Sydney - Wednesday - Jan 19: (RWE Australian Business News) -...

Sydney - Wednesday - Jan 19: (RWE Australian Business News) -
Xanadu Mines Ltd (ASX:XAM) has commenced a scoping study into the
options and costs for developing a mining operation at the Galshar coal
project in Mongolia.
Galshar has an exploration target in the range of 175mt to 225mt
of thermal coal.
Selection of consultants to assist with the study will be
finalised in the near term, and it is expected that the study will then
take some four months to complete.
At this time a prefeasibility study will be started to gain a
tighter control on costs and process methodology.
Concurrent with the scoping study, an aggressive exploration
program aimed at delineating further resources within the entire project
area will be undertaken.
Currently only a small area of the total ground holding has been
explored and an ongoing widespaced drilling program will systematically
work through the known coal basin targeting further coal resources.

*****

Following the completion of a scout drilling program in late
2010, Xanadu has earned a 51pc equity interest in Altan Xanadu LLC,
owner of the "highly prospective" Elgen-Zos gold project, about 30km
from the Chinese border.
The Joint Venture area was recently expanded with the
acquisition of two new licences, bringing the total area of exploration
licences held to 417 sq km.
These two licences are contiguous with the previous ground
package and help consolidate Xanadu's land holding over the Elgen-Zos
area.
Within the recently acquired licences, earlier exploration
focused on the Suug prospect, an area of altered sedimentary rocks with
strongly anomalous gold, antimony and mercury rock samples.
Diamond drilling was undertaken late in the year to test targets
generated from the available geology and CSAMT resistivity survey lines.
One hole was drilled on a CSAMT target southwest of the Suug
prospect. The remaining drilling focused on the immediate Elgen area.
Assay results have yet to be received.

Reuters.