- Xanadu Mines (TSX:XAM) has suspended drilling activity at the Kharmagtai mine in Mongolia, due to COVID-19 fears
- The mining company has also published its results for 2019
- Xanadu recently signed an earn-in agreement with JOGMEC (Japan Oil Gas and Metals National Corporation)
- The company appointed Colin Moorhead as non-executive chairman in November 2019
- Xanadu Mines (TSX:XAM) is holding steady at 2 cents per share, with a market cap of $15 million
Xanadu Mines (TSX:XAM) has announced its 2019 results, and the suspension of drilling at the Kharmagtai mine in Mongolia.
The company ordered the closure because of fears of COVID-19 infections at the site and surrounding areas.
Xanadu has reviewed its 2020 work plan, and canceled or deferred all non-essential activities.
The company also recently appointed Colin Moorhead as a non-executive chairman of its board.
The company’s step out drilling program results came in just three weeks ago.
In those results were intersections of 0.68 per cent copper at 117m, and 0.58 grams per tonne of gold at 555m.
Results indicated that the tourmaline breccia the company has been drilling extends for nearly a kilometre east of their deposit. This significantly improves the company’s initial resources estimates.
Xanadu’s CEO, Dr Andrew Stewart, said that the results proved that their theory of Kharmagtai’s potential as a significant copper-gold system was right.
“Drilling now confirms that mineralisation extends beyond Billy’s Basalt Shear and may extend potentially all the way to the Sandstorm prospect over 1 kilometre away,” he said.
Red Mountain is located 265 kilometres from Kharmagtai and has also shown potential.
The Earn-in deal will give JOGMEC a 51 per cent stake at the site after funding exploration there for the next 4 years.
The company still expects to commence drilling at the site in April, despite COVID-19 fears.
In the company’s 2019 report, Xanadu’s new non-executive chairman, Colin Moorhead, gave an insight into recent announcements and how they will affect the company in the coming weeks and months.
“As I write to you, the world is being disrupted on an unprecedented scale by global COVID-19 pandemic.
“Your board and management have been working hard, making plans to weather this storm and the uncertainty it brings. We will position Xanadu to take advantage as the global economy recovers, as no doubt it will do,” he said.
The company’s aim is to have Kharmagtai listed as a true Tier 1 gold resource, which means more drilling.
The drilling however will have to wait, until COVID-19 has run its course.
Xanadu Mines (TSX:XAM) is holding steady, trading at 2 cents per share at 1:54pm EST.