Oar drilling returns Australia’s best ever halloysite grades
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Excitement is brewing at Oar Resources’ Gibraltar project after drilling returned grades of up to 53% halloysite, the highest observed anywhere in Australia.
Along with multiple other holes returning grades in excess of 30% halloysite, the class-leading result is a strong indicator that the Gibraltar project in the Eyre Peninsula, in South Australia is a new, high-grade halloysite discovery.
This is a positive for the company as demand for halloysite – a rare derivative of kaolin with a wide variety of industrial uses in ceramics, petrochemical refining, as well as other developments in new tech – has been climbing rapidly.
Oar Resources (ASX:OAR) noted that the latest drill results, and previously reported high-brightness kaolin results, have highlighted four distinct high-priority target areas that will be the subject of additional infill drilling. This drilling is scheduled to commence next month.
“These new halloysite results are the highest grades we have seen anywhere in this district and confirm to us the significant potential of our Gibraltar halloysite-kaolin project,” general manager geology Tony Greenaway said.
“The regional scout drilling campaign has been an incredible success, adding significantly to the geological understanding of the area, and providing us with four clear high priority targets to take forward.
“I am particularly encouraged by the emerging cluster of halloysite pods coming out in our data.
“We see this pattern over other areas of a similar size both on the Eyre Peninsula and in Western Australia, where other companies have gone on to define very large JORC resources based around similar early-stage drilling success.”
He expressed his belief that the company will continue to uncover additional halloysite mineralisation as it expands drilling over the interpreted granite basement to the west and advance the target areas with the aim of estimating an initial inferred JORC resource at Gibraltar over the coming months.
The Gibraltar project is adjacent to and north of Andromeda Metals’ (ASX:ADN) Mt Hope kaolin-halloysite project on South Australia’s Eyre Peninsula.
Maiden drilling carried out in November 2020 had confirmed the presence of high-grade halloysite mineralisation within a blanket of kaolinitic clays.
The latest drilling results have confirmed multiple coincident halloysite anomalies with grades of more than 10% in the southwest target area, which stretches over an area of 2.5km by 0.5km.
It also identified three additional “Bullseye” anomalies that are coincident with high grade halloysite and high brightness kaolin.
Oar has secured the services of a drilling contractor to undertake the next round of follow-up drilling, which can be completed within the existing government drilling approvals.
Preparation and logistics for earthworks and other preliminary work for the drilling is underway, with drilling expected to begin in October 2021.
This will seek to better define the large southwestern anomaly, which remains open to the west; and infilling the bullseye anomalies in order to move toward the estimation of an initial inferred JORC resource.
This article was developed in collaboration with Oar Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.