Xanadu Mines to kick off drilling targeting metallurgical coal in Mongolia

Xanadu Mines (ASX: XAM) will shortly begin its much anticipated drilling at the highly prospective Javkhlant metallurgical coal exploration project in Mongolia.

The exploration is part of the company's strategic alliance withNoble Group (SGX: N21), Asia's largest diversified commodities trading company.

Javkhlant (JV earning up to 80%, Xanadu earning 40%) has the potential to a host a large premium coking and /or  thermal coal deposit of Permian and Carboniferous age in the South Gobi  basin, very close to the burgeoning energy and metals demand from China and nearby Asian markets.  

Importantly, the project is only 200 kilometres from the  Chinese rail network at Hami and reconnaissance explortion has identified numerous coal subcrops over a  strike of about 40 kilometres.

The company is up for the challenge of exploring the south western Gobi Altai Province of Mongolia, about 22 kilometres from the Burgastai border crossing point into China.

Brian Thornton, Xanadu’s chairman said “for the first time our drilling program will run right through the Mongolian winter, with results released progressively over the next three months.”

Under the terms of the agreement, the joint venture vehicle Ekhgoviin Chuluu LLC (EC) can earn up to 80% of the Javkhlant coal exploration licence by meeting various spending commitments over 2 years, including completion of a JORC Resource.

Through a thorough regional reconnaissance exploration program targeting coking coal over the last 18 months, Xanadu’s geologists recognised the potential of Javkhlant.

EC has contracted an reverse circulation drill rig to conduct a scout drill program of up to 4,000 metres at Javkhlant to test the numerous coal subcrops.

Xanadu listed on the ASX on 21 December 2010, following a raising of A$24 million, and currently has two thermal coal assets, Galshar and Khar Tarvaga.

The company is progressing exploration of its highly prospective suite of licences for coking and thermal coal, copper and gold in the south east Gobi, and copper at Sharchuluut.

Xanadu had a healthy A$22.4 million cash on hand at 30th September 2011.

Source:www.proactiveinvestors.com.a
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1 comment:

  1. Xanadu Mines begin its much anticipated drilling at the highly prospective Javkhlant metallurgical coal exploration project in Mongolia.So, its really great article.

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