Oracle Power PLC has announced that it has secured an exclusive option to acquire 100 per cent of a copper and silver mining project in the Ashburton Basin.
The international project developer entered into an option and sale purchase agreement with Mining Equities relating to its Blue Rock Valley Copper and Silver Project.
The project tenement covers 32 Blocks (approximately 102km2) and is composed of one exploration licence, E08/3604, wholly owned by Mining Equities. The tenement was granted on 2 October 2023 and expires on 26 October 2028, but is renewable. The first term is therefore five years with a possible initial extension of five years and further extensions of two years thereafter, with 40 per cent of the licence area to be surrendered at the end of year six.
Under the terms of the agreement, in consideration for Mining Equities granting the option to Oracle, the company will pay a fee of £30,000 by way of the issue of 136,986,301 new ordinary shares of 0.001 pence each in the capital of Oracle, determined using the volume weighted average price (VWAP) for the five business day period immediately prior to signing of the agreement. The option has a term of 45 days commencing from the date of execution of the agreement.
During the option term, Mining Equities has agreed to use all reasonable endeavours to provide Oracle with the data and relevant information on the tenement for Oracle to conduct its due diligence exercise.
If Oracle elects to exercise the option to acquire a 100 per cent interest in the tenement, the company will pay consideration of £200,000 to Mining Equities, through the issue of a further 913,242,009 new ordinary shares, determined using the five-day VWAP.
Should Oracle elect to exercise the option, the transfer of the tenement from Mining Equities to Oracle would be subject to and conditional on Oracle obtaining the prior written consent of the Western Australian Minister of Mines and Petroleum.
Any issue of new ordinary shares to Mining Equities under the terms of the agreement shall be subject to a three-month lock-in period from their date of issue.
Mining Equities has not published any statutory financial statements since it acquired the tenement but has incurred costs associated with the tenement of AU$53,830, which have all been capitalised in its unaudited management accounts.
Assays from historical drilling and rock chip sampling at the site suggest the presence of high-grade copper and silver mineralisation, as well as the potential for uranium.
Significant historical rock chip samples collected in the vicinity of the project area by Jackson Minerals between 2007 and 2010 comprise:
- BRR011: 49.9 per cent copper (Cu), 4.93g/t silver (Ag)
- J45413: 10.7 per cent Cu
- BRR012: 37.6 per cent Cu, 6.69g/t Ag
- J45438: 9.09 per cent Cu, 20.5g/t Ag
- BRR013: 16.05 per cent Cu, 4.34g/t Ag
- J45441: 7.89 per cent Cu
- BRR014: 14.85 per cent Cu, 2.82g/t Ag
- J45436: 6.6 per cent Cu
- BRR015: 11.75 per cent Cu, 2.37g/t Ag
- J45414: 4.98 per cent Cu, 4.1g/t Ag
Historical Reverse Circulation drilling returned the following results:
- Hole BBRC005: 4m at 1.02 per cent Cu from 0m
- Hole BBRC004: 8m at 0.54 per cent Cu from 6m (including 1m at 1.39 per cent Cu from 10m)
Electromagnetic (EM) geophysics as versatile time domain electromagnetic (VTEM) (airborne) and fixed loop transient electromagnetic surveying (FLTEM) (surface) studies have defined various drill targets at the site.
An electromagnetic anomaly near to the location of the prior work undertaken is undrilled and untested and sits in a syncline of sedimentary rocks that are potentially ideal for base metals (copper, lead, zinc) and silver to be deposited.
Further targeting tools to be assessed to refine and develop targets before drilling is undertaken.
Gold and uranium are also being targeted as these deposit types occur within the Ashburton Basin.
Oracle’s CEO, Naheed Memon, said, “The option over a base metal and silver project in Western Australia of this magnitude represents a great opportunity for Oracle. Due diligence will be completed over the coming weeks and an assessment of the best exploration tools to move the project forward will be undertaken by our technical team.
“The project area is also highly prospective for gold, with the Eastern Hills Gold Project 11km to the north and the famous Paulsen Gold Mine 42km to the north-north-east. A number of uranium projects are also nearby, including Paladin’s 25.9Mlb uranium project and Cauldon’s 30.9Mlb uranium deposit, indicating potential sediment hosted uranium near hot granites in the Ashburton Basin.”
The Blue Rock Valley Copper and Silver Project Project is located 165km southeast of Onslow, a multi-user port and the main port for the region’s iron and LNG exports. The project site is accessed from the North West Coastal Highway on a well-maintained unsealed road.
