Oar extends Douglas Canyon claims by 50%, set to restart drilling as gold prices nudge US$1900/oz
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Oar Resources has picked an impeccable time to restart drilling at its Douglas Canyon gold project in Nevada as gold prices touch US$1900/oz.
The Aussie-listed OAR is now just days away from restarting diamond drilling in the USA’s prolific Walker Lane gold and silver district, home to numerous multi-million ounce high-grade gold deposits including Kinross’ Round Mountain gold mine.
Oar (ASX:OAR) will recommence drilling next month on drillhole DCD-02, which is targeting the depths of a highly-fractured high-grade quartz vein mapped at surface.
It’s targeting gold to a depth of 250-300m, before the drill rig moves to a second hole to drill test the parallel high-grade structure on the northern shear at DCD-01, to the north of the first hole.
In late December when Oar stopped drilling ahead of the New Year’s break it intersected the targeted shear, and will restart from within this target structure from 213.5m deep.
And so far it has delivered plenty of positive indications for hosting gold mineralisation, with thin quartz stringers and highly siliceous quartz breccias observed in the drilling to date.
It certainly looms as a good time to get back on the ground at Douglas Canyon.
“With gold prices running higher it’s an opportune time to be drilling the Douglas Canyon Gold Project in Nevada, which consistently ranks among the top tier mining jurisdictions globally and currently holds top spot for overall investment attractiveness and second for mineral potential,” Oar MD Justin Richard said.
“In short, we have the right team, in the right place, at the right time.”
While drilling continues, Oar has expanded its Douglas Canyon project with the strategic addition of new ground immediately adjacent and to the west of the project.
Another 2.59km2 of claims will increase Oar’s holding by roughly 50% to 6.47km2 and extend the Project’s interpreted strike length to more than 2.5km.
The western extension of the main shear currently being drilled at Douglas Canyon already can be traced visually for 1.5km.
The new claims filed with the Nevada Bureau of Land Management include multiple prospect pits to the south of the structure and continuing to the west, so the old timers clearly saw gold there.
Mapping and prospecting of the claim area is due to begin in March, with airborne imagery suggesting other structures could be there to test between the two major structures in the western extension.
Oar’s interest in extending its tenure at Douglas Canyon is unsurprising given the priority project sits in the Camp David/Mina district, an emerging exploration and mining hotspot in Southern Nevada.
Just 24km northwest of Douglas Canyon the Fortitude Gold Corporation began production at the Isabella Pearl gold mine in 2019.
Gold mineralisation in the district is hosted in the northwest trending shear hosted epithermal quartz veins mapped at surface at Douglas Canyon, which has been identified by Oar as a priority project along with the Crown nickel-copper-PGE project near the Julimar discovery in WA.
Oar announced the sale for $500,000 cash of its non-core Bramfield iron ore project in South Australia this month, which will provide an injection of capital for exploration at Douglas Canyon, Crown and the Gibraltar Halloysite-Kaolin project in SA.
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.