Oracle Power PLC (LON:ORCP) told investors it believes its two gold projects in Western Australia, Northern Zone and Jundee East, could each deliver significant shareholder value over the medium term.
Chief executive Naheed Memon, in a statement, highlighted excitement around the company’s findings and plans in Western Australia.
“Drilling is anticipated to start at Northern Zone, which is located 25km east of Kalgoorlie, the home of the Super Pit mine, the second-largest gold mine in Australia, in a matter of weeks,” he said. “This is a major development for Oracle and will feed invaluable results into the market to provide guidance on the mineralised potential of this exceptionally promising exploration project.”
During the second quarter of 2021, the company’s operations were centred on Jundee East, including the announcement in March of a newly identified substantial greenstone belt discovered through surveying.
After having an exploration tenement rubber-stamped in May the company’s team immediately initiated a geochemical programme which was subsequently expanded due to what were said to be “extremely encouraging” results.
Analysis of these results will inform future drilling efforts in the coming months, Memon noted.
Memon meanwhile also commented on the company’s interests in Pakistan.
“The excitement around our findings and plans in Western Australia does not eclipse the value that we believe we have in our Thar Block VI in Pakistan, which remains an important dimension of both our strategy and potential future growth,” he said.
“Notwithstanding this, I and the rest of the board are acutely aware that we have now reached the one-year anniversary from the date on which we believed we would have received the receipt of the Letter of Intent from the Private Power and Infrastructure Board (PPIB).
“This is clearly a frustrating delay and one which we know has caused consternation amongst some of our longer-term shareholders.”
Memon noted that the delay is part related to the impact of COVID-19 but also said that the landscape for energy production in Pakistan has evolved over the past 12-18 months, particularly in regard to the use of coal.
He added that the country’s Indicative Generation Capacity Expansion Plan 2021-2030 remains incomplete to date, though it is expected to provide an indicative optimum route to grow energy supply in the current decade.
Whilst also acknowledging political sensitivities at play in the industry, Memon said: “The board believes this is a positive development in the context of Oracle’s Thar Block VI Project, and it will continue to work with both the provincial and national government agencies to secure Oracle’s seat at the table once this process has been finalised.
“Indeed, this remains the executive management’s priority focus in Pakistan and I spend a significant proportion of my time in Karachi meeting the relevant government ministers and agencies to progress this.
“Our project and our work more generally in Pakistan continues to have the support of many of the key decision makers in government and we remain hopeful of a successful outcome.”