The acquisition of Crown’s holder Australian Precious Minerals Pty Ltd (APM) sees Oakdale owning a 93 square kilometre exploration licence within a new PGE-nickel-copper province on the western edge of Yilgarn Craton.
This province, which is around an hour’s drive northeast of Perth, has attracted strong attention since the Julimar discovery by Chalice Gold Mines Limited (ASX:CHN) (OTCMKTS:CGMLF).
Network of magnetic structures
Oakdale’s Crown project is underlain by an extensive network of magnetic structures similar to and extending from those that host the Julimar Complex, which is around 8 kilometres to the east.
Executive chairman Chris Gale said: “The Oakdale board is very excited to have completed this acquisition which has potential to be a major impact project for the company and for shareholders.
“This acquisition has exceptional value and puts Oakdale well and truly in strike of a significant PGE-nickel-copper project, given the location and geological setting in the Yilgarn.”
Oakdale views acquiring APM and Crown as transformative and will be fully funded following the recent $1.4 million capital raise via entitlement offer to conduct aggressive exploration of this new asset.
The acquisition of APM and exploration licence E70/5406 was completed after Oakdale received shareholder approval.
The Crown tenement and Julimar tenement to the right with location of discovery hole marked.
Oakdale will now move to permitting and access to the tenement for start of the exploration activity with Crown having not yet been drill tested.
The company is confident that there is the potential for Julimar analogues and extensions on its tenement.
Exploration licence E70/5406 is under application and is about to enter the Native title advertisement and negotiation period as part of that process.
Oakdale will continue access discussions with landowners with the aim to conduct airborne and non-ground disturbing reconnaissance exploration.
These exploration initiatives will be designed to pinpoint the most prospective drill targets to be investigated upon grant of the licence and receipt of necessary approvals.
As such, the company is developing an initial exploration plan that it will undertake once the project has been granted.
Gale added: “This is rich ground and we expect there will be multiple targets to uncover. Our geologists will be very keen to get on the site immediately, once tenement and access are granted.”
Aerial magnetics showing Crown PGE-Nickel-Copper Project to the left of the Julimar discovery hole.
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.
Exploration by Chalice 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.
Chalice’s broad PGE and nickel-copper 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.
Considering the presence of analogous magnetic structures similar to Julimar, the open nature of the Julimar Discovery, the proximity to new high-grade assays, and the absence of previous drilling, Crown has potential to host a significant polymetallic ore body.