‘Xanadu is well-funded to execute 2 exploration programs’

Xanadu Mines has released its operations report for the first quarter of 2021, outlining that it has drilled seven holes for 8,000 meters at Kharmagtai CopperGold Project and six more holes for 4,000 meters at Red Mountain Project.

The exploration company continued to operate safely and efficiently through the quarter whilst working through a dynamic environment of COVID restrictions in Mongolia.

Xanadu’s CEO Andrew Stewart commented, “Xanadu drilling programs continued to deliver significant results, despite the global pandemic and challenges faced in Mongolia during their vaccination program. At Kharmagtai, the discovery of a high-grade, gold-rich bornite zone at depth moved us closer to our aspirational high-grade block of at least 100Mt at or greater than 0.8 percent copper equivalent. We consider this the target range to unlock development of Kharmagtai as a world class copper project. At our second project Red Mountain, the discovery of shallow, high-grade, bornite rich structures, shows the significant potential in this project and is leading us to rethink our exploration program.”

At Kharmagtai, a significant expansion of the high-grade bornite rich zone under Stockwork Hill delivered much higher gold to copper ratios than previously seen. Follow up drilling to define the size of that zone is ongoing.

At Red Mountain, shallow bornite rich copper mineralization was intercepted in hole OUDDH100, highlighting potential for lower volume/highergrade copper deposits in addition to larger volume, lower grade porphyries. Follow up drilling is planned pending lifting of travel restrictions.

Subsequent to the quarter, Tony Pearson was appointed to the Xanadu Board, which now compromises a majority of independent, non-executive directors.

“Pearson brings significant company director, industry executive, banking, and direct Mongolia experience to the board,” the company said.

Xanadu is now well funded to execute its strategy with completion of an equity placement of approximately 10.2 million AUD, which was settled on April 30 with the new shares to be allocated and commence trading on May 3.

The closing cash of 4.2 million AUD at end-March 2021, increased to 14.4 million AUD following the placement.

Xanadu’s shares last traded at 0.067 AUD, down by 1.47 percent, on the Australian Stock Exchange.