REG - Oracle Power PLC - Northern Zone: Completion of Diamond Drilling
21/08/2023 07:00
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RNS Number : 9027J Oracle Power PLC 21 August 2023
21 August 2023
Oracle Power PLC
("Oracle" or the "Company")
Northern Zone Update: Completion
of Diamond Drilling
Oracle Power PLC, an international project developer, is pleased to announce
an update in relation to further development of Northern Zone project by
Riversgold Limited ("Riversgold"). On 9 May 2023, Oracle announced signing of
a binding Heads of Agreement with ASX listed Riversgold to farm-in to licence
P25/2651, known as the Northern Zone Gold Project, located 26 km east of
Kalgoorlie in Western Australia (the "Northern Zone" or the "Project").
Riversgold has today announced it has completed its maiden diamond drilling
programme at the Northern Zone.
Drilling Highlights:
· Diamond drilling of entire central cross-section to 450m vertical
depth completed to validate exploration model
· Previously announced exploration target of 200Mt - 250Mt at a grade
of 0.4 g/t Au - 0.6 g/t Au for 2.5Moz - 4.8Moz of contained gold from
historical drilling
· Visible alteration on all holes exceeded initial expectations with
all four holes drilled deeper than planned
· Programme aim was to:
o Confirm the mineralisation style
o Mineralisation widths and gold grades
o Oriented core to gather structural orientation of the mineralisation
· Drill cores are now being moved to ALS in Perth for cutting,
photography and assay
CEO of Oracle, Naheed Memon, commented: "I am very pleased to see this
promising update on our Northern Zone asset from Rivergold. Prior to this,
Oracle's work at the Northern Zone, had established that the gold system
encountered at the project has potential scale, with a multi-million-ounce
gold exploration target. This has been substantiated today with very wide
zones of intense alteration in all four diamond drill holes demonstrating the
high gold prospectivity. We will eagerly await further updates on gold grades
and widths in due course.
"Following Oracle's initial exploratory work leading to the diamond drilling
programme, Riversgold took little time to get on the ground at Northern
Zone. With a local, and ASX listed partner who has exploration and
development expertise in the region, we are well placed to deliver for the
benefit of our shareholders, and we look forward to sharing further updates of
the results of the drilling as we work towards firming the gold prospect at
Northern Zone."
The announcement published by Riversgold today is set out below without
material adjustment and can be found at
https://www.riversgold.com.au/investors/asx-announcements/
(https://www.riversgold.com.au/investors/asx-announcements/)
"Riversgold Limited (ASX: RGL, Riversgold or the Company) announces that it
has completed its maiden diamond drilling program at the Northern Zone
Intrusive Hosted Gold Project located 26 km east of Kalgoorlie in Western
Australia. Refer to Figure 1 for location.
On the 9 May 2023, RGL announced the acquisition of an 80% earn-in to Northern
Zone. A 4 hole, 1,379m oriented core diamond drilling program has now been
completed and RGL expects to complete the earn-in commitments for the 80%
interest in the tenement, once the assays and reporting have been completed.
The Northern Zone Project has an Exploration Target of 200 to 250 million
tonnes at a grade of 0.4 g/t to 0.6 g/t for an exploration target of 2.5 to
4.8 million oz of Gold, announced by RGL to the ASX on the 9 May 2023.
Cautionary Statement: The potential quantity and grade of the Exploration
Target is conceptual in nature. There has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further exploration will
result in the estimation of a Mineral Resource. The reader is advised that an
Exploration Target is based on existing drill results and geological
observations from drilling as well as interpretation of multiple available
datasets. The exploration target is based on historical and Oracle drilling
results. It uses data from 53 historical drillholes drilled between 1998 and
2012, and 7 drillholes drilled by Oracle in 2021. Refer to Appendix 1 for
further information with respect to these exploration results.
The initial aims of the first phase of diamond drilling exploration at
Northern Zone are to confirm the mineralisation style, confirm the very wide
widths of gold mineralisation seen previously in the RC Drilling, and confirm
gold grades and gold distribution. Secondly, the aims are to generate mineral
orientation and structural information and lastly to generate sufficient core
to allow for both metallurgical studies and allow for the geophysical
characterisation of the core with the view of potential using this information
to fast track and better define the size of the mineralised envelope, through
improved drill design. RGL is optimistic that all these aims and milestones
can be achieved from the drill core.
David Lenigas, Executive Chairman of RGL, said: "The very wide zones of
intense alteration in all 4 diamond drill holes on this X section demonstrates
the high gold prospectivity of the Northern Zone Project and endorses RGL's
investment in this project in a well-endowed Province, which is seeing the
emergence of intrusive related gold hosted mineralised systems as a genuine
host to gold mineralisation. The big questions on actual gold grades and
widths will be answered when ALS complete their work in their Perth facilities
over the coming weeks."
The Northern Zone Project is located 26km, east-south-east of the Kalgoorlie
Super Pit and is readily accessed from the Bulong road, which is paved to
within 9km of the prospect site. The last 9kms consists of 4km of a
high-quality haul road with the last 5kms on a station road. The topography is
flat lying, open scrub with several historical remnant gold and nickel
excavation pits less than 5 kms from the prospect site.
Drilling Contractor DDH1 completed the drilling at Northern Zone using a
combination of HQ3 and NQ2 diamond drilling. The core was logged by contract
geologists BMGS in Kalgoorlie, with oversight from RGL geologists. The
detailed logging showed that the host rock to the mineralisation is
structurally competent and tonalitic in composition. The mineralisation event
has introduced significant micro-fracturing and quartz veining, which acts as
the conduit for the significant thicknesses of silica, albite, hematite and
fine-grained pyrite alteration (Figure 2, Table 1). This style of alteration
is the typical alteration pattern associated with intrusive gold related
mineralisation. Internal to the broad zones of alteration are narrower zones
of more intense alteration and complete textural destruction of the host rock
(Figure 3).
Cautionary Statement: RGL has not yet quantitatively determined whether the
core is gold mineralised or not. The core photograph is provided to support
RGL's hypothesis that Northern Zone is likely to be an Intrusive Relative Gold
Deposit (IRGD) model where mineralisation occurs in microfractures associated
with hydrothermal fluids which is visually evident in the core and is
associated with alteration of the more brittle host rock. The diamond drill
holes are within a central drill section where RC drill results for gold were
previously reported (See ASX release 9 May 2023 "Farm into Significant
Porphyry Hosted Gold Project"
Next Steps
RGL will:
· Complete logging of the core,
· Undertake core cutting and sampling of the core,
· Complete interpretation of the geological and assay results upon
receipt of the assay results,
· Undertake further metallurgical test work if warranted,
· Undertake further drilling towards defining a resource at Northern
Zone.
Competent Persons Statement
The Information in this report that relates to exploration results,
exploration targets, mineral resources or ore reserves is based on information
compiled by Mr Allan Younger, who is a Member of the Australasian Institute of
Mining and Metallurgy. Mr Younger is a consultant to the company. Mr Younger
has sufficient experience which is relevant to the style of mineralisation and
type of deposits under consideration and to the activity that he is
undertaking to qualify as a Competent Person as defined in the 2012 edition of
the `Australian Code for Reporting Exploration Results, Mineral Resources and
Ore Reserves' (the JORC Code). Mr Younger consents to the inclusion of this
information in the form and context in which it appears in this report."
APPENDIX 1: Drilling Information
Table 1: Collar Locations for RGL's Phase 1 Diamond Drilling Program (MGA94
Z50)
Hole ID Easting Northing Dip/Azimuth RL Final Depth (m)
RSDD01 381675 6592555 -60/215 356 300
RSDD02 381775 6592715 -60/215 356 406
RSDD03 381835 6592795 -60/215 356 510.1
RSDD04 381595 6592555 -60/215 356 162.6
Table 2: Northern Zone Alteration Details
Hole ID Final Depth (m) Intense Alteration From (m) Intense Alteration To (m) Intense Alteration DH Width (m) All Alteration From (m) All Alteration To (m) All Alteration DH Width (m)
RSDD01 300. 209 262 53 73 297 224
284 296 12
232 260 28
RSDD02 406 137 140 3 115 406 291
266 278 12
280 322 42
338 343 5
349 351 2
402 405 3
RSDD03 510.1 252 262 10 87 502 415
277 310 33
419 423 4
436 442 6
449 458 9
RSDD04 162.6 131 154 23 25 155 130
APPENDIX 2
The following Tables are provided to ensure compliance with the JORC Code
(2012 Edition) requirements for the reporting of Exploration Results at
Northern Zone.
Section 1: Sampling Techniques and Data
(Criteria in this section applies to all succeeding sections)
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · The samples were whole core HQ3 or NQ2 sized, with roller
specific specialised industry standard measurement tools appropriate to the pre-collars.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · The core is yet to be cut or assayed and as such no statements as
meaning of sampling. to mineralisation within the core can be made.
· Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems used.
· Aspects of the determination of mineralisation that are Material to
the Public Report.
· In cases where 'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed
information.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · Diamond core HQ3 or NQ2 sized, with roller pre-collars. The core
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or has been oriented with standard and modern down hole orientation techniques.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc).
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · Recovery logs were recorded by the field geologist. Recovery was
and results assessed. excellent even through broken ground.
· Measures taken to maximise sample recovery and ensure
representative nature of the samples.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Logging · Whether core and chip samples have been geologically and · The core has been professionally logged by Kalgoorlie based
geotechnically logged to a level of detail to support appropriate Mineral consultant and contract geologists with oversight from RGL geologists. 100% of
Resource estimation, mining studies and metallurgical studies. the core has been logged.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
· The total length and percentage of the relevant intersections
logged.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · The core is currently still whole and has not been sampled. It will
taken. be sampled as half core at the completion of full geological and structural
logging.
· If non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry. · No sub sampling has been applied to the core.
· For all sample types, the nature, quality and appropriateness of
the sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
· Measures taken to ensure that the sampling is representative of the
in situ material collected, including for instance results for field
duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the
material being sampled.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · The core is yet to be submitted to the laboratory for assaying.
laboratory procedures used and whether the technique is considered partial or
total.
· For geophysical tools, spectrometers, handheld XRF instruments,
etc, the parameters used in determining the analysis including instrument make
and model, reading times, calibrations factors applied and their derivation,
etc.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established.
Verification of sampling and assaying · The verification of significant intersections by either independent · The core is yet to be submitted to the laboratory for assaying.
or alternative company personnel.
· The use of twinned holes.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · The collar position of each hole was recorded using handheld GPS.
and down-hole surveys), trenches, mine workings and other locations used in The down hole survey data was taken at 30m using standard down hole gyro
Mineral Resource estimation. tools.
· Specification of the grid system used.
· Quality and adequacy of topographic control.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · The holes were drilled on a single section, between existing RC
holes. This spacing is sufficient to establish grade and geological continuity
· Whether the data spacing and distribution is sufficient to of this particular drill section.
establish the degree of geological and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation procedure(s) and classifications
applied.
· Whether sample compositing has been applied.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · This is currently unknown, as RGL is yet to assay the core and
possible structures and the extent to which this is known, considering the final detailed logging is ongoing.
deposit type.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. · The core was collected from the rig by BMGS contract geologists and
stored securely in their Kalgoorlie yard where it was logged. The core was
then strapped and wrapped and shipped via commercial transport to ALS in
Perth.
Audits or reviews · The results of any audits or reviews of sampling techniques and · Data reviews will be conducted when all of the final assay results
data. have been received from the lab.
Section 2: Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · The Northern Zone Project is comprised of one granted prospecting
agreements or material issues with third parties such as joint ventures, licence (P25/2651) which covers an area of 82 hectares, and is held in the
partnerships, overriding royalties, native title interests, historical sites, name of Oracle Gold (WA) Pty Ltd.
wilderness or national park and environmental settings.
· RGL are farming into the Tenement and following this program are
· The security of the tenure held at the time of reporting along with expected to have earned an 80% interest.
any known impediments to obtaining a licence to operate in the area.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · See reference in the body of the announcement.
· The majority of previous exploration in the area was by Northern
Mining during 2007 to 2012 under the Blair North project, multiple small
resource areas were identified at the George's Reward area to the south of
P25/2651. Numerous intersections were made within the area of the PL including
BNRC066 listed below.
Geology · Deposit type, geological setting and style of mineralisation. · The deposit sought is IGR style of mineral deposit.
Drill hole Information · A summary of all information material to the understanding of the · No assays of the drill holes have been submitted or assayed yet.
exploration results including a tabulation of the following information for The Drill Hole logs will be completed once the assay have been received.
all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of
the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · As there has been no assay data received, no data aggregation has
maximum and/or minimum grade truncations (eg cutting of high grades) and been applied to the assay grades and no metals equivalence calculations have
cut-off grades are usually Material and should be stated. been undertaken.
· Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · As RGL has not undertaken any assaying yet no comment can be made
Exploration Results. about mineralisation widths.
· If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (eg 'down hole length, true
width not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of · See body of the announcement for relevant diagrams and photos.
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · No assay grades are reported in this announcement, and reference to
practicable, representative reporting of both low and high grades and/or alteration is to indicate the style of mineralisation or potential deposit
widths should be practiced to avoid misleading reporting of Exploration type.
Results.
· The reporting of exploration results is considered balanced by the
competent person.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · See body of the announcement
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral · The initial aims of the first phase of diamond drilling exploration
extensions or depth extensions or large-scale step-out drilling). at Northern Zone are to confirm the mineralisation style, confirm the very
wide widths of mineralisation seen previously on the central section that the
· Diagrams clearly highlighting the areas of possible extensions, diamond drilling has been completed on, and confirm gold grades and gold
including the main geological interpretations and future drilling areas, distribution. Secondly, the aims are to generate mineral orientation and
provided this information is not commercially sensitive. structural information and lastly to generate sufficient core to allow for
both metallurgical studies and allow for the geophysical characterisation of
the core with the view of potentially using this information to fast track and
better define the size of the mineralised envelope, through improved drill
design.
*ENDS*
For further information on Oracle Power PLC, visit the Company's
website http://www.oraclepower.co.uk (http://www.oraclepower.co.uk/) or
contact:
Oracle Power PLC
Naheed Memon - CEO
+44 (0) 203 580 4314
Strand Hanson Limited (Nominated Adviser and Broker)
Rory Murphy, Matthew Chandler, Rob Patrick
+44 (0) 20 7409 3494
St Brides Partners Limited (Financial PR)
Susie Geliher, Isabel de
Salis
+44 (0) 20 7236 1177
About Oracle Power PLC:
Oracle Power PLC is an international natural resource and power project
developer quoted on London's AIM market. The Company currently has two areas
of focus: Western Australia and Pakistan. The Company is active in the energy
industry in Pakistan and is working to establish one of the largest green
hydrogen production facilities in the region.
About Northern Zone Project:
The Northern Zone Project is comprised of one granted prospecting licence
(P25/2651) which covers an area of 82 hectares (Figure 1). The Project is
located in an area highly prospective for gold and is approximately 25km east
of Kalgoorlie, the home of the 'Super Pit' mine, the second largest gold mine
in Australia.
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