(Sharecast News) - Oracle Power announced an exclusive option to acquire 100% ownership of the Blue Rock Valley Copper and Silver Project in the Ashburton Basin in northwest Western Australia on Tuesday.
The AIM-traded firm said the project, located 165 kilometres southeast of Onslow, a key port for the region's iron and LNG exports, boasted promising mineralisation potential, including high-grade copper, silver, and potential uranium deposits.
Historical drilling and rock chip sampling conducted by Jackson Minerals between 2007 and 2010 indicated significant findings, with notable samples containing up to 49.9% copper and 20.5 grams of silver per ton.
Moreover, electromagnetic geophysics studies identified several drill targets, including an undrilled electromagnetic anomaly situated in sedimentary rock formations conducive to base metals and silver deposition.
Plans were underway to use additional targeting tools to refine and develop targets further before initiating drilling operations.
The company said the project's tenement covered around 102 square kilometres and was held under one exploration licence, E08/3604, owned by Mining Equities.
Under the terms of the option and sale and purchase agreement, Oracle would pay £30,000 for the exclusive option, with a possibility to acquire the tenement for £0.2m if the option was exercised.
The transaction was conditional on obtaining necessary regulatory approvals from the Minister of Mines and Petroleum in Western Australia.
Despite Mining Equities not publishing statutory financial statements since acquiring the tenement, the company had capitalised costs associated with it totaling AUD 53,830 (£28,102), as per unaudited management accounts.
"The option over a base metal and silver project in Western Australia, of this magnitude, represents a great opportunity for Oracle," said chief executive officer Naheed Memon.
"Due diligence will be completed over the coming weeks, and an assessment of the best exploration tools to move the project forward will be undertaken by our technical team."
Memon said the project area was also highly prospective for gold, with the Eastern Hills Gold Project 11 kilometres to the north, and the "famous" Paulsen Gold Mine 42 kilometres to the north-north-east.
"A number of uranium projects are also nearby, including Paladin's 25.9 million pound uranium project and Cauldon's 30.9 million pound uranium deposit, indicating potential sediment hosted uranium near hot granites in the Ashburton Basin."
At 0931 BST, shares in Oracle Power weer up 5.96% at 0.03p.
Reporting by Josh White for Sharecast.com.
Oracle Power (ORCP)