Xanadu Mines Ltd has announced the finalisation of a farm-in agreement on the extensive Amgalant and ArgalantUul porphyry copper-gold exploration licences, under the terms of which it can earn up to 80% of thelicences by meeting various spending commitments over twoyears. Both licences are located in the South Gobi region, in the central part of the highly prospective South Gobi porphyry belt. They are approximately 110 km northeast of the OyuTolgoi Project & proximal to the large undeveloped TsagaanSuvarga copper molybdenum deposit.
Both licences were granted in 2008 for 9 years, allowing Xanadu sufficient time to carry out an extensive exploration and resource drilling programme. Both are large, remain relatively underexplored and occur in a shallowly eroded porphyry-type environment. Initial exploration has identified numerous, large geophysical anomalies similar to the footprints recognised at OyuTolgoi and could indicate the presence of porphyry mineralisation at depth.A substantial exploration effort will now be undertaken on both, given the potential for discovery of large concealed porphyry deposits.