Xanadu Mines Ltd (ASX: XAM) shares are surging today after the company released an update to the market this morning. The update was regarding the results of Xanadu's diamond drilling program in Stock Worth Hill at its Kharmagtai porphyry copper and gold project in Mongolia.
At the time of writing, the Xanadu share price has rocketed 36.36% to 4.5 cents.
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What did Xanadu Mines report?
The Xanadu share price is on a tear today after the company reported a diamond drill test hole had intersected "a broad zone of high-grade bornite mineralisation" south of its Stockwork Hill resource. The results increase the high grade bornite zone beyond the defined resources.
The intersection included promising results for both copper (Cu) and gold (AU):
- 175m @ 0.84% Cu and 1.83g/t Au (1.78% eCu) from 615m and
- 61m @ 1.43% Cu and 3.76g/t Au (3.36% eCu) from 651m
Highlighting the potential the company sees in Kharmagtai, it said the mineralisation is similar to what was seen at the high-grade Hugo Dummett deposit within the giant Oyu Tolgoi mine.
Commenting on the drill results, Xanadu's CEO, Andrew Stewart, said:
This is the first time we have seen this density of bornite mineralisation at Kharmagtai. This hole provides a snapshot of what the lower zones of mineralisation at Kharmagtai could look like with increasing gold to copper ratios.
The tenor of gold within the bornite is impressive, containing two to four grams of gold for every percent copper. This hole materially expands the width of the high-grade bornite zone and will help guide drilling for additional high-grade extensions.
Xanadu is currently in the process of arranging follow-up drilling to further test the new target. It will update the market on the planned Phase 2 drilling in subsequent releases. The company also stated it would provide a mineral resource estimate update in March.
Xanadu Mines share price snapshot
Having surged more than 36% today, the Xanadu Mines share price is currently up 50% over the past 12 months. By comparison the All Ordinaries Index (ASX: XAO) is down 1% since this time last year.
Based on today's share price, the company has a market capitalisation of around $35 million.
