Xanadu Mines wraps up acquisition of copper-gold porphyry project, Mongolia
Xanadu Mines (ASX: XAM) has completed the acquisition of a 90% interest in Vantage,
which holds the Oyut Ulaan porphyry copper-gold project in Mongolia,
following shareholder approval.
The project is located in the
Dornogovi Province of southern Mongolia, 70 kilometres west of the
future industrial center of Sainshand.
Xanadu has paid cash
consideration of US$600,000 and will issue 5,000,000 Xanadu shares, and
performance share options contingent on the recognition of a JORC
resource of up to 900,000 tonnes contained copper equivalent.
The
5,000,000 million shares will be issued to Aberdeen International, an
investment company and merchant bank listed on the Toronto Stock
Exchange.
Xanadu maintained a 25% interest and operatorship of
the project throughout 2013, and will continue systematic exploration at
Oyut Ulaan over 2014.
October 2013 drilling defined three
near-surface mineralised porphyry centres with results up to 85 metres
at 0.75% copper with 0.54 grams per tonne gold, including 36 metres at
1.49% copper and 1.02 grams per tonne gold.
The next phase of
exploration will focus on delineating potential shallow high-grade
mineralisation by exploring along strike from existing intersections,
and testing geophysical and geochemical anomalies which remain within
the Oyut Ulaan area district.
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