Ongoing test work shows that gold should report to a copper concentrate as free gold inclusion.

The new results build on Xanadu’s previous metallurgical studies which showed very high gold recovery to the rougher concentrate.

Xanadu’s chief executive officer Dr Andrew Stewart said: “These above average results, as expected, show that gold occurs as coarse grains in association with principle copper sulphides.

“While further testing is required as the project advances, we see no significant hurdles to producing a high-quality concentrate via standard processing pathways from the Kharmagtai project.”

The objective was to determine the location of gold across all three zones of the Kharmagtai deposit - Copper Hill, White Hill and Stockwork Hill.

Petrological and scanning electron microprobe work showed most gold as separate grains within the copper-bearing sulphides and pyrite rather than as a solid solution.

The grains range up to 100 microns in size and include native gold and with silver as electrum.

Some minor grains also occur in silicate minerals and magnetite.

The copper sulphides analysed showed no trace metal within them as solid solution, indicating sulphides from the samples should produce concentrates free of significant deleterious elements.

“The test results allow us to focus on the drilling underway,” Stewart said.

“This is expanding the resource and targeting near-surface porphyry copper-gold deposits within this largely under-explored porphyry copper-gold district.”