The project is located in the southwestern Gobi Altai province along the southern border of China and is 200km from the Chinese rail network at Hami.
The 1005sq.km exploration licence has the potential to host large thermal and coking coal deposits, suitable for the Chinese market.
To date, reconnaissance mapping and exploration has identified numerous coal and carbonaceous mudstone subcrops at the project, over approximately 40km.
The alliance’s joint venture vehicle, Ekhgoviin Chuluu LLC, can earn up to 80% of the Javkhlant coal exploration licence by meeting various spending commitments over 2 years, including completion of a defining JORC-compliant resource at the tenement.
Xanadu’s chairman Brian Thornton said the drilling program would run throughout the cooler months.
“For the first time, our drilling program will run right through the Mongolian winter, with results released progressively over the next three months,” he said.