TIDMORCP
RNS Number : 3462F
Oracle Power PLC
16 November 2020
To view the announcement with illustrative maps and diagrams
please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3462F_1-2020-11-14.pdf
16 November 2020
Oracle Power PLC
("Oracle", or the "Company")
Acquisition of Two Highly Prospective Gold Projects in Western
Australia
Oracle Power PLC, the AIM listed natural resources and power
project developer, is pleased to announce the acquisition of two
highly prospective gold projects in Western Australia. The
acquisition of these assets, which are both located in world class
gold mining districts, advances the Company's strategy to become an
international developer of high quality natural resources and power
projects, offering investors exposure to multiple commodities and
value trigger events.
Overview:
-- Acquisition of two highly prospective gold projects located in Western Australia:
o The Northern Zone Project is located 25km east of the major
gold mining centre of Kalgoorlie, the home of the 'Super Pit' mine,
the second largest gold mine in Australia
-- Multiple significant drill intercepts recorded from
historical drill programmes conducted by Northern Mining Limited,
with some of the more notable intercepts including:
-- 9m @ 5.06 grams per tonne gold ("g/t Au") - hole BNRC017
-- 1m @ 39.82 g/t Au - hole BNRC033
-- 3m @ 3.72 g/t Au - hole BNRC067
-- 2m @ 23.27 g/t Au and 40m @1.2 g/t Au - hole BNRC069
-- 6m @ 2.12 g/t Au and 2m @ 12.98 g/t Au - hole BNRC051
-- 3m @ 3.72 g/t Au - hole BNRC067
-- 30m @ 1.5 g/t Au - hole BNRC081
-- 217m @ 0.51 g/t Au - hole BNRC066
-- 10m @ 2.1 g/t Au - hole BNRC079
-- 6m @ 2.31 g/t Au and 3m @ 2.85 g/t Au - hole BNRC080
-- 28m @ 0.84g/t Au and 48m @ 1.65g/t Au (including 4m at 7.7g/t Au) - hole BNRC095
o The Jundee East Project is located about 9km east of Northern
Star's Jundee Gold Mine, one of Australia's largest gold mines
-- Potential new buried greenstone belt identified from gravity
modelling, highlighting prospective new target areas for gold
exploration at Jundee East very close to one of Australia's Tier 1
gold mines
-- Acquisition of the Northern Zone Project and Jundee East
Project satisfied by a payment of GBP90,000 in cash and the issue
of 42,857,143 new ordinary shares of 0.1 pence each in the capital
of the Company ("Ordinary Shares") (the "Consideration Shares")
o Warrants to subscribe for 42,857,143 Ordinary Shares in the
Company exercisable at a price of 1.1p for 24 months from issue
will also be issued to the vendor (the "Warrants")
-- Both the Consideration Shares and any new Ordinary Shares
issued pursuant to the exercise of the Warrants will be subject to
a three-month lock in
-- Acquisition of gold interests complements the Company's
flagship Thar Block VI Project in Pakistan and the Company's
evaluation of opportunities in Africa.
Naheed Memon, CEO of Oracle, commented :
"To secure a deal on these assets in Western Australia is a very
significant and exciting new development for Oracle. The Northern
Zone Project is essentially drill ready and the Jundee East Project
has the potential to discover gold mineralisation in a newly
identified greenstone belt that has very similar geophysical
signatures to the nearby Jundee Gold Mine.
"Gold is a commodity which we believe has the potential to
generate significant returns for the Company and our shareholders,
and Western Australia is, from both a geological and political
standpoint, perhaps the optimal region globally to develop a new
gold mine. Securing these assets for a modest cash and equity
consideration, is, I believe an exceptional find for Oracle
investors and I am excited of report updates in the future as we
look to prove up these projects and demonstrate their potential to
become standalone gold mines.
"Furthermore, the acquisition of these projects significantly
strengthens our investment proposition and appeal to new investors.
Combining gold exploration with our flagship Thar Block VI Project
in Pakistan, which is intended to include a coal mine, mine mouth
power plant, coal gasification plant (for urea/fertiliser) and
coal-to-liquid processing for liquid fuel, in addition to the
evaluation work we are undertaking with The Private Office of His
Highness Sheikh Ahmed Bin Dalmook Al Maktoum in Africa, has the
potential to establish Oracle as a multi-commodity, multiple
revenue stream business in the future."
Further Information
Background on the Assets
Oracle engaged Mining Insights Pty Ltd ("Mining Insights") to
prepare an Independent Technical Review of the Northern Zone
Project and Jundee East Project (together "the Projects"). The full
report from Mining Insights is available on the Company's website
at
http://www.oraclepower.co.uk/operations/west-australia-gold-assets/.
The discussion set out below is summarised from this report and its
contents have been approved for release by Mining Insights.
Jundee East Project:
The Jundee East Project is comprised of one exploration licence
under application (E53/2140) and located about 9km due east of the
Jundee Gold Mine. The project area comprises 29 blocks, covering an
area of approximately 89.3km(2) . The project is located within the
Yandal Gold Province, a Tier 1 gold belt, host to numerous
multi-million-ounce gold systems.
The Jundee East Project is located in a previously unrecognised
greenstone belt, proximal to the Jundee Gold Mine, host to previous
production and resource of >7Moz gold.
Figure 1: Jundee East Project location Map showing proximity to
the Jundee Gold Mine
Gravity data is one of the main tools used in exploring under
sediment cover, which is one of the primary challenges facing
minerals exploration. The data can be used to create 3D models of
the subsurface, providing a better understanding of the structure
and geological setting. A gravity map of the Jundee region is shown
in Figure 2.
A comparison between the gravity response of the Jundee Gold
Mine and Jundee East provides a similar level of density response.
The gravity mapping suggests that a major portion of the Jundee
East is potentially located in an unrecognised Greenstone Belt
which is approximately 20km long and 5km wide with a noticeable
'bend' (with some portion in Granites). This is contrary to the
magnetic interpretation (potentially different due to sediment
cover).
Detailed 3D modelling of gravity-based response shows a strong
degree of correlation of gravity response between that of Jundee
and Jundee East which further supports the initial 2D
interpretation in Figure 3.
The degree of the structural complexity of the greenstone unit
within Jundee East, including multiple structures which extend from
mineralised zones of the Jundee mining area to the tenure,
significantly upgrades the prospectivity for hosting structurally
controlled gold mineralisation within the greenstone body.
The interpreted late-stage intrusion occurring towards the
central-eastern margin of the tenure represents a priority target
in itself. A 3D Induced Polarisation ("IP") survey is recommended
to be conducted across this target.
Detailed magnetics and gravity are suggested to be completed
across the Jundee East Project area in order to adequately
understand the lithological and structural framework. Strong IP
response is noted for the major deposits in the district including
Darlot, Thunderbox, Bronzewing and Jundee gold mines. The IP
response is associated with basement sulphide anomalies - primarily
a response to pyrite as a function of alteration. The use of a
broader 3D IP survey across the Jundee East Project is proposed in
order to directly target mineralisation.
In addition, a Mobile Metal Ion ("MMI")/enzyme leach geochemical
soil sampling survey is suggested to be completed across priority
structural targets defined from a combination of the geophysical
surveys undertaken.
Figure 2: Jundee East Project - Gravity Response overlayed on
Geology
Figure 3: Jundee East Project - 2D and 3D Modelling of
Gravity
Northern Zone Project:
The Northern Zone Project is comprised of one granted
prospecting license (P25/2651). The project covers an area of 82
hectares. The project is in a highly prospective area for gold,
being approximately 25km east of Kalgoorlie, 40km north of Kambalda
and 55km east-north-east from Coolgardie.
Figure 4: Northern Zone Project location map showing proximity
to the Kalgoorlie "Super Pit".
In Mining Insights' opinion, the main host for potential gold
mineralisation is the auriferous veins in granitic intrusions in
the N-S structural corridor. However, the northern portion is
covered by deep transported material up to 70m thick, making
geochemical detection of mineralisation difficult and requiring
drilling.
There have been several historic drill programmes conducted on
the project area from 1998 - 2012. There are many significant drill
intercepts historically reported (see full Independent Technical
Report), with some of the more significant gold drilling intercepts
including:
-- 9m @ 5.06 g/t Au - hole BNRC017
-- 1m @ 39.82 g/t Au - hole BNRC033
-- 3m @ 3.72 g/t Au - hole BNRC067
-- 2m @ 23.27 g/t Au and 40m @1.2 g/t Au - hole BNRC069
-- 6m @2.12 g/t Au and 2m @ 12.98 g/t Au - hole BNRC051
-- 3m @3.72 g/t Au - BNRC067
-- 30m @ 1.5 g/t Au - hole BNRC081
-- 217m @0.51 g/t Au - BNRC066
-- 10m @ 2.1 g/t Au - BNRC079
-- 6m @2.31 g/t Au and 3m @ 2.85 g/t Au - BNRC080
-- 28m @ 0.84g/t Au and 48m @ 1.65g/t Au (including 4m at 7.7g/t Au) - BNRC095
Previous drilling at the Northern Zone Project also recorded
very significant results for nickel ("Ni"), with some of the more
notable intercepts including:
-- 10m @ 1.07% Ni - hole BNRC012
-- 21m @ 1.09% Ni - hole BNR0142
-- 4m @ 1.33% Ni - hole BNRC012
-- 4m @ 1.17% Ni - hole BNR0146
In Mining Insights' opinion, significant further exploration of
the North Prospect area of the Northern Zone Project is
warranted.
The Northern Zone Project is hosted within a granite and
associated intrusives, showing similar alteration characteristics
to other granite hosted deposits in the Eastern Goldfields, namely
the Majestic (1,362,550 tonnes @ 2.23 g/t for 97,690 ounces) and
Federal gold deposits (467,485 tonnes @ 2.8 g/t for 41,388 ounces)
and the recently discovered Imperial Prospect.
Mining Insights considers the project area highly prospective
for structurally controlled orogenic lode gold deposits, of which
there are many examples in the surrounding greenstone belt. The
project is positioned in a prime location in terms of a regional
geological and gold mineralisation setting. It lies in a
well-endowed gold region, the Eastern Goldfields granite -
greenstone belt, close to major crustal structures, underlain by
Archaean greenstone lithologies with late-stage felsic intrusions.
There is significant gold mineralisation in the immediate district
including the Kanowna Belle, Kalgoorlie, Mt Charlotte and Golden
Ridge mines.
Next steps
The Company is developing exploration programmes for the
Projects with its independent consultants and will provide further
updates in this regard .
Transaction details
Oracle has agreed to acquire the Projects from Mining Equities
Pty Ltd for a cash consideration of GBP90,000, which will be
satisfied from Oracle's existing cash reserves, and the issue of
the Consideration Shares and the Warrants.
The Consideration Shares will rank pari passu in all respects
with the existing ordinary shares. Application will be made to the
London Stock Exchange plc for the admission of the Acquisition
Shares to trading on AIM ("Admission"). It is anticipated that
Admission will occur at 8.00 a.m. on or around 19 November 2020
("Admission").
Following Admission, the Company's issued share capital will
comprise 2,128,420,539 Ordinary Shares. As the Company does not
hold any shares in treasury, this figure of 2,128,420,539 Ordinary
Shares may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest, or a change in their
interest, in the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
Lock-In arrangement in respect of the Consideration Shares and
Warrants
The Consideration Shares and any new Ordinary Shares issued
pursuant to exercise of the Warrants are subject to a three-month
lock-in period following Admission.
Mining Insights' Independent Technical Report Compliance with
JORC and VALMIN Code
The report by Mining Insights (available on the Company's
website) has been prepared in accordance with the Australasian Code
for Public Reporting of Technical Assessments and Valuations of
Mineral Assets 2015 Edition (The VALMIN Code) and the Australasian
Code for Reporting of Exploration Results, Mineral Resources, and
Ore Reserves 2012 Edition (The JORC Code).
Qualified/Competent Person Statement
The information in this report that relates to Exploration
Results is based on information compiled by Mr Robert Wason BSc
(Hons) Geology, MSc (Mining Geology), a Competent Person who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr
Wason is Senior Consultant - Geology at Mining Insights Pty Ltd. Mr
Wason has more than 10 years of international experience and has
sufficient experience in exploring, mining and estimating base
metal and gold deposits that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the JORC Code.
Mr Watson also meets the requirements of a competent person
under the AIM Note for Mining, Oil and Gas Companies. Mr Wason has
no economic, financial or pecuniary interest in the Company, and he
consents to the inclusion in this document of the matters based on
his technical information in the form and context in which it
appears.
*ENDS*
For further information on Oracle Power Plc, visit the Company's
website http://www.oraclepower.co.uk or contact:
Oracle Power PLC +44 (0) 203 580 4314
Naheed Memon
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
3494
Rory Murphy, James Harris, Jack Botros
Brandon Hill Capital Limited (Joint Broker) +44 (0) 203 463
5000
Oliver Stansfield
Shared Capital (Joint Broker) +44 (0) 20 7186 9952
Damon Heath, Isabella Pierre
St Brides Partners Limited (Financial PR) +44 (0) 20 7236
1177
Susie Geliher, Catherine Leftley
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
About Oracle Power PLC
Oracle Power PLC is an international power and natural resource
project developer listed on London's AIM market. Up until this new
gold related acquisition in Australia, the Company has focussed on
delivering reliable and affordable power in emerging developing
markets, unlocking the value of underutilised and undeveloped
natural resources to provide energy security and support economic
growth and development. Its initial project is the Thar Block VI
Project in the Thar desert in the south-east of the Sindh province
of Pakistan. The Thar Project is a 66.1 km(2) licence containing
1.4 billion tonnes of coal, where the Company, in tandem with its
partners China National Coal Development Company Ltd. (CNCDC) and
the private office of His Highness Sheikh Ahmed Bin Dalmook Juma Al
Maktoum, is advancing a combined lignite coal mine, a 1,320MW mine
mouth power plant and a proposed coal gasification to urea
project.
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