Oracle Power shares were down 9.3% to 0.2p following the company’s reported positive metallurgical results from the first of three samples delivered from its 100% owned Northern Zone Gold Project in Western Australia, which indicated gold recoveries of 83.3% within six hours and up to 90.4% within 72 hours.
The Northern Zone is Oracle Power’s intrusion related gold system, and hosts wide gold mineralised felsic porphyry intrusions.
The mining firm announced that the metallurgical results would form the basis for moving forward with diamond and RC drilling to define a maiden inferred JORC resource, based on its previously reported Exploration Target of 200 to 250 mega-tonnes at 0.4 to 0.6 grams per tonnes in gold for 2.5 to 4.8 million ounces in gold.
Oracle Power confirmed its results included a composite sample based on strongly weathered felsic units with 30% quartz vein material, with a drill head grade at 0.9 grams per tonne in gold and very low copper content into solution.
“The positive metallurgy at Northern Zone is the next step for the Company to move the project forwards,” said Oracle CEO Naheed Memon.
“We have defined a large exploration target of 2.5 to 4.8Moz gold, and with the widths of mineralisation intersected in this and historical drill programmes, and now with an understanding of potential recovery, around 90%, this ensures we are in a strong position to move to the next step of increasing confidence in the tonnes and grade of the gold deposit.”
“Northern Zone is now a priority for the Company and the main focus of our activities in Australia. In line with this, our exploration teams will increase efforts on Northern Zone, moving from Jundee East, which has not returned the results required to warrant further work at the moment.”