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Oakdale Resources secures exploration licence in South Australian halloysite-kaolin hotspot

The Gibraltar Halloysite Kaolin Project sits adjacent to Andromeda Metals’ Mt Hope Halloysite Project and is considered highly prospective for potential halloysite mineralisation.

Oakdale Resources Ltd - Oakdale Resources secures exploration licence in South Australian halloysite-kaolin hotspot
Oakdale plans to carry out initial reconnaissance aircore drilling at Gibraltar this month.

Oakdale Resources Ltd (ASX:OAR) shares traded 35% higher yesterday to 2.8 cents after announcing the grant of an exploration licence EL 6505 in South Australia’s halloysite-kaolin hotspot on the Eyre Peninsula.

Gibraltar lies to the north of and adjacent to Andromeda Metals Ltd’s (ASX:ADN) Mt Hope Halloysite Kaolin Project and in proximity to that company’s Great White project, both of which have returned highly encouraging recent results.

These have seen an increase in market cap from $13 million when it first commenced exploring the Great White Kaolin Project in 2018, to more than $263 million post the publication of a pre-feasibility study on the project, which outlined the economic model for the proposed mine.

High-value applications

Halloysite-kaolin represents a very high-grade type of kaolin which has many high-value product applications such as in porcelain and ceramics, paint and polymers, as concrete additive and as a feedstock for High Purity Alumina (HPA) which can fetch end-use prices north of $25,000 per tonne.

The occurrence of pure form Halloysite is rare to find on Earth and known deposits are in production decline.

Gibraltar project location map.

An east-west traverse of shallow drilling completed in the project area by Monax Mining Ltd in 2007 confirmed highly weathered granitic basement lithologies, with geological logs from multiple drill holes reporting moderate thicknesses of kaolin mineralisation close to surface.

Mineralisation identified

Portable Infrared Mineral Analyser (PIMA) data included in the Monax drilling report indicates that both kaolinite and halloysite mineralisation has been identified in drilling activity on site.

Andromeda recently reported results from an initial 40-hole aircore drilling program including “significant bright white kaolin intersections (above 80 ISO Brightness)” from its Mount Hope Project.

Gibraltar potential

Oakdale will explore Gibraltar to determine the extent of continuation of the Mount Hope mineralisation into the EL which is only 16 kilometres north and along strike.

The company believes Gibraltar has significant potential for halloysite kaolin and has submitted applications to the SA Dept of Energy and Mining to complete initial reconnaissance aircore drilling over this area to confirm the historical drilling results.

Suitable drilling contractors have been identified, with drilling anticipated to be completed in late October 2020, pending final approvals.

Quick facts: Oakdale Resources Ltd

Price: 0.023 AUD

Market: ASX
Market Cap: $37.47 m

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