Multiple New Breakthrough Achievements for Kharmagtai Discovery Drilling
TORONTO, Nov. 16, 2023 (GLOBE NEWSWIRE) -- *Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (Xanadu, XAM or the Company)* is pleased to provide an update on deep and shallow exploration drilling currently underway at the Kharmagtai Project in Mongolia, being undertaken with the Company’s joint venture partner Zijin Mining Group Co., Ltd. (Zijin). Xanadu’s experienced exploration team is currently operating three (3) diamond drill rigs which are focused on delivering new discoveries outside the current Mineral Resource Estimate (*MRE*) at the Kharmagtai copper and gold project.
*Highlights*
· New discovery drilling intersects mineralisation across multiple largely unexplored porphyry clusters, including high-density stockwork, breccia and gold only mineralisation.
· The first of four planned deep diamond drillholes targeting mineralisation below White Hill, the largest deposit delineated to date at Kharmagtai, expands the mineralised system by over 600m;
· *KHDDH648 – 1080m at 0.21% eCu from 491m.*
· Shallow drilling at *Cluster 2* extends mineralisation 800m along strike from the current MRE limit. Given proximity to the high-grade Stockwork Hill deposit it could represent a mineralised porphyry stockwork offset.
· *KHDDH786 - 144m at 0.34% eCu from 117m;*
· *Including 12m @ 0.63% eCu from 144m, and *
· *Including 12.3m @ 0.54% eCu from 168m.*
· Multiple new broad zones of gold-rich tourmaline breccia mineralisation delivered over a 2km strike, at *Cluster 5*.
· Extensive discovery drilling continues with regular news flow to continue throughout 2023, focussed on extensions to known deposits and new porphyry copper gold systems.*Xanadu’s Executive Vice President Exploration, Dr Andrew Stewart, said, *“Following the completion of more than 52,000 metres of infill and extensional drilling at Kharmagtai, our focus has shifted to the very exciting deep and shallow discovery drilling; aimed at making new economic discoveries outside the current MRE. Following successful delivery of higher-grade mineralisation from the infill and extensional drilling program, this purposeful program represents our most significant exploration pursuit in recent years.
The first of four currently planned deep drill holes, KHDDH648 intercepted an impressive (>1km) porphyry zone, expanding the White Hill mineralised system more than 600m down dip. Importantly this hole has provided important vectors required to target higher-grade mineralisation at depth; 3D geological modelling is underway to refine these vectors, in anticipation for high priority drilling.
These deep drill holes could prove to be a major Kharmagtai value driver; as they are designed to test for high-grade, large-scale systems at depth as seen at the nearby Olu Tolgoi Mine.
Discovery of shallow, broad intercepts of mineralisation along strike from the Stockwork Hill deposit is also very encouraging with drill hole KHDDH786 intersecting a strong and wide (144m) mineralised zone approximately 800m west of Stockwork Hill. Importantly this intercept includes a coherent zone of greater than 0.6% eCu, providing optimism towards discovering another high-grade deposit similar to Copper Hill and Stockwork Hill.
The good strike rate of significant intercepts in these holes provides us confidence that more shallow, high-grade deposits will be discovered at Kharmagtai. As drilling progresses, we look forward to providing additional updates advancing our important exploration activities at our flagship Kharmagtai Project.”
*About the Shallow Exploration Drilling *
Shallow exploration drilling at Kharmagtai is targeting additional porphyry copper-gold deposits outside the currently defined MRE. This programme also serves to inform future infrastructure location decisions associated with the potential development of the Kharmagtai Project into a large-scale mining operation.
An additional 9,000m of diamond drilling has been conducted in forty-one shallow (200m) diamond drill holes since the last update (ASX/TSX Press Release “Shallow Drilling Confirms Kharmagtai Discovery Potential, 5^th July 2023”) *(Figure 1, Tables 1 and 2)*. Twenty-four of the forty-one new drill holes have returned significant intercepts, with two holes assays pending.
*Figure 1:* Kharmagtai copper-gold district showing currently defined mineral deposits and planned and completed shallow exploration drill holes. Grey outlines are 2021 scoping study open pit designs and white dashed outlines define porphyry cluster target areas.
https://www.globenewswire.com/NewsRoom/AttachmentNg/97844f32-15e8-4114-aa55-19cae95974bf*Table 1:* Geological characteristics of the five copper-gold and gold clusters.
*Cluster* *Style* *Size* *Depth* *Host* *Max Copper from drilling* *Max Gold from drilling* *Comments*
*Cluster One* Porphyry Stockwork 1.5km by 1km Outcrop Diorite intrusive in siltstone *2m @ 0.35% Cu* *2m @ 0.74g/t Au* Outcropping high-density sheeted porphyry veining with malachite staining.
*Cluster Two* Porphyry Stockwork and Epithermal Gold 2km by 1km Outcrop Diorite intrusive in sandstone *2m @ 0.85% Cu* *2m @ 4.17g/t Au* Outcropping high-density sheeted porphyry veining with malachite staining.
*Cluster Three* Porphyry Stockwork and Tourmaline Breccia 1.5km by 1.5km Outcrop Diorite intrusive in siltstone *1.95m @ 5.38% Cu and 1.15m @ 5.59% Cu* *2m @ 1.06g/t Au* Outcropping porphyry veining and tourmaline breccia with malachite staining.
*Cluster Four* Porphyry Stockwork and Tourmaline Breccia 3km by 2km 10m of cover Diorite intrusive in siltstone *2m @ 0.69% Cu* *2m @ 1.06g/t Au* Previous broad intercepts of porphyry mineralisation
*Cluster Five* Porphyry Stockwork and Tourmaline Breccia 3km by 2km Between 5 and 20m of cover Diorite Intrusive *2m @0.72% Cu* *2m @ 1.1g/t Au* Porphyry veining and tourmaline breccia related mineralisation
*
New Shallow Drilling Results *
Drilling at *Cluster Two* (*Figure 1, 2 and 3*) targeted previous shallow porphyry stockwork mineralisation and was prioritised given the area is adjacent to existing planned open pits and planned infrastructure. Drill hole *KHDDH786* targeted a previous porphyry intercept *(Figure 3)* and encountered a broad zone of porphyry mineralisation above the Resource cut-off grade, including a cohesive zone greater than 0.6% eCu mineralisation. Result is significant as it may represent the faulted offset of Stockwork Hill. More drilling is planned to expand this exciting new target.
*Significant Intercepts KHDDH786*
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
*KHDDH786* Exploration 41 45 4 0.64 0.01 0.34 0.66
and 79 87 8 0.24 0.00 0.13 0.25
*and* * * *117* *261* *144* *0.18* *0.25* *0.34* *0.67*
including 127 225 98 0.22 0.30 0.41 0.81
*including* * * *144* *156* *12* *0.31* *0.47* *0.63* *1.23*
including 168 180.3 12.3 0.28 0.40 0.54 1.05
*
Figure 2*: Plan view of Cluster 2
https://www.globenewswire.com/NewsRoom/AttachmentNg/85f90e0b-0a1d-4af1-9054-d2d33ba2c95f
*Figure 3:* Cross Section Drill Hole KHDDH786.
https://www.globenewswire.com/NewsRoom/AttachmentNg/1f426369-c08d-4ffc-aba0-3c3c76a6005e
At *Cluster Three (Figures 1 and 4)*, a scissor hole was drilled to investigate the previously reported high-grade result from KHDDH622 (15m @ 1.26% Cu, including 5.95m @ 2.97% Cu). Objective of drill hole KHDDH759 was to determine both dip and strike of the structure hosting high-grade copper in KHDDH622. KHDDH759 encountered the mineralised structure in two sections; between 16 to 22m and a secondary narrow mineralised structure between 106.2 and 108.5m, containing 2.3m @ 1.3% Cu.
The mineralised structure near surface was well within the weathering zone and copper is depleted relative to the deeper sulphide zone. Additional drilling is planned along strike, targeting the extensions of the higher-grade sulphide zone.
*Figure 4:* Cross Section Drill Hole KHDDH759 and KHDDH622.
https://www.globenewswire.com/NewsRoom/AttachmentNg/cb0bf904-a5d9-41b4-bcfd-ef7e1520eb61
Drilling at *Cluster Five* (*Figures 1 and 6*) targeted strong copper anomalism at the top of basement approximately 30m below surface and has successfully defined 2km long zone of gold-rich tourmaline breccia (*Figure 6*). Follow-up drilling is planned to test this large-scale target.Drill Holes *KHDDH761, KHDDH762, KHDDH764 and KHDDH783 (Figure 6) at Cluster Five *encountered broad zones of gold dominated tourmaline breccia and porphyry mineralisation, providing evidence of a very large-scale tourmaline breccia. Follow-up drilling is planned to test this exciting large-scale target.
*Significant Intercepts KHDDH761, 762, 764 and 783*
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
KHDDH761 Target Five *39.5* *141* *101.5* *0.19* *0.06* *0.16* *0.30*
including 80 88 8 0.32 0.08 0.24 0.47
including 98 106 8 0.61 0.07 0.38 0.74
and 151 161 10 0.12 0.06 0.12 0.24
and 175 225 50 0.11 0.09 0.14 0.28
and 235 239 4 0.17 0.20 0.29 0.56
and 261 267.5 6.5 0.37 0.16 0.35 0.69
and 277 293.85 16.85 0.23 0.10 0.22 0.43
and 316 337.5 21.5 0.22 0.07 0.18 0.35
including 324 334 10 0.28 0.09 0.24 0.46
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
KHDDH762 Target Five 43 96.3 53.3 0.21 0.07 0.17 0.34
and 113.1 178.2 65.1 0.28 0.06 0.20 0.39
including 129 145 16 0.44 0.07 0.30 0.58
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
KHDDH764 Target Five 56.9 67 10.1 0.27 0.11 0.25 0.48
including 56.9 63 6.1 0.35 0.14 0.32 0.63
and 129 139 10 0.50 0.06 0.31 0.61
including 135 139 4 0.80 0.07 0.48 0.93
and 149.25 194 44.75 0.21 0.09 0.20 0.39
including 169 177 8 0.53 0.21 0.48 0.94
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
KHDDH783 Target Five 29 68 39 0.06 0.08 0.11 0.22
and 88 144 56 0.08 0.15 0.19 0.37
including 106 110 4 0.20 0.44 0.54 1.05
and 194 211 17 0.06 0.08 0.11 0.22
*
Figure 6:* Plan view of Cluster Five.
https://www.globenewswire.com/NewsRoom/AttachmentNg/c89f4308-d468-42e5-a497-f164b764a908
Several isolated drill holes, distal to defined clusters have encountered broad zones of peripheral porphyry and tourmaline breccia mineralisation; two new high priority targets identified *(Figure 7)*.Drill holes *KHDDH793 *and *KHDDH795 *were drilled targeting shallow top of basement copper geochemical anomalies.
*KHDDH793* intercepted a zone of tourmaline breccia *(Figure 8)* approximately 1km along strike from the Stockwork Hill Tourmaline Breccia. Follow up drilling is planned to expand this shallow intercept and target high-grade tourmaline breccia between KHDDH973 and Stockwork Hill.
*Significant Intercepts KHDDH793*
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
KHDDH793 Exploration 51 63 12 0.05 0.07 0.10 0.19
and 106 126 20 0.15 0.25 0.33 0.64
including 110 124 14 0.13 0.32 0.39 0.76
and 138 158 20 0.10 0.08 0.13 0.26
*
KHDDH795* intercepted a broad zone of low-grade porphyry mineralisation *(Figure 9)* approximately 1.5km southwest of Golden Eagle Deposit. There is very little drilling in this area and such a broad intercept of mineralisation suggests the presence of a large-scale porphyry in this area. Follow up drilling is planned to expand this shallow intercept.
*Significant Intercepts KHDDH795*
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
KHDDH795 Exploration 68 94 26 0.03 0.07 0.09 0.17
And 141 151 10 0.11 0.11 0.17 0.33
And 194.1 294 99.9 0.22 0.08 0.19 0.37
Including 262 279.5 17.5 0.32 0.11 0.27 0.54
And 308 330 22 0.13 0.06 0.13 0.25
And 340 435 95 0.17 0.07 0.16 0.31
Including 382 388 6 0.35 0.17 0.35 0.68
Including 404.5 410.8 6.3 0.14 0.10 0.18 0.34
And 491 495 4 0.17 0.06 0.15 0.30
*
Figure 7:* Plan view showing the location of new targets identified by drill holes KHDDH793 and KHDDH795.
https://www.globenewswire.com/NewsRoom/AttachmentNg/22bc11be-dea3-4a6d-9190-3193cadf2387
*Figure 8:* Cross Section Drill Hole KHDDH793.
https://www.globenewswire.com/NewsRoom/AttachmentNg/94424aa0-b309-4b31-9f1c-536cdac1d812
*Figure 9:* Cross Section Drill Hole KHDDH795.
https://www.globenewswire.com/NewsRoom/AttachmentNg/53f6f51b-9f48-4058-9ca5-29a040ace8a4
*Large-scale, high-grade exploration programme*Existing geochemical, geological, and geophysical datasets point to known mineralisation at Kharmagtai represents a shallow surface expression of a much larger porphyry system at depth (*Figure 10*).
Deep drill holes have been designed to ensure that a potential high-grade, large-scale and deeper “Oyu Tolgoi” style deposit is discovered early in the PFS process, allowing optimal infrastructure decisions to be made, without sterilising what could be the major value driver at Kharmagtai (*Figure 11*).
Drill hole *KHDDH648* was designed to test for a large-scale high-grade extension beneath White Hill. KHDDH648 intercepted a very large (+1km) zone of porphyry mineralisation, expanding the White Hill mineralised system more than 600m down dip *(Figure 12)*. This hole has provided the vectors required to target higher-grade mineralisation at depth. 3D geological modelling is underway to refine these vectors for further high priority drilling.
*Significant Intercepts KHDDH648*
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *eCu (%)* *eAu (g/t)*
KHDDH648 29 123 94 0.08 0.14 0.18 0.35
including 99 111 12 0.10 0.18 0.23 0.45
and 139 221 82 0.04 0.12 0.14 0.28
and 241 269 28 0.02 0.07 0.08 0.16
and 287 311 24 0.03 0.09 0.10 0.19
and 325 345 20 0.03 0.13 0.14 0.28
and 423.2 479 55.8 0.05 0.16 0.18 0.36
including 423.2 439 15.8 0.07 0.23 0.27 0.53
including 451 457 6 0.08 0.26 0.31 0.60
including *491* *1571* *1080* *0.06* *0.17* *0.21* *0.41*
including 509 527 18 0.07 0.27 0.31 0.60
including 619 707 88 0.08 0.28 0.32 0.63
including 627 635 8 0.17 0.64 0.73 1.43
including 717 798 81 0.09 0.29 0.34 0.66
including 759 763.4 4.4 0.19 0.63 0.73 1.43
including 824 836 12 0.07 0.20 0.24 0.47
including 848 872 24 0.10 0.30 0.35 0.69
including 964 976 12 0.09 0.22 0.27 0.52
including 1004 1020 16 0.18 0.22 0.32 0.62
including 1114.8 1124 9.2 0.06 0.20 0.24 0.46
including 1160 1196 36 0.07 0.24 0.28 0.55
including 1269 1278 9 0.13 0.29 0.35 0.69
and 1440 1444 4 0.12 0.24 0.30 0.59
and 1589 1613 24 0.06 0.08 0.11 0.21
and 1623 1635 12 0.06 0.07 0.10 0.20
and 1689 1693 4 0.07 0.10 0.13 0.25
and 1703 1737 34 0.11 0.03 0.09 0.18
and 1761 1769.3 8.3 0.22 0.19 0.30 0.59
and 1828 1840 12 0.07 0.08 0.12 0.23
and 1876 1912 36 0.27 0.12 0.25 0.50
and 1902 1912 10 0.13 0.24 0.31 0.60
and 1928 1964 36 0.05 0.06 0.09 0.17
and 2029 2048.3 19.3 0.08 0.02 0.07 0.13
and 2115.8 2124 8.2 0.35 0.05 0.23 0.44
*
Figure 10:* Long Sections through the Oyu Tolgoi Porphyry System and The Kharmagtai Porphyry System. Deep high-grade exploration drill program geochemical zonation points to much larger system beneath Kharmagtai.
https://www.globenewswire.com/NewsRoom/AttachmentNg/e583473a-20bb-4894-af17-0e7070c45b6e
*Figure 11:* Kharmagtai copper-gold district showing currently defined mineral deposits and planned deep exploration holes.
https://www.globenewswire.com/NewsRoom/AttachmentNg/1edbe5f0-a28c-47d5-9c2c-c4e7fad6fd76
*Figure 12:* Cross Section and level plan showing KHDDH648 beneath White Hill
https://www.globenewswire.com/NewsRoom/AttachmentNg/26673379-eac6-490b-9762-7f1940fe8944
*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 jointly control a globally significant copper-gold deposit in our flagship Kharmagtai project. Xanadu is the Operator of a 50-50 JV with Zijin Mining Group in Khuiten Metals Pte Ltd, which controls 76.5% of the Kharmagtai project.
For further information on Xanadu, please visit: *www.xanadumines.com* or contact:
Colin Moorhead
Executive Chairman & Managing Director
E: colin.moorhead@xanadumines.com
P: +61 2 8280 7497
This Announcement was authorised for release by Xanadu’s Board of Directors.
*Appendix 1: Drilling Results*
Note that true widths will generally be narrower than those reported. See disclosure in JORC explanatory statement attached.
*Table 1: Drill hole collar*
*Hole ID* *Prospect* *East* *North* *RL* *Azimuth (°)* *Inc (°)* *Depth (m)*
KHDDH648 Exploration 591207 4876617 1318 30 -70 2329.3
KHDDH759 Exploration 593445 4874259 1292 135 -58 219.0
KHDDH760 Exploration 596805 4876930 1272 315 -60 250.0
KHDDH761 Exploration 597087 4877219 1266 315 -60 369.5
KHDDH762 Exploration 597943 4877488 1265 315 -60 205.7
KHDDH763 Exploration 597655 4877395 1262 315 -60 200.0
KHDDH764 Exploration 598109 4877537 1266 315 -60 210.5
KHDDH765 Exploration 598332 4877850 1265 315 -60 200.0
KHDDH766 Exploration 596305 4876949 1272 315 -60 200.0
KHDDH767 Exploration 597797 4878235 1262 315 -60 200.0
KHDDH768 Exploration 597974 4876374 1284 315 -60 210.0
KHDDH769 Exploration 595825 4876189 1276 315 -60 200.0
KHDDH770 Exploration 598779 4877433 1274 315 -60 200.0
KHDDH771 Exploration 595262 4875925 1274 315 -60 200.0
KHDDH772 Exploration 598083 4876458 1286 315 -60 200.0
KHDDH773 Exploration 597536 4878223 1262 315 -60 200.0
KHDDH774 Exploration 596778 4877943 1266 315 -60 200.0
KHDDH775 Exploration 597306 4878213 1263 315 -60 200.0
KHDDH776 Exploration 596562 4878738 1264 315 -60 200.0
KHDDH777 Exploration 596296 4878513 1265 315 -60 200.0
KHDDH778 Exploration 596093 4878438 1266 315 -60 200.0
KHDDH780 Exploration 595801 4878235 1265 315 -60 200.0
KHDDH781 Exploration 598555 4878772 1264 315 -60 200.0
KHDDH782 Exploration 598301 4878241 1264 315 -60 200.0
KHDDH783 Exploration 598864 4877631 1271 315 -60 215.6
KHDDH784 Exploration 599083 4877646 1275 315 -60 279.5
KHDDH785 Exploration 591415 4878081 1294 -60 200.0
KHDDH786 Exploration 591256 4878095 1294 315 -60 300.0
KHDDH787 Exploration 599204 4877781 1284 315 -60 200.0
KHDDH788 Exploration 591099 4878042 1294 -60 222.5
KHDDH789 Exploration 597993 4877166 1268 315 -60 276.9
KHDDH790 Exploration 597927 4877057 1267 315 -60 214.5
KHDDH791 Exploration 597758 4876919 1265 315 -60 247.0
KHDDH792 Exploration 590809 4877992 1299 315 -60 221.5
KHDDH793 Exploration 593706 4877021 1283 315 -60 232.0
KHDDH794 Exploration 597193 4876330 1275 -60 200.0
KHDDH795 Exploration 594260 4875729 1285 315 -60 498.4
KHDDH796 Exploration 595818 4874725 1292 315 -60 93.0
KHDDH797 Exploration 596531 4875896 1282 315 -60 200.0
KHDDH798 Exploration 594900 4875664 1278 315 -60 200.0
KHDDH799 Exploration 591077 4874898 1326 315 -60 200.0
KHDDH800 Exploration 590011 4874691 1347 315 -60 201.0
*
Table 2: Significant drill results*
*Hole ID* *Prospect* *From (m)* *To (m)* *Interval (m)* *Au (g/t)* *Cu (%)* *CuEq (%)* *AuEq (g/t)*
KHDDH648 29 123 94 0.08 0.14 0.18 0.35
including 99 111 12 0.10 0.18 0.23 0.45
and 139 221 82 0.04 0.12 0.14 0.28
and 241 269 28 0.02 0.07 0.08 0.16
and 287 311 24 0.03 0.09 0.10 0.19
and 325 345 20 0.03 0.13 0.14 0.28
and 423.2 479 55.8 0.05 0.16 0.18 0.36
including 423.2 439 15.8 0.07 0.23 0.27 0.53
including 451 457 6 0.08 0.26 0.31 0.60
including 491 1571 1080 0.06 0.17 0.21 0.41
including 509 527 18 0.07 0.27 0.31 0.60
including 619 707 88 0.08 0.28 0.32 0.63
including 627 635 8 0.17 0.64 0.73 1.43
including 717 798 81 0.09 0.29 0.34 0.66
including 759 763.4 4.4 0.19 0.63 0.73 1.43
including 824 836 12 0.07 0.20 0.24 0.47
including 848 872 24 0.10 0.30 0.35 0.69
including 964 976 12 0.09 0.22 0.27 0.52
including 1004 1020 16 0.18 0.22 0.32 0.62
including 1114.8 1124 9.2 0.06 0.20 0.24 0.46
including 1160 1196 36 0.07 0.24 0.28 0.55
including 1269 1278 9 0.13 0.29 0.35 0.69
and 1440 1444 4 0.12 0.24 0.30 0.59
and 1589 1613 24 0.06 0.08 0.11 0.21
and 1623 1635 12 0.06 0.07 0.10 0.20
and 1689 1693 4 0.07 0.10 0.13 0.25
and 1703 1737 34 0.11 0.03 0.09 0.18
and 1761 1769.3 8.3 0.22 0.19 0.30 0.59
and 1828 1840 12 0.07 0.08 0.12 0.23
and 1876 1912 36 0.27 0.12 0.25 0.50
and 1902 1912 10 0.13 0.24 0.31 0.60
and 1928 1964 36 0.05 0.06 0.09 0.17
and 2029 2048.3 19.3 0.08 0.02 0.07 0.13
and 2115.8 2124 8.2 0.35 0.05 0.23 0.44
KHDDH759 Target 10 6 28 22 0.01 0.20 0.20 0.39
including 16 22 6 0.01 0.41 0.41 0.81
and 38 52 14 0.01 0.13 0.13 0.26
and 92 97 5 0.03 0.13 0.15 0.28
and 106.2 118 11.8 0.01 0.29 0.30 0.58
KHDDH760 Exploration 189 198.9 9.9 0.03 0.13 0.15 0.28
KHDDH761 Exploration 39.5 141 101.5 0.19 0.06 0.16 0.30
including 80 88 8 0.32 0.08 0.24 0.47
including 98 106 8 0.61 0.07 0.38 0.74
and 151 161 10 0.12 0.06 0.12 0.24
and 175 225 50 0.11 0.09 0.14 0.28
and 235 239 4 0.17 0.20 0.29 0.56
and 261 267.5 6.5 0.37 0.16 0.35 0.69
and 277 293.85 16.85 0.23 0.10 0.22 0.43
and 316 337.5 21.5 0.22 0.07 0.18 0.35
including 324 334 10 0.28 0.09 0.24 0.46
KHDDH762 Exploration 43 96.3 53.3 0.21 0.07 0.17 0.34
and 113.1 178.2 65.1 0.28 0.06 0.20 0.39
including 129 145 16 0.44 0.07 0.30 0.58
KHDDH763 Exploration 173 179 6 0.21 0.01 0.12 0.23
KHDDH764 Exploration 56.9 67 10.1 0.27 0.11 0.25 0.48
including 56.9 63 6.1 0.35 0.14 0.32 0.63
and 129 139 10 0.50 0.06 0.31 0.61
including 135 139 4 0.80 0.07 0.48 0.93
and 149.25 194 44.75 0.21 0.09 0.20 0.39
including 169 177 8 0.53 0.21 0.48 0.94
KHDDH765 Exploration 144 150.5 6.5 0.29 0.12 0.27 0.52
KHDDH766 Exploration No significant intercepts
KHDDH767 Exploration No significant intercepts
KHDDH768 Exploration No significant intercepts
KHDDH769 Exploration No significant intercepts
KHDDH770 Exploration 42 48 6 0.31 0.03 0.19 0.38
and 70 84 14 0.03 0.12 0.14 0.27
and 94 148 54 0.06 0.10 0.13 0.25
and 181 194 13 0.07 0.05 0.08 0.16
KHDDH771 Exploration 39 65.5 26.5 0.30 0.04 0.19 0.38
and 76 86.9 10.9 0.18 0.06 0.15 0.29
and 108 123.4 15.4 0.13 0.12 0.18 0.35
KHDDH772 Exploration 41.3 51 9.7 0.19 0.05 0.15 0.29
KHDDH773 Exploration No significant intercepts
KHDDH774 Exploration 92.2 107 14.8 0.44 0.01 0.23 0.46
KHDDH775 Exploration No significant intercepts
KHDDH776 Exploration No significant intercepts
KHDDH777 Exploration No significant intercepts
KHDDH778 Exploration No significant intercepts
KHDDH780 Exploration No significant intercepts
KHDDH781 Exploration No significant intercepts
KHDDH782 Exploration No significant intercepts
KHDDH783 Exploration 29 68 39 0.06 0.08 0.11 0.22
and 88 144 56 0.08 0.15 0.19 0.37
including 106 110 4 0.20 0.44 0.54 1.05
and 194 211 17 0.06 0.08 0.11 0.22
KHDDH784 Exploration 224 228 4 0.19 0.09 0.18 0.36
and 274 279.6 5.6 0.12 0.08 0.14 0.27
KHDDH785 Exploration No significant intercepts
KHDDH786 Exploration 41 45 4 0.64 0.01 0.34 0.66
and 79 87 8 0.24 0.00 0.13 0.25
and 117 261 144 0.18 0.25 0.34 0.67
including 127 225 98 0.22 0.30 0.41 0.81
including 144 156 12 0.31 0.47 0.63 1.23
including 168 180.3 12.3 0.28 0.40 0.54 1.05
KHDDH787 Exploration 22 38 16 0.14 0.12 0.19 0.37
including 32 38 6 0.27 0.26 0.40 0.78
and 56 70 14 0.10 0.13 0.18 0.35
and 86 95 9 0.05 0.12 0.14 0.28
and 128 138 10 0.12 0.06 0.13 0.25
and 188 199 11 0.07 0.07 0.11 0.21
KHDDH788 Exploration 141 145 4 0.18 0.03 0.12 0.23
KHDDH789 Exploration 80 85 5 0.18 0.05 0.14 0.27
and 271 275 4 0.18 0.05 0.14 0.27
KHDDH790 Exploration 112 134 22 0.06 0.04 0.07 0.13
KHDDH791 Exploration Assays pending
KHDDH792 Exploration 24 30 6 0.03 0.14 0.15 0.30
and 123 130.9 7.9 0.04 0.07 0.09 0.18
and 172 184 12 0.05 0.07 0.10 0.19
and 204 214 10 0.07 0.07 0.11 0.22
KHDDH793 Exploration 51 63 12 0.05 0.07 0.10 0.19
and 106 126 20 0.15 0.25 0.33 0.64
including 110 124 14 0.13 0.32 0.39 0.76
and 138 158 20 0.10 0.08 0.13 0.26
KHDDH794 Exploration No significant intercepts
KHDDH795 Exploration 68 94 26 0.03 0.07 0.09 0.17
and 141 151 10 0.11 0.11 0.17 0.33
and 194.1 294 99.9 0.22 0.08 0.19 0.37
including 262 279.5 17.5 0.32 0.11 0.27 0.54
and 308 330 22 0.13 0.06 0.13 0.25
and 340 435 95 0.17 0.07 0.16 0.31
including 382 388 6 0.35 0.17 0.35 0.68
including 404.5 410.8 6.3 0.14 0.10 0.18 0.34
and 491 495 4 0.17 0.06 0.15 0.30
KHDDH796 Exploration No significant intercepts
KHDDH797 Exploration 161 165 4 0.48 0.02 0.26 0.51
KHDDH798 Exploration 14 28 14 0.09 0.09 0.13 0.26
and 134 154 20 0.04 0.13 0.15 0.29
KHDDH799 Exploration Assays pending
KHDDH800 Exploration Assays pending
*
Appendix 2: Statements and Disclaimers*
*Competent Person Statement*
The information in this announcement that relates to Mineral Resources is based on information compiled by Mr Robert Spiers, who is responsible for the Mineral Resource estimate. Mr Spiers is a full time Principal Geologist employed by Spiers Geological Consultants (SGC) and is a Member of the Australian Institute of Geoscientists. He 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 Qualified Person as defined in the CIM Guidelines and National Instrument 43-101 and as a Competent Person under JORC Code 2012. Mr Spiers consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
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 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.
*Mineral Resources and Ore Reserves Reporting Requirements*
The 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.
The information in this Announcement relates to the exploration results previously reported in ASX Announcements which are available on the Xanadu website at:
*https://www.xanadumines.com/site/investor-centre/asx-announcements*
The Company is not aware of any new, material information or data that is not included in those market announcements.
*Copper Equivalent Calculations*
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) grade values were calculated using the formula: CuEq = Cu + Au * 0.60049 * 0.86667.
Where Cu - copper grade (%); Au - gold grade (g/t); 0.60049 - conversion factor (gold to copper); 0.86667 - relative recovery of gold to copper (86.67%).
The copper equivalent formula was based on the following parameters (prices are in USD): Copper price 3.4 $/lb; Gold price 1400 $/oz; Copper recovery 90%; Gold recovery 78%; Relative recovery of gold to copper = 78% / 90% = 86.67%.
*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 2: Kharmagtai 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 7 June 2023.
*JORC TABLE 1 - SECTION 1 - SAMPLING TECHNIQUES AND DATA*
(Criteria in this section apply to all succeeding sections).
*Criteria* *Commentary*
*Sampling techniques* · Representative ½ core samples were split from PQ, HQ & NQ diameter diamond drill core on site using rock saws, on a routine 2m 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.
· Reverse Circulation (*RC*) chip samples are ¼ splits from one meter (*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.
*Drilling techniques* · The Mineral Resource Estimation has been 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 and is entirely appropriate to support Mineral Resource Estimation, mining and metallurgical studies.
· 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 30^th 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.
*Quality of assay data and laboratory tests* · All 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 (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 Mineral Resource Estimate (*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 XAM.
· 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.
*Verification of sampling and assaying* · All assay data QA/QC is checked prior to loading into XAM’s Geobank data base.
· The data is managed by XAM geologists.
· The data base and geological interpretation is managed by XAM.
· 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 48N
· Historically, Eastman Kodak and Flexit electronic multi-shot downhole survey tools have been used at Kharmagtai 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 Kharmagtai 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 Digital Terrain Model (*DTM*) is based on 1m contours from satellite imagery with an accuracy of ±0.1 m.
*Data spacing and distribution* · Holes spacings range from <50m spacings within the core of mineralization 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 1,304m vertical depth.
· The data spacing and distribution is sufficient to establish geological and grade continuity, and to support the Mineral Resource classification.
*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 sCuEqrity* · 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 XAM 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 QAQC. Methods were found to conform to international best practice.
· 2018: CSA Global reviewed the entire drilling, logging, sampling, sample shipping and laboratory processes during the competent persons site visit for the 2018 MRE and found the systems and adherence to protocols to be to an appropriate standard.
*
JORC TABLE 1 - SECTION 2 - REPORTING OF EXPLORATION RESULTS*
(Criteria in this section apply to all succeeding sections).
*Criteria* *Commentary*
*Mineral*
*tenement*
*and land*
*tenure*
*status* · The Project comprises 2 Mining Licences (MV-17129A Oyut Ulaan and (MV-17387A Kharmagtai):
· Xanadu now owns 90% of Vantage LLC, the 100% owner of the Oyut Ulaan mining licence.
· The Kharmagtai mining license MV-17387A is 100% owned by Oyut Ulaan LLC. Xanadu has an 85% interest in Mongol Metals LLC, which has 90% interest in Oyut Ulaan LLC. The remaining 10% in Oyut Ulaan LLC is owned by Quincunx (BVI) Ltd (“Quincunx”).
· The Mongolian Minerals Law (2006) and Mongolian Land Law (2002) govern exploration, mining and land use rights for the project.
*Exploration*
*done by*
*other*
*parties* · Previous exploration at Kharmagtai was conducted by Quincunx Ltd, Ivanhoe Mines Ltd and Turquoise Hill Resources Ltd including extensive drilling, surface geochemistry, geophysics, mapping.
· Previous exploration at Red Mountain (Oyut Ulaan) was conducted by Ivanhoe Mines.
*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 Kharmagtai 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 hole*
*Information* · Diamond drill holes are the principal source of geological and grade data for the Project.
· See figures in this ASX/TSX Announcement.
*Data*
*Aggregation methods* · The CSAMT data was converted into 2D line data using the Zonge CSAMT processing software and then converted into 3D space using a UBC inversion process. Inversion fit was acceptable, and error was generally low.
· 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 eAu is used in gold dominant systems like Golden Eagle for identification of potentially significant intercepts for reporting purposes. Higher grade cut-offs are 0.3g/t, 0.6g/t and 1g/t eAu.
· 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. The copper equivalent calculation used is based off the CuEq calculation defined by CSA Global in the 2018 Mineral Resource Upgrade.
Copper equivalent (CuEq) grade values were calculated using the following formula:
CuEq = Cu + Au * 0.62097 * 0.8235,
Gold Equivalent (eAu) grade values were calculated using the following formula:
eAu = 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 mineralisation*
*on widths*
*and intercept*
*lengths* · 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 the body of this ASX/TSX Announcement.
*Balanced*
*reporting* · Resources 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.
*Other substantive*
*exploration data* · Extensive work in this area has been done and is reported separately.
*Further*
*Work* · 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 RLl) shows widths and grades potentially suitable for underground extraction.
· Exploration on going.
*
JORC TABLE 1 - SECTION 3 - ESTIMATION AND REPORTING OF MINERAL RESOURCES *
Mineral Resources are not reported so this is not applicable to this Announcement. Please refer to the Company’s ASX Announcement dated 1 December 2021 for Xanadu’s most recent reported Mineral Resource Estimate and applicable Table 1, Section 3.
*JORC TABLE 1 - SECTION 4 - ESTIMATION AND REPORTING OF ORE RESERVES *
Ore Reserves are not reported so this is not applicable to this Announcement.