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OAR Resources Identify REEs in its Western Eyre Peninsula Tenure

17 August 2023 10:46
ASX: OAR

OAR Resources (ASX:OAR) has announced initial promising results of its analysis of historic drill samples from the Western Eyre Peninsula Project, stored by the South Australian Government in the Department of Energy and Mining (DEM) Core library.

Multiple Alkaline Intrusives

The analysis of initial samples taken from the DEM Core library have found multiple alkaline intrusives which act as a potential host for Rare Earth Elements (REEs) mineralisation and pegmatites.

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Figure 1: OAR Resource’s 100 per cent owned Tenement Holdings in the Western Eyre Peninsula (WEP) South Australia showing locations of logged alkaline intrusives, pegmatites and identified magnetic anomalies which may be additional alkaline intrusives.

OAR has reported relogging and sampling of the first historic drillhole SHDD01, located on the Conical Hill Prospect, which identified ‘encouraging’ Total Rare Earth Oxide (TREO) values with carbonate altered kimberlite from 122-158m, and wide intersections of REE anomalism.

SHDD01 was drilled to test a magnetic anomaly in the early 2000’s, at a depth of 168.3m, and is the first of many historic holes tested by the Company. The assay results from the SHDD01 intersection returned 36m @ 638.88ppm TREO from 122m, including 14m @ 993ppm TREO from 135m.

The initial review revealed 11 of the historic drill holes were found to have intersected alkaline intrusives and 8 intersected pegmatites which have never been sampled, as the focus of previous explorers was the kimberlite intrusions.

The Company intends to systematically assess all 11 currently identified alkaline intrusives, whilst continuing to investigate all 203 magnetic targets.

666 Historic Drilling Holes

The historic drilling was conducted in the 1980’s over several years and is estimated to have cost $4 million in the current exploration climate.

A total of 666 holes were drilled for a total of 46,226m, targeting discrete magnetic features and identifying 203 geophysical anomalies initially interpreted as kimberlite intrusions.

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Figure 2: Retained pre collar samples from SHDD02 (left) and AC holes MH2-DH56K, L and P (right) stored at DEM Drill core Library in Adelaide

It is estimated nearly 80 per cent of the historic drill holes sampled were catalogued and stored in Adelaide which are available to the Company for logging and resampling.

Data Review

The process for relogging and resampling has been streamlined by the South Australian Government’s recent commitment to advancing critical minerals exploration within the state.

The Company has submitted 304 samples to the lab for REE, lithium and critical metal analysis, including the pre collar of SHDD01 at 0-83.4m, to assess the potential for REE and other minerals enrichment within the saprolitic zone.

OAR Resources has currently completed review of samples from 556 historic drill holes with the data compilation process spearheaded by independent geological consulting firm Terra Resources.

Future Outlook

Following the results from Conical Hill, an initial 21-hole RC program will be planned to effectively test the revised geophysical model and delineate the mineralisation at the site’s intrusive.

The Company will prepare drilling proposals to further test the number of anomalies found within the Western Eyre Project tenure with a shifting focus to Hill 55 on EL6700, located 15km northwest of Conical Hill, which has 27 historic drill holes with four intercepting alkaline intrusives or kimberlites and 2 with pegmatites.

OAR Resources has committed to follow up on the initial, ‘highly encouraging’ results by expanding the current sampling program with a focus on the entire tenement package.

The Company has already made headway in its exploration of battery metals in South Australia, after a successful capital raise in April of $1.75 million to ramp up development. Managing Director Paul Stephen said the team is committed to its exploration efforts across the South Australian tenement package, whilst accessing it’s new opportunities.

“This area of South Australia hasn’t been explored with today’s exploration technologies or standards. It’s also never been assessed for pegmatites or REE elements before and these initial results are very encouraging. There is huge potential in this underexplored part of Australia.”

“The quality and quantity of the drill core samples that has been retained by the South Australian Government is truly remarkable and provides an invaluable source of data for OAR to work with. This has enabled us to efficiently and cost-effectively assess the REE potential of the intrusions within the Western Eyre Peninsula.”

The Company plans to complete the historic data digitalisation, review and compilation, making assessment and ranking of the prospective anomalies for laboratory analysis, with further results from testing being reported to market when available.

OAR’s Australian Stock Exchange-listed share price is currently selling at 5 cents (10:20am UTC+ 8 hours).

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