Oakland Resources (ASX: OKL) has intersected high grade gold mineralisation from its maiden drilling program at its wholly-owned Spion Kop Prospect in New South Wales.
The near surface gold discovery represents an encouraging start to Oakland's gold exploration model and reinforces and enhances the prospectivity of the company?s regional exploration licences.
Thirty five holes have been completed for 2,111 metres. The results obtained have exceeded the company?s expectations and highlights include: 22 metres at 1.09 grams per tonne (g/t) gold including 6 metres at 3.11g/t gold.
Drilling continues to test high priority geochemical and geophysical targets. The company is planning to commence deeper diamond drilling targeting the open strike and depth extent of mineralisation next month.
The Spion Kop Prospect has the potential to host a high grade large gold deposit.
Oakland is aggressively exploring for gold deposits in the emerging Silurian Gold Province of New South Wales.
Its large ground position of 1,400 km square kilometres is in similar Silurian stratigraphy to that which hosts the 2,960,000 ounce McPhillamys Gold Deposit in New South Wales.
The company's Day Dawn prospect occurs along strike from the McPhillamys deposit, which is the second largest gold discovery made in Australia over the last decade.
The company is in a strong cash position with 2.7 million at the end of the March quarter.
OKL Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
