Oakdale, through its 100% owned Peruvian subsidiary Ozinca Peru SAC, is the owner and soon to be operator, of a CIP Gold lixiviation plant in Southern Peru.
The plant is strategically located in a highly mineralised area, with thousands of small miners in the immediate vicinity, all of whom are potential customers for our processing business. The Company intends to secure supply contracts with many of these miners as source feed for its Chimu Gold Plant.
The Company has also recently signed a Binding Term Sheet for the acquisition of the Hanai Gold mine and the Burpar Gold concessions covering 1500 hectares.
It is anticipated that, with successful mining and development, these properties in time will sustain a successful mining operation, which will provide source material feed for the expanded processing facility at Chimu.
Oakdale Resources through its option agreement with Alipine Resources (Nevada, USA) is targeting epithermal and Carlin type Gold deposits in Southern Nevada, which jurisdiction is ranked "World Top 3" by the Fraser Institute.
The 3 properties staked all have strong multi ounce Gold and Silver results on sampling and multiple drill targets have been identified.
The Oakdale exploration team has more than 20 years experience in-country including leadership of the team that discovered the 2.3 million ounce nearby Long Canyon Gold deposit which is now in production.
Following satisfactory completion of the first stage geophysical program and full review of the regional structure and stratigraphy of all tenements the Company intents to move into drilling in 2019 on all properties.
The Company also has mining leases covering 750 km2 on the Eyre Peninsula in South Australia which are highly prospective for graphite, copper, zinc and manganese.
Exploration has revealed multiple graphite intersections in near-surface oxidised saprolitic clays that can be easily mined and require limited processing.
Ongoing drilling has confirmed the scale and consistency of the mineralisation, and it is expected the project can progress readily into production and with modest capital expenditure.
For the moment however, the Company intends to concentrate on re-commissioning its gold processing plant in Southern Peru, where low cost gold production, with excellent anticipated profits, will provide a springboard for other opportunities to grow shareholder wealth and value.