Oracle Power PLC (AIM:ORCP) said results from its maiden drill programme at the Northern Zone gold project located around 25 kilometres from Kalgoorlie in Western Australia were "a huge achievement".
The drilling successfully targeted gold mineralisation within a series of stacked porphyry intrusions, the company noted.
Significant results highlighted by Oracle included gold grades up to 1.43 grams per tonne over 3 metres, 1.34 g/t over 9 metres and up to 5.39 g/t over 4 metres in a broader, lower grade assay.
An estimated exploration target, based on historic data and the latest drill results, sees 2.5 to 4.8 mln ounces of gold resources (based on 200 to 250 mln tonnes of mineralisation at 0.4 to 0.6 grams per tonne gold).
Phase 2 drill plans are now underway, aimed 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, with an exploration target of 2.5 to 4.8Moz gold, 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 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.”
Memon also noted that the drill programme at the Jundee East project is due to start later this month.
Oracle shares advanced in Wednesday’s early deals, rising around 8% to 0.51p per share.