a disciplined and
systematic exploration program, which includes:
-
Detailed geological work, 3D geophysical and geochemical
modelling;
-
Trenching to test strike extent and develop drill targets; and
-
Drill program focussed on shallow gold, silver and copper
targets.
This announcement reports trenching results from
the initial 1,170 horizontal metres of a planned 6,500 metre
program. The program is designed to test strike extent and develop
targets for follow-up diamond drilling program.
Surface trenching has proven to be a rapid and
economic target definition approach prior to diamond drilling, and
this program will include extensive trenching over several new,
gold, silver and copper targets.
About Red Mountain
Xanadu’s Red Mountain porphyry
copper-gold-silver project is located within the Dornogovi Province
of southern Mongolia, approximately 420km southeast of Ulaanbaatar
(Figure 2), and 70km west from the provincial
centre of Sainshand. The project has a granted 30-year mining
licence and comprises an underexplored porphyry district (covering
approximately 57km²).
FIGURE 2: Location of Red Mountain
in the South Gobi region of Mongolia
https://www.globenewswire.com/NewsRoom/AttachmentNg/35b50d88-f2d8-4c95-9b45-d5330a557b60
Red Mountain mineralisation is associated with
late-stage monzonite and quartz diorite porphyry dykes and stocks
emplaced on the flanks of the Red Mountain Intrusive Complex
(Figure 3). This consists of multiple co-genetic
porphyry gold and copper centres, mineralised tourmaline breccia
pipes, gold and copper base metal magnetite skarns and epithermal
gold veins.
Previous exploration at Red Mountain has defined
several broad zones of strongly mineralised quartz stockwork
veining associated with high-grade gold and increasing alteration
strength, with the mineralisation style suggesting strong
likelihood for depth extensions.
FIGURE 3: Red Mountain Mining
Licence, showing ground Landsat data, gold geochemistry and
priority targets
https://www.globenewswire.com/NewsRoom/AttachmentNg/1f33fca2-afd0-4ee7-8bb3-b3f16e461982
Shallow gold-rich and silver-rich copper
mineralisation has been identified in numerous zones, located
within a 4.5km long and 300m wide prospective mineralisation zone.
This mineralisation is primarily located in Bavuu, Stairy, Diorite,
Target 33, Nowie and Stockwork (Figure 3). Broad
spaced drilling has confirmed gold mineralisation is hosted by
hematite-quartz veins with coarse visible gold, occurring as
multiple stacked arrays. Veins are typically narrow, but very
high-grade with gold assays ranging from 1 g/t to >30 g/t gold
over widths of 0.5m to 1.5m. Mineralised veins are characterised by
banded and crustiform quartz and abundant sulphides. All these
features are commonly found in the lower boiling zone of epithermal
system, where bonanza grades are expected.
In addition to shallow, high-grade
mineralisation, Red Mountain has potential for large-scale porphyry
at depth. Highly anomalous geochemistry corresponds to broad zones
of porphyry mineralisation from trenching, zoned porphyry
alteration, overlapping with large-scale magnetic and gravity
anomalies, representing a compelling string of very large porphyry
targets over 6km strike (Figure 3). Initial deeper
drilling in 2017 encountered 200-300m wide zones of porphyry style
mineralisation at Target 10.
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 control a globally significant copper-gold
deposit in our flagship project. For information on Xanadu visit:
www.xanadumines.com
Colin MoorheadExecutive Chairman & Managing
DirectorXanadu Mines Ltdinfo@xanadumines.com+61 2 8280 7497This
Announcement was authorised for release by Xanadu’s Executive
Chairman & Managing Director.
Appendix 1: Trenching
Results
Table 1: Trench Locations at
T33
Trench ID |
Prospect |
East |
North |
RL |
Azimuth (°) |
Inc (°) |
Length (m) |
OUTR108 |
Target 33 |
373812 |
4938096 |
1068 |
175 |
-5 |
176.0 |
OUTR109 |
Target 33 |
373858 |
4938085 |
1063 |
173 |
-4 |
173.0 |
OUTR110 |
Target 33 |
374095 |
4938100 |
1050 |
178 |
-2 |
178.0 |
OUTR111 |
Target 33 |
374147 |
4938108 |
1067 |
179 |
-6 |
179.4 |
OUTR112 |
Target 33 |
374201 |
4938116 |
1063 |
180 |
-6 |
150.0 |
OUTR113 |
Target 33 |
374247 |
4938138 |
1060 |
179 |
-4 |
144.0 |
OUTR114 |
Target 33 |
374296 |
4938165 |
1054 |
179 |
-2 |
170.4 |
Table 2: Significant 2022 Trenching
Intercepts from T33
Trench ID |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Cu (%) |
OUTR108 |
10 |
36 |
26 |
0.20 |
0.06 |
including |
16 |
30 |
14 |
0.32 |
0.05 |
and |
46 |
62 |
16 |
0.20 |
0.21 |
and |
72 |
116 |
44 |
0.16 |
0.07 |
OUTR109 |
26 |
92 |
66 |
0.37 |
0.04 |
including |
50 |
82 |
32 |
0.60 |
0.04 |
including |
50 |
68 |
18 |
0.81 |
0.05 |
including |
58 |
68 |
10 |
1.23 |
0.09 |
and |
106 |
110 |
4 |
0.97 |
0.04 |
OUTR110 |
10 |
18 |
8 |
0.13 |
0.06 |
and |
80 |
86 |
6 |
0.12 |
0.03 |
and |
100 |
116 |
16 |
0.10 |
0.08 |
and |
130 |
140 |
10 |
0.16 |
0.01 |
and |
156 |
160 |
4 |
0.15 |
0.04 |
OUTR111 |
54 |
72 |
18 |
0.17 |
0.07 |
OUTR113 |
110 |
126 |
16 |
0.11 |
0.02 |
OUTR114 |
10 |
16 |
6 |
0.12 |
0.06 |
Appendix 2: Statements and
Disclaimers
Competent Person Statements
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
(JORC Code, 2012) 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.
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: Red Mountain Table 1 (JORC Code,
2012)
Set out below is Section 1 and Section 2 of
Table 1 under the JORC Code, 2012 for the Red Mountain project.
Data provided by Xanadu. This Table 1 updates the JORC Table 1
disclosure dated 24 August 2022.5
1.1 JORC TABLE 1 -
SECTION 1 - SAMPLING TECHNIQUES AND DATA
Criteria |
Commentary |
Sampling techniques |
- The exploration
results are based on diamond drill core samples, reverse
circulation (RC) chip samples and channel samples
from surface trenches.
- Representative ½
core samples were split from PQ, HQ & NQ diameter diamond drill
core on site using rock saws, on a routine two metre 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.
- RC chip samples
are ¼ splits from 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.
- Trench samples
are collected as 2m composite from 30m above the trench toe.
- Sampling
generally honours lithological contacts.
- Trench samples
are continuous along the length of the trench
|
Drilling techniques |
- The exploration
results are 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.
- 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.
- Trench samples
by previous explorers between 2001 to 2007 were prepared and
assayed by SGS Mongolia.
|
Quality of assay data and laboratory tests |
- All XAM 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 limit
(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 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 Xanadu.
- 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.
- Trenching
samples from 2001 to 2007 were analysed for 6 elements (Cu, Ag, Pb,
Zn, As and Mo) by SGS Mongolia using a three-acid-digestion of a
0.3g sub-sample followed by an AAS finish (AAS21R). 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 Xanadu’s Geobank data
base.
- The data is
managed by Xanadu geologists.
- The data base
and geological interpretation is managed by Xanadu.
- 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 49N
- Historically,
Eastman Kodak and Flexit electronic multi-shot downhole survey
tools have been used at Red Mountain 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 Red Mountain 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 DTM
is based on 1 m contours from satellite imagery with an accuracy of
±0.1 m.
- Trenching
locations for trenches between 2001 and 2007 were located using a
handheld GPS.
|
Data spacing and distribution |
- Holes spacings
range from <50m spacings within the core of mineralisation 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 1,300m vertical depth.
- The data spacing
and distribution is sufficient to establish geological and grade
continuity.
|
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 Xanadu 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 QA/QC. Methods
were found to conform to international best practice.
|
1.2 JORC TABLE 1 -
SECTION 2 - REPORTING OF EXPLORATION RESULTS(Criteria in
this section apply to all succeeding sections).
Criteria |
Commentary |
Mineraltenementand
landtenurestatus |
- The Project
comprises 1 Mining Licence (MV-17129A).
- Xanadu now owns
90% of Vantage LLC, the 100% owner of the Oyut Ulaan mining
licence.
- The Mongolian
Minerals Law (2006) and Mongolian Land Law (2002) govern
exploration, mining and land use rights for the project.
|
Explorationdone byother
parties |
- Previous
exploration was conducted by Quincunx Ltd, Ivanhoe Mines Ltd and
Turquoise Hill Resources Ltd including extensive drilling, surface
geochemistry, geophysics, mapping.
|
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 Red Mountain 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 holeInformation |
- Diamond drill
holes are the principal source of geological and grade data for the
Project.
- See figures in
this ASX/TSX Announcement.
|
DataAggregation methods |
- A nominal
cut-off of 0.1% CuEq 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% CuEq.
- A nominal
cut-off of 0.1g/t AuEq is used in gold dominant systems like for
identification of potentially significant intercepts for reporting
purposes. Higher grade cut-offs are 0.3g/t, 0.6g/t and 1g/t
AuEq.
- Maximum
contiguous dilution within each intercept is 9m for 0.1%, 0.3%,
0.6% and 1% CuEq.
- 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 (CuEq) 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 (CuEq or eCu) grade values were calculated using the
following formula:
- CuEq = Cu + Au *
0.62097 * 0.8235,
- Gold Equivalent
(AuEq or eAu) grade values were calculated using the following
formula:
- AuEq = 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 mineralisationon
widthsand
interceptlengths |
- 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
this ASX/TSX Announcement.
|
BalancedReporting |
- Exploration
results 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.
|
Othersubstantiveexplorationdata |
- Extensive work
in this area has been done and is reported separately.
|
FurtherWork |
- 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 RL) shows
widths and grades potentially suitable for underground
extraction.
- Exploration
ongoing.
|
1.3 JORC TABLE 1 -
SECTION 3 ESTIMATION AND REPORTING OF MINERAL
RESOURCES
Mineral Resources are not reported so this is
not applicable to this report.
1.4 JORC
TABLE 1 - SECTION 4 ESTIMATION AND REPORTING OF ORE
RESERVES
Ore Reserves are not reported so this is not
applicable to this report.
1 ASX Announcement 30 June 2016 - Further High-Grade Gold
Intercepts at Oyut Ulaan2 ASX Announcement 28 June 2017 – Oyut
Ulaan Exploration Update: Strong Drill Results Across the District3
ASX Announcement 30 June 2016 - Further High-Grade Gold Intercepts
at Oyut Ulaan4 ASX Announcement 28 June 2017 – Oyut Ulaan
Exploration Update: Strong Drill Results Across the District5
ASX/TSX Announcement 24 August 2022 – Exploration Ramps Up at Red
Mountain
A PDF accompanying this announcement is available
at: http://ml.globenewswire.com/Resource/Download/6825ff79-95de-4b6b-a4cd-e975c617cb60
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