Oakdale Resources Ltd (ASX:OAR) has made a “transformative” acquisition of a project in proximity to the recent high-grade Julimar discovery in a new PGE-nickel-copper province 60-70 kilometres from Perth.
The acquisition of 100% of Australian Precious Minerals Pty Ltd (APM) includes the Crown PGE-Nickel-Copper Project, which is less than 8 kilometres from Chalice Gold Mines Limited (ASX:CHN) Julimar Complex.
Crown is on a 93 square kilometre exploration licence (E70/5406) and covers a series of prominent magnetic structures similar to and extending from Chalice’s property and which have not been drill tested.
“Exceptional value”
This area within the Yilgarn Craton has been demonstrated by Chalice to be an entirely new PGE-nickel-copper province with the potential for multiple Julimar analogues and extensions.
Oakdale executive chairman Chris Gale said: “This acquisition is exceptional value and puts Oakdale well and truly in strike of a significant PGE-nickel-copper-gold project, given the location and geological setting in the Yilgarn.
“This is rich ground and we expect there will be multiple targets to uncover.”
Oakdale views acquiring APM and Crown as being “transformative for the company”.
Portfolio of value projects
As well as Crown, the company’s portfolio includes:
- Lambarson Canyon Gold target, Nevada, United States;
- Chimu gold plant in Peru at which permitting is underway; and
- Kaolin-halloysite tenement adjacent to Andromeda Metals’ Mt Hope project.
For a tiny market cap company, this represents a portfolio of value projects all of which on their own may be ‘transformative’ and worth multiple times the current market cap.
Shares have been as much as 66% higher to 0.5 cents intra-day.
Location of Australian Precious Minerals tenement in relation to Chalice Gold Mines tenements.
The APM exploration project E70/5406, within the western edge of the Yilgarn Craton, is under application and is expected to be granted within 12 weeks.
Broad PGE-nickel-copper intersections
It adjoins the Chalice tenure that is the site of recent high-grade, broad intervals of PGE-nickel-copper mineralisation.
Chalice’s intervals, which remain open in all directions, point to a regional-scale discovery that may extend far beyond its initial lateral delineation.
Geological analogues such as the Jinchuan Nickel Mine in China demonstrate what may be found beneath disseminated sulphide zones.
The basement geology in the region is poorly explored and previously misunderstood, with the GSWA failing to identify the intrusive complex, instead having interpreted the Julimar site as granitic.
Chalice’s exploration successfully tested the potential of a mafic-ultramafic layered intrusive complex based on high-resolution magnetics and considered it prospective for platinum group elements (PGE), nickel and copper despite not ever having been explored for these metals.
Potential for Julimar extensions
Considering the presence of analogous magnetic structures on-trend from Julimar, the open nature of that discovery, close proximity to new high-grade assays and the absence of previous drilling, APM believes Crown has potential to host an extension or repeat of a similar polymetallic ore body.
Following settlement of the acquisition, Oakdale will begin discussing access arrangements with landowners and conduct airborne and geochemical exploration.
These initiatives will be designed to pinpoint the most prospects drill targets with drilling to commence upon project grant and drill permits.
Gale added: “We look forward to progressing this acquisition through approvals and into exploration.”
The acquisition will be settled through issuing:
- 35 million fully paid ordinary shares in Oakdale on receiving shareholder approval;
- 27 million fully paid ordinary shares in Oakdale on the granting of the tenement application; and
- 27 million fully paid ordinary shares in Oakdale on the granting of the drilling program approval by the WA Mines Department.