Xanadu Mines Limited advised an initial 5,000m diamond drilling programme to test five main target areas at the highly prospective 100% owned Red Mountain copper and gold Project in the South Gobi region of Mongolia is now underway, with drilling expected to be completed by mid-May, and all assays available by end-June. Five thousand meters of drilling has been designed to test five shallow high-grade gold and copper-gold targets across the Red Mountain Lease (Figures 1 and 2). Drilling is targeting: Shallow gold at Target 33, High-grade copper sulphide lodes at Target 10, and Shallow porphyry targets at Nowie, Stockwork and Bavuu.

Target 33 is a 1,000-metre-long and 100-wide-zone of alteration and anomalous gold mineralisation associated with an east west trending intrusion. Trenching and limited reverse circulation drilling in 2017 encountered significant widths of gold mineralisation. Current Drilling Program: Five shallow diamond drill holes have been planned to test a 300m strike across the center of the gold anomalism at Target 33.

Follow-up drilling will be planned once interpretation of the initial results has been completed. Current Drilling Program: Three shallow drill holes and one deeper drill hole are planned to follow up on these results. Shallow holes are targeting around the high-grade copper intercept in OUDDH089 and are designed to determine the orientation of this zone, with the aim of delivering further expansion.

A single deeper hole is planned to scissor the broad porphyry intercept in OUDDH090, testing the theory that this is associated with a south dipping structure, clearly visible in the magnetics. Bavuu Porphyry was first identified in 2016 as a large-scale copper and gold soil anomaly. Trenching completed in 2016 returned very broad porphyry intercepts of copper and gold mineralisation: 188m @ 0.24% Cu and 0.18g/t Au; 52 m @ 0.36% Cu and 0.22g/t Au; 220m @ 0.15% Cu and 0.16g/t Au.

Two shallow reverse circulation drill holes were drilled under OUCS030A with the deeper hole returning; 168m @ 0.22% Cu and 0.25g/t Au from surface; 32m @ 0.31% Cu and 0.4g/t Au from 132m. Current Drilling Program: Two diamond drill holes have been designed to test behind this intercept and along strike to the west. No work has previously been conducted at Nowie by Xanadu.

However, multiple drill hole collars and trenches from previous explorers are visible at surface. Soil sampling at Nowie has defined a 500m long copper in soil anomaly greater than 0.1% Cu and 0.25g/t Au. Geological mapping has identified strong oxide copper at surface associated with porphyry veining.

Current Drilling Program: Three diamond drill holes have been designed to test beneath the 500m strike of surface mineralisation. Stockwork Porphyry ? Porphyry Cu-Au Target: Limited work has previously been conducted at Stockwork by Xanadu.

However, like the Nowie propsect, multiple drill hole collars and trenches from previous explorers are visible at surface. Soil sampling at Stockwork has defined a 650m long copper in soil anomaly greater than 0.05% Cu. Geological mapping has identified strong oxide copper at surface associated with intense porphyry veining and a reinterpretation based on this mapping has suggested an alternative orientation to drill test for the system at Stockwork.

Current Drilling Program: Three shallow diamond drill holes have been designed to test this target.