REG - Oracle Power PLC - Acquisition of 100% of Copper and Silver Project

Oracle PowerAnnouncement

11/06/2024 07:00

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RNS Number : 8679R  Oracle Power PLC  11 June 2024

11 June 2024

Oracle Power PLC

("Oracle" or the "Company")

Acquisition of 100% of Copper and Silver Project in the Northwest Region of
Western Australia

 

Oracle Power PLC (AIM:ORCP), the international project developer, is pleased
to announce that, further to its announcements of 9 April and 30 May 2024 and
following the completion of the due diligence process, the Company has
exercised its option to conditionally acquire 100% of the Blue Rock Valley
Copper and Silver Project ("Blue Rock" or the "Project").

 

 

Blue Rock is located in the Ashburton Basin in Western Australia, 165km
southeast of Onslow, the main port for the region's Iron Ore and liquified
natural gas (LNG) exports, which is a substantial multi-user port. The site is
accessed from the North-West Coastal Highway on a well-maintained unsealed
road (refer to Figure 2).

 

Highlights:

o  Acquisition of Blue Rock   completed, subject to Western Australian
government approval.

o  Assays from historical drilling and rock chip sampling suggest the
presence of high-grade copper and silver mineralisation as well as the
potential for uranium.

o  Significant historical rock chip samples collected in the vicinity of the
Project area by Jackson Minerals Limited ("Jackson") between 2007 and 2010
(WAMEX Report A079571) comprise:

 

 -      BRR011: 49.9% Cu, 4.93g/t Ag        -      J45413: 10.7% Cu
 -      BRR012: 37.6% Cu, 6.69g/t Ag        -      J45438: 9.09% Cu, 20.5g/t Ag
 -      BRR013: 16.05% Cu, 4.34g/t Ag       -      J45441: 7.89% Cu
 -      BRR014: 14.85% Cu, 2.82g/t Ag       -      J45436: 6.6% Cu
 -      BRR015: 11.75% Cu, 2.37g/t Ag       -      J45414: 4.98% Cu, 4.1g/t Ag

o  Historical Reverse Circulation drilling returned significant results:

-      Hole BBRC005: 4m @ 1.02% Cu from 0m; and

-      Hole BBRC004: 8m @ 0.54% Cu from 6m (including 1m @ 1.39% Cu from
10m).

o  Electromagnetic (EM) geophysics as versatile time domain electromagnetic
(VTEM (airborne)), and fixed loop transient electromagnetic surveying (FLTEM
(surface)), studies have defined various drill targets.

o  An EM 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.

o  Further targeting tools to be assessed in order to refine and develop
targets, before drilling is undertaken.

o  Gold and uranium also being targeted as these deposit types occur within
the Ashburton Basin.

 

The Project Tenement:

The Project tenement (the "Tenement") covers 32 Blocks (approximately
102km(2)) (see Figure 2 below) and is composed of one exploration licence,
E08/3604. The Tenement was granted on 2 October 2023 to Mining Equities Pty
Ltd ("Mining Equities") 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% of the licence
area to be surrendered at the end of year six.

 

Transaction Closing Terms:

Pursuant to the option and sale and purchase agreement with Mining Equities
(the "Agreement"), Oracle has exercised its exclusive option to acquire a 100%
interest in the Tenement for £200,000, to be settled by the issue to Mining
Equities of 913,242,009 new ordinary shares of 0.1p ("Ordinary Shares")
("Consideration Shares") as set out in the announcement of 9 April 2024.

 

The transfer of the Tenement from Mining Equities to Oracle is subject to and
conditional on the Company obtaining the prior written consent of the Minister
of Mines and Petroleum in the State of Western Australia.  Such consent will
be applied for when the transfer is registered with the Department of Energy,
Mines, Industry Regulation and Safety and is expected to be obtained shortly
thereafter.

 

 

Mining Equities has agreed that the Consideration Shares 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
A$53,830, which have all been capitalised in its unaudited management
accounts.

 

Naheed Memon, CEO of Oracle, commented:

"I am very pleased to announce that we have completed the acquisition of this
exciting copper and silver project in Western Australia, of this magnitude,
that represents a great opportunity for Oracle. 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 Paladin's 25.9Mlb uranium and Cauldon's
30.9Mlb uranium deposits indicating potential sediment hosted uranium near hot
granites in the Ashburton Basin. I look forward to exploration getting
underway."

 

Admission and total voting rights

Application has been made to the London Stock Exchange plc for the 913,242,009
Consideration Shares to be admitted to trading on AIM ("Admission"). It is
expected that Admission will become effective at 8.00 a.m. on or around  12 
June 2024. The Consideration Shares will rank pari passu with the existing
Ordinary Shares.

 

On Admission, the enlarged issued ordinary share capital of the Company will
be 7,452,310,364 Ordinary Shares, with no shares held in Treasury. Therefore,
the total voting rights in the Company following Admission will be
7,452,310,364 and this figure 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 in, or a change in their interest in, the
share capital of the Company under the FCA's Disclosure Guidance and
Transparency Rules.

 

 

For further information on Oracle Power PLC, visit the Company's website
www.oraclepower.co.uk (http://www.oraclepower.co.uk) or contact:

 

Oracle Power PLC

Naheed Memon - CEO
                                     +44 (0) 203 580 4314

 

Strand Hanson Limited (Nominated Adviser & Joint Broker)

Rory Murphy, Matthew Chandler, Rob
Patrick
+44 (0) 20 7409 3494

 

St Brides Partners Limited (Financial PR)

Isabel de Salis, Susie Geliher, Isabelle Morris
                 +44 (0) 20 7236 1177

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by
virtue of the European (Withdrawal) Act 2018, as amended.

 

Competent Person's Statement

The information in this announcement that relates to exploration results,
mineral resources or ore reserves, is based on information compiled by Mr
Edward Mead, who is a Fellow of the Australasian Institute of Mining and
Metallurgy. Mr Mead is a consultant to the Company. Mr Mead has sufficient
experience which is relevant to the style of mineralisation and type of
deposits under consideration and to the activity that he is undertaking to
qualify as a Competent Person as defined in the 2012 edition of the
`Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves' (the JORC Code). Mr Mead consents to the inclusion of this
information in the form and context in which it appears in this announcement.

Figure 1: Photo of Rich Copper Oxide Sample from a Historical Trench within
the Blue Rock Shafts (Techgen, 8 September 2021)

 

About Blue Rock Valley Copper and Silver Project:

The Blue Rock Valley Copper and Silver Project (E08/3604) is located in the
Ashburton Basin, in the northwest region of Western Australia. The site is
located 165km southeast of Onslow, the main port for the region's Iron and LNG
exports, which is a multi-user port. Access is from the Northwest Coastal
Highway on a well-maintained unsealed road. Refer to Figure 2 below for
location.

 

Conceptually, the Company sees similarities between the Project and the
Maroochydore Sediment hosted copper deposits and Nifty, both in Western
Australia. Nifty is a world class Copper deposit with Global resources
exceeding 95Mt @ 1% Cu. The tectonic setting and lithological package are
similar also to the Mt Isa Formation which hosts the George Fisher Zn-Pb-Ag
deposit and the Mt Isa Copper deposit.

 

To further develop the Project, subject to, inter alia, approval of the
Minister of Mines and Petroleum in Western Australia, Oracle plans to:

·    Digitise all historical data

·    Assess the benefits of a geochemical sampling programme

·    Assess the benefits of a ground gravity geophysical programme

·    Undertake drilling based on the existing EM target and any other
anomalies identified

 

 

 

Project Geology

The eastern portion of the Project area overlies the Wyloo Group sediments of
the Ashburton Basin which are unconformably overlain by rocks of the Edmund
Basin (previously the Bangemall Basin), which cover the western portion of the
Tenement. The contact between the Ashburton and Edmund basins is interpreted
as being a thrust contact with movement to the west and can be clearly seen in
the regional aeromagnetic image.

 

Mineralisation

The Ashburton Mineral area (which incorporates the Project area) has a long
history of gold, copper, silver, lead and zinc exploration.

 

Several smaller prospects which were historically exploited for gold, copper,
silver and lead are located nearby including the Soldiers Secret and Top Camp
gold deposits. Small-scale production of copper, lead and silver has also been
recorded in the Ashburton Basin, mainly from the Ashburton Downs copper
deposits within the Project area and others in the region such as Kooline (Pb,
Ag) and Bali Hi (Cu-Pb-Ag) areas.

 

Historical Exploration

The Ashburton Downs copper deposits have a long history of exploration. Within
the Project area, a number of prospects have been examined by Jackson
(2007-2010), Cauldron Energy ("Cauldron") up to 2010, and TechGen Metals Ltd
("TechGen") to March 2022. No work has been undertaken since March 2022 to the
present day. Most of the exploration was confined to surface rock chip
sampling where some high grades of copper were identified; Jackson 10.7% Cu,
Cauldron 1.82% Cu and Techgen up to 16.05% Cu.

 

In addition, TechGen carried out geophysical surveys over the Project area. In
March 2022, seven reverse circulation (RC) drill holes (Table 1) were
completed over two of the three geophysical targets defined. The third target
in the syncline to the southwest of the historical Blue Rocks Mine, remains
untested and undrilled, and Oracle believes this to be the centre of the
mineralised system. Examples of the mineralisation style can be seen in
Figures 1, 3 and 4. Figure 5 illustrates the TechGen geophysical anomalies and
drill holes.

 

Refer to the Highlights above for further information on the rock chip sample
and RC drill hole results.

Figure 2: Blue Rock Valley project location and access

Figure 3: Rock sample BRR011 assayed at 49.9% Copper and 4.93g/t Silver
(TechGen, 13 October 2021)

Figure 4: One of several historical copper workings from the 1960s in the
Project area with oxide copper samples (TechGen, 19 September 2021)

 

 

Figure 5: VTEM anomalies and drill hole locations, Blue Rock Valley Project
(TechGen, 3 March 2022). The untested target is 2.2km in strike/length

Table 1: Techgen results from the 7 RC drill holes completed.

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