AKIPRESS.COM - Xanadu Mines has revealed some spectacular rock chips from the newly discovered quartz-carbonate-sulphide veins at Oyut Ulaan copper-gold project, which is located within Dornogovi province of southern Mongolia, Proactive Investors reports.

Bonanza grade results include: 305.8g/t gold, 171.6g/t gold and 123.2g/t gold.

The multiple high-grade rock chip samples define three parallel epithermal lode structures within 1.5 kilometers.

Dr. Andrew Stewart, chief executive officer, commented: "We had the belief the geology displayed all the ingredients required for significant shallow high-grade gold mineralization, which has been confirmed by this surface sampling... The team is now developing plans for accelerated exploration as there is tremendous scope for a very significant discovery in this area."

Xanadu said that the majority of the new results are from sampling surface outcrops and sub crops that occur south of known porphyry mineralization at Diorite Hill and Stockwork Hill.

The style of mineralization indicates a potential link between known gold-rich porphyry copper mineralization and newly discovered veins.

A total of 157 rock chips samples were collected from out cropping and sub cropping veins across three main zones.

The majority of samples returned highly anomalous values, 57.9% of samples graded more than 1g/t gold.

Significantly a total of 56 samples returned grades higher than 10g/t gold and 8 samples returned more than 100g/t gold.

Oyut Ulaan is strategically located within the South Gobi Copper Belt, which hosts the world class Oyu Tolgoi copper-gold project, and 260 kilometers east of Xanadu’s flagship Kharmagtai copper-gold project.

Oyut Ulaan comprises a large and under-explored porphyry district covering 40 square kilometers, and consists of multiple co-genetic porphyry copper-gold centers, mineralized tourmaline breccia pipes and copper-gold/base metal magnetite skarns.