Okapi Resources Ltd (ASX:OKR, FRA:260) has jumped 53% after a highly successful start to its maiden drilling program at the Enmore Gold Project in northern NSW with thick, shallow high-grade gold intersected, including 174 metres at 1.83 g/t gold from surface.
Within this intersection in hole OSSRC06 at Sunnyside East prospect was 100 metres at 2.34 g/t from 59 metres and this, in turn, included 31 metres at 3.05 g/t from 115 metres.
And just to add to the encouragement from the hole, it terminated in 3 metres at 8.86 g/t from 171 metres, including 1-metre at 15.15 g/t from 172 metres.
Potential for open-pittable resource
As mineralisation remains open at depth and along strike with indications that grade may increase with depth, Okapi believes there is potential to define a large, shallow open-pittable resource.
Shares soared almost 53% higher at the opening to 79.5 cents, a new high of more than three-and-a-half years.
Analogous to Hillgrove
Also supporting the company’s confidence is the fact that mineralisation is analogous to that at the operating Hillgrove Gold Mine of Red River Resources Ltd that is around 20 kilometres north of Enmore with both within the New England Fold Belt.
Okapi Resources executive director David Nour said: “These results show the potential for a very large, shallow, high-grade gold deposit at our Enmore Gold Project, with mineralisation from surface with some of the highest grades returned below 170 metres.
"The depth potential is very encouraging and we have multiple prospects that remain untested.”
Okapi recently completed 10 drill holes for 1,257 metres across three prospects - Sunnyside East, Sunnyside West and Bora.
Assay results have been returned with strong results from all 10 holes.
Sunnyside East shines
It wasn’t just hole OSSRC06 that has buoyed Okapi with other strong Sunnyside East results of:
- 37 metres at 1.27 g/t from 27 metres, including 3 metres at 3.12 g/t from 53 metres;
- 39 metres at 1.19 g/t from 51 metres, including 12 metres at 2.10 g/t from 70 metres; and
- 6 metres at 1.24 g/t from 9 metres, 18 metres at 1.08 g/t from 40 metres, 22 metres at 1.00 g/t from 81 metres and 9 metres at 1.48 g/t from 130 metres.
The drilling intersected shallow gold at Sunnyside prospect with mineralisation present over around 400 metres between Sunnyside East and Sunnyside West along the district-scale Sunnyside fault.
Plan view showing surface projections of drilling completed to date at Sunnyside East prospect, including significant intersections in Okapi’s maiden drilling program.
With cross-cutting faults known to have an important control on the location of high-grade gold at Hillgrove, Okapi recognised evidence of similar cross-cutting structures at Enmore, but there had been limited work targeting these structures.
Two holes targeted these structures at Sunnyside East with hole OSSRC06 providing the strongest evidence of the similarities.
Other results
The recent drilling also intersected further shallow gold at Sunnyside West with both holes here proving successful, returning:
- 7 metres at 1.25 g/t gold from 30 metres, including 1-metre at 5.61 g/t from 36 metres; and
- 17 metres at 0.69 g/t from 20 metres, including 7 metres at 1.10 g/t from 20 metres.
There were also two holes drilled at Bora, 4 kilometres west of Sunnyside, targeting a small-scale historic mine with best results of:
- 3 metres at 0.51 g/t gold from 53 metres and 2 metres at 0.52 g/t from 69 metres; and
- 2 metres at 0.58 g/t from 67 metres.
Further work is required to assess the significance of these results and plan follow-up work.
Enmore Gold Project, prospect location map.
What’s next?
Following the success of the maiden drilling at Enmore, Okapi is now planning a follow-up exploration program to facilitate the preparation of a maiden JORC-compliant resource.
Gold was first discovered in the Enmore area in 1876 and intermittently mined till 1940, with mining continuing today at the nearby Hillgrove Mine, which has produced more than 700,000 ounces.
There is further exploration potential at Enmore, with 39 identified prospects – the majority of which are untested with deep drilling and limited to no modern geophysics or other targeting methods applied across the project.
While the company is extremely pleased with the maiden drilling results, its core focus remains on advancing its recently acquired portfolio of advanced, high-grade uranium assets located in the USA.