Xanadu Mines Ltd. announced that the first diamond drill hole following up shallow bedrock drilling has discovered a new porphyry named Altan Burged (Golden Eagle) within the Kharmagtai copper-gold district, in the South Gobi region of Mongolia, by intersecting a broad zone of near surface gold-rich porphyry copper mineralisation. Diamond drill hole KHDDH395 intersected 220m grading 0.64g/t Au and 0.15% Cu from 42m, which includes a shallow zone of supergene gold enrichment of 26m grading 2.27g/t Au from a depth of 42m. The newly discovered Altan Burged porphyry is located approximately 2.5km east of the Altan Tolgoi, Tsagaan Sudal and Zesen Uul copper-gold deposits. The gold-rich Altan Burged porphyry was discovered in December 2016 as part of the highly successful bedrock drilling programme. The intersection in KHDDH395 represents a significant development for Xanadu's ongoing exploration efforts within the Kharmagtai district. While exploration of this emerging porphyry centre is still at an early stage, the width, intensity of alteration and porphyry stockwork mineralisation and tenor of the gold mineralization intersected is very encouraging. The first diamond drill hole at the Altan Burged porphyry centre, KHDDH395 intersected 220m grading 0.64g/t Au and 0.15% Cu from 42m (top of basement), which includes 102m grading 1g/t Au and 0.16% Cu from 42m. This broad intercept includes a shallow zone of supergene gold enrichment of 26m grading 2.27g/t Au from 42m. Both oxide and primary gold and copper mineralisation have been intersected in KHDDH395. The shallow higher grade oxide mineralisation is hosted in a strongly silicified and clay altered zone above a quartz monzodiorite porphyry stock, with finegrained visible gold observed in core. Primary gold and copper mineralisation is associated with high density centreline quartz-sulphide veins and strong albitechloritepyrite alteration. This is a similar assemble to the high-grade Zesen Uul porphyry and is interpreted to be related to same porphyry mineralisation event, confirming a district-scale mineral event. Mineralisation remains open along strike and down dip with the hole finishing in low density stock work mineralisation grading higher than 0.2 g/t Au. The current exploration target dimensions are 500m long by 300m wide and initial drilling indicates that there is potential for Altan Burged to host a significant highgrade porphyry gold-copper deposit adjacent to the three outcropping porphyry deposits (Altan Tolgoi, Tsagaan Sudal and Zesen Uul; where Xanadu has already defined over 1.5 Mlb copper and over 2 million ounces of gold resource. Drilling will continue to delineate the near surface oxide enrichment zone and locate the highest-grade primary portions of this new porphyry discovery at Kharmagtai. As reported in the September quarterly, a soil survey was completed over approximately 40% of the Oyut Ulaan lease. Multi-element geochemical data from this survey has highlighted extensive Au and Cu anomalism across the entire survey area and vector elements within the data are assisting to define the scale of porphyry mineralisation across the lease. A total of 47 targets were identified, ranked and scheduled for trenching based on the size and amplitude of the anomalies. The results of this extensive trenching program will be available before the end of the month.