LONDON (ShareCast) - (Sharecast News) - Natural resources project developer Oracle Power reported positive assay results from the maiden drilling programme at the Northern Zone Gold Project, 25 kilometres east of Kalgoorlie in Western Australia, on Wednesday.
The AIM-traded firm said the first phase of reverse circulation (RC) drilling successfully targeted gold mineralisation within a series of stacked porphyry intrusions.

It said an exploration target based on historical results, and the results of the recent seven drill holes, indicates 200 to 250 million tonnes at 0.4 to 0.6 grams of gold per tonne, for 2.5 to 4.8 million ounces of gold.

Oracle said significant results included nine metres at 1.34 grams of gold per tonne from 54 metres at hole 21OPRC001, three metres at 1.43 grams per tonne from 51 metres on hole 21OPRC002, and three metres at 0.98 grams per tonne from 63 metres in hole 21OPRC002.

The company also highlighted 19 metres at 0.81 grams of gold per tonne from 63 metres at hole 21OPRC003, and 154 metres at 0.58 grams per tonne from 98 metres on hole 21OPRC004, including four metres at 5.39 grams per tonne from 182 metres.

Oracle Power said the Northern Zone was correctly interpreted as an intrusion-related gold system (IRGS), with wide gold mineralised felsic porphyry intrusions.

It explained that IRGS deposits can host "significant" ounces of gold, such as Boddington Goldmine in Western Australia, Fort Knox in Alaska, Dublin Gulch in the Yukon, and Timbarra in New South Wales.

Second-phase drilling was planned to target extensions to the RC holes, and additional diamond drilling and RC holes, to gain a better understanding of the geometry and extent of the deposit.

"The gold system we have encountered at Northern Zone has significant scale, and with the widths of mineralisation intersected in this and historical drill programmes, gives us confidence to move the project forward with the next phase of drilling," said chief executive officer Naheed Memon.

"This is a huge achievement and gives us the first tangible sense of what a significant gold mining project Northern Zone could become.

"I'm also pleased to advise that the Jundee East drill programme is due to start later this month with a drill rig secured and onsite geological services to be provided by BMGS Consulting."

At 1244 GMT, shares in Oracle Power were up 1.6% at 0.48p.

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