Oakdale Resources Ltd’s (ASX:OAR) diamond drilling at the Lambarson Canyon Project in the prolific gold territory of Nevada, USA, is progressing well with observations of initial drill core proving highly encouraging.
Observations of core from the first hole indicate that the geology is consistent with the structural target zone which hosts the gold mineralisation at surface.
Further encouragement comes from the construction of site access tracks to the IP target drill pad which has exposed outcrop of altered intrusive rocks containing quartz veining and weathered sulphides.
Highly encouraging result
Rock types identified in the first hole with a planned depth of around 250 metres include metasediments, porphyry and breccia units with rounded and milled fragments.
The identification of a milled breccia unit in the core is highly encouraging, and Oakdale geologists believe it can be correlated with the surface outcrop.
Previous outcrop channel sampling across this structure returned high-grade results, including 3 metres at 6.97 g/t gold while a nearby float sample returned 61.6 g/t.
Drilling is proceeding through this highly broken ground at a steady pace to maintain maximum core recovery.
Reconnaissance geological mapping has been carried out in the vicinity of the southern geophysical (IP) target, to take advantage of new bedrock exposures along the new road-cutting to this drill site.
Altered felsic intrusive rocks with quartz veins and euhedral oxides (after sulphides) have been mapped along the road cutting.
Additional detailed mapping and outcrop sampling work across the project area are in progress aimed at providing a better understanding of the localised structures and alteration associated with the mineralised system.
Well-funded for program
Oakdale is well-funded for the work after recently placing 104,761,905 shares at 2.1 cents to raise $2.2 million from institutional funds and professional and sophisticated investors.
These funds will be allocated raised to complete drilling at Lambarson Canyon and at Douglas Canyon.
The Lambarson Canyon Project is in northern Nevada where Oakdale is targeting intrusion-related and distal disseminated gold mineralisation, similar to million-plus ounce gold deposits in the Battle Mountain-Cortez and Getchell trends.