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Oakdale Resources Ltd

Oakdale Resources reaches 12-month high on news of gold acquisition in ‘elephant country’

The company has signed an option agreement to acquire properties in the prolific and mining-friendly US state of Nevada.

Golden elephant
Oakdale is close to production in Peru and sees the Nevada project as providing a growth pipeline

Oakdale Resources Ltd (ASX:OAR) shares have been up by as much as 93% to a new 12-month high of 2.9 cents after signing an agreement to acquire projects in the world-class gold region of Nevada, USA.

A Binding Option Term Sheet has been signed with Alpine Resources (USA) Pty Ltd to acquire its Alpine project which incorporates the Tonopah North, Douglas Canyon and Lambarson Canyon projects.

Targeting gold and silver

The company is targeting epithermal and Carlin type gold deposits at Alpine with the three staked primary exploration projects all having returned strong multi-ounce gold +/- silver sample results.

Subject to completion of due diligence, Oakdale aims to move all properties to drilling in the second half of 2019.

READ: Oakdale Resources to acquire Peruvian gold mine project as plant feed

Chairman Chris Gale told Proactive Investors: “With our Peruvian project nearing production, the company has been seeking an exploration project to ensure a growth pipeline.

“The Nevada project we have identified is in ‘elephant country’ for world-class gold deposits in one of the world's most prolific and mining-friendly jurisdictions.

“In this year's Fraser Institute survey Nevada was ranked as the ‘World Top 3’ mining jurisdiction.

“With excellent grades, in proven gold country with major operations in close proximity and gold prices at all-time highs, this acquisition appears to be an appropriate next step for the company.”

Map showing Alpine gold projects and Nevada gold deposits.

In-country experience

Gale said Oakdale was also delighted that the acquisition came with an exploration team with highly valued in-country experience, including leadership of the team that discovered the nearby 2.3 million-ounce Long Canyon gold deposit which is now in production.

The team includes Geoff Balfe, a geologist with more than 40 years’ experience including in excess of 20 years in North America, and Derek Fisher, who has more than 40 years’ experience in mining companies spanning corporate and operational roles.

A leading gold jurisdiction

Nevada is the sixth largest gold producing jurisdiction in the world and is responsible for 74% of US gold production.

There is low political risk, high quality infrastructure and a skilled workforce.

Important discoveries continue to be made in the established trends as well as outside the trends in eastern parts of Nevada and western Utah, for example Groundrush (14 million ounces) and Long Canyon.

Exploration planned

Upon completion of due diligence, which Oakdale will fund, the company plans to begin an exploration program.

The first stage will include a geophysical program to enable the review of the Alpine project tenements.

This geophysical review will assess the regional structure, intrusive complex and stratigraphy in the project area and assist in identifying priority drill targets.

Second stage exploration will involve a minimum 800 metres of diamond drilling on the priority targets to be managed by Alpine in accordance with an agreed and approved program and budget at a maximum cost of US$456,000.

On completion of the first drilling program the option agreement allows for Oakdale, at its sole discretion, to acquire all the shares in Alpine Resources.

Tonopah North regional geology showing gold and silver mine locations.

Near large deposits

At Tonopah North the conceptual drill target model is based on the high-grade Midway epithermal gold deposit 10 kilometres to the northeast.

Planned 300 metre diamond hole to test interpreted mineralised structures at Tonopah North.

Douglas Canyon is an intermediate sulphidation epithermal gold-silver system.

The Camp Douglas area is a bonanza epithermal gold-silver mining district in the Walker Lane of southern Nevada.

Location of Douglas Canyon and the Camp Douglas Mining District.

Several gold deposits have been established in the last decade and ground is tightly held.

Recent follow-up by Alpine led to multiple old workings and very strong Au and Ag rock chip values were obtained from old prospect pits and mine dumps which lead to a decision to stake the property.

Lambarson Canyon is a potential high-grade Carlin Type system with a similar geological setting to the 4 million-ounce Lone Tree deposit.

Lambarson Canyon location and proximity to major gold mines of the Carlin & Cortez trends.

Oakdale also intends to target similar highly prospective, yet under-explored, trends similar to the Long Canyon gold trend and other analogous settings in Nevada.

Quick facts: Oakdale Resources Ltd

Price: $0.01

Market: ASX
Market Cap: $1.79 m
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