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XAM at 33c with no trade today
Xanadu Acquires Copper-Gold Exploration Licenses in South Gobi
January 23, Xanadu Mines Limited (ASX:XAM) --
· HIGHLY PROSPECTIVE SOUTH GOBI PORPHYRY COPPER-GOLD EXPLORATION LICENSES ACQUIRED BY XANADU MINES.
· DETAILED GROUND EXPLORATION TO COMMENCE SHORTLY.
Xanadu Mines Ltd (Xanadu) (ASX:XAM) is pleased to announce the finalisation of a farm-in agreement on the extensive Amgalant and Argalant Uul porphyry copper-gold exploration licenses ("the Project"). Under the terms of the agreement, Xanadu Mines can earn up to 80% of the Amgalant and Argalant Uul exploration licences by meeting various spending commitments over 2 years. Initially Xanadu will issue shares as consideration for the purchase of the licenses, the equivalent of US$500,000.
The two exploration licenses, which present a rare opportunity in the current market for porphyry copper targets, are located in the south Gobi region of southern Mongolia, approximately 460 kilometres southeast of the capital of Ulaanbaatar (Figure 1), in the central part of the highly prospective south Gobi porphyry belt. They are approximately 110 kilometres northeast of the world-class Oyu Tolgoi Cu-Au Project & proximal to the large undeveloped Tsagaan Suvarga copper‐molybdenum deposit (Figure 2). The southern Mongolian Palaeozoic magmatic belt hosts most of the known porphyry and intrusion-related mineralisation in the south Gobi.
Both exploration licenses Amgalant (15157X) & Argalant (15259X) were granted in 2008 for 9 years, therefore allowing Xanadu sufficient time to carry out an extensive exploration and resource drilling program.
NEW COPPER LICENCES COVER MORE THAN 1,000 SQ KMS
Both exploration licenses are large (Amgalant – approximately 109 square kilometres and Argalant Uul – approximately 895 square kilometres), remain relatively under explored and occur in a shallowly eroded porphyry-type environment. Initial exploration has identified numerous, large geophysical anomalies similar to the footprints recognised at Oyu Tolgoi and could indicate the presence of porphyry mineralisation at depth.
The Amgalant and Argalant Uul porphyry copper-gold exploration licenses were identified as the result of the systematic evaluation of prospective mineral belts in Mongolia by Xanadu's geological team. A substantial exploration effort will be undertaken on both exploration licenses given the potential for the discovery of large concealed porphyry deposits.
Both Amgalant and Argalant Uul projects underpin the core strategy of Xanadu Mines which aims to identify and develop significant porphyry copper-gold deposit opportunities, close to existing infrastructure which will meet anticipated current and future demand for metal from China and North Asian markets.
Commenting on the transaction, Xanadu's Chairman Brian Thornton said "at a time when prospective ground is increasingly difficult to acquire, both Amgalant and Argalant, promise a significant new metals opportunity for Xanadu's shareholders in the proven world class south Gobi porphyry copper belt. Our strategy is to focus on 2 key minerals – copper-gold and coking coal in 2012, next to the world's largest consumer of both, which is China ."
"Mogi" Munkhdul Badral
Senior Client Manager / Executive Director
CPS International LLC
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