Xanadu Mines Ltd. plans to soon commence drilling at its Javkhlant metallurgical coal exploration project, as part of its strategic alliance with Noble Group Limited.

“For the first time out drilling program will run right through the Mongolian winter, with results released progressively over the next three months,” said Chairman Brian Thornton.

The joint venture company Enkhgoviin Chuluu LLC can earn up to 80 percent of the Javklhant coal exploration license by meeting various spending commitments over two years. The large 1,005-square-kilometer exploration license is located in the South Gobi Basin. The basin is known is known for its thermal and coking coal deposits. The Javkhlant opportunity was recognized as part of a regional reconnaissance exploration program targeting coking coal, conduced by Xanadu's geologists over the last 18 months.

The project is located in the south west of Gobi Altai Aimag, approximately 22 kilometers from the Burgastai border crossing point into China and only 200 kilometers from the Chinese rail network at Hami. Xanadu is a Mongolian exploration company with two thermal coal assets, Galshar and Khar Tarvaga.