Xanadu Mines Ltd. on Wednesday reported that on ground exploration activities have commenced at the highly prospective Red Mountain Joint Venture (JV) with the Japan Oil, Gas and Metals National Corporation (JOGMEC). The Red Mountain JV project located within the Dornogovi Province of southern Mongolia, approximately 420 kilometers southeast of Ulaanbaatar, is a joint venture between Xanadu and JOGMEC. The project covers approximately 57 square kilometers in a frontier terrane with significant mineral endowment and has a granted 30 year mining license. According to the report, JOGMEC may earn up to 51 percent beneficial interest in the project by sole funding up to USD 7.2 million in exploration expenditure over the next four years. Exploration objectives of the earn-in deal are to discover Mongolia’s next world-class copper-porphyry deposit. Xanadu Mines is an ASX and TSX listed exploration company that seeks to discover and define globally significant porphyry copper-gold assets in Mongolia. “We are thrilled to have exploration underway again at our Red Mountain JV with JOGEMC, less than one month after signing the earn-in agreement. The fact that we can commence operational activities now, during the global COVID-19 crisis, is testament to the proactive and effective approach by the Government of Mongolia in managing the pandemic,” said Xanadu’s Chief Executive Officer, Dr. Andrew Stewart. “Red Mountain offers a rare opportunity to access a large, under-explored porphyry district. In the coming months, we will deploy a systematic exploration program, including deep penetrating geophysics, that we expect will provide a new perspective on the mineral potential at Red Mountain district. A steady stream of new geological information will help advance and refine several large-scale drill targets ready for testing in Q3 in 2020.”

Published Date:2020-05-18