Litchfield Minerals to begin drilling at Oonagalabi after high-chargeability discovery

Litchfield Minerals (ASX: LMS) has finalised plans for a significant Phase 1 drilling program after discovering large high-chargeability targets at its Oonagalabi project in the Northern Territory.

Surveys have identified two large, high-intensity sulphide-bearing targets the company estimates extend over 1 kilometre in strike and more than 500 metres in depth.

A few historical drill holes have intersected the chargeability shell containing the best mineralisation recorded to date, reinforcing the strong correlation between chargeability and sulphide mineralisation.

Test program planned

Chief executive officer Matthew Pustahya said that, based on the positive survey results, Litchfield has finalised plans for a program to directly test the strongest anomalies.

“The results from this latest induced polarisation survey have exceeded our expectations and have provided a significant breakthrough in our understanding of the Oonagalabi system,” Mr Pustahya said.

“We now have clear evidence of a large, continuous chargeable body, which appears to be open to the north-east and south-west,” he said.

Highly chargeable core

Previous drilling has never tested the highly chargeable core, which Litchfield believes provides an opportunity to define a higher-grade zone within the system.

“Our geological model continues to evolve and we now believe that Oonagalabi may be part of a large skarn system,” Mr Pustahya said.

“This interpretation is further supported by the identification of a potential intrusive source 900m to the north-east, which appears structurally linked to the mineralised body.”

“If this intrusion is confirmed as the primary driver of the system, it could significantly expand the exploration potential beyond the known mineralised footprint.”

Drilling agreement

Litchfield has signed a strategic drilling-for-equity agreement with leading Australian contractor Bullion Drilling at $0.12, a 26% premium to the current share price.

“This agreement allows us to complete up to 2,000m of drilling while preserving capital, ensuring we can aggressively test these high-priority targets without unnecessary shareholder dilution,” Mr Pustahya said.

The proposed program – which the company intends to begin in late March or early April – will include six RC holes, with five targeting the high-chargeability western anomaly and the other the eastern anomaly.

“We believe Oonagalabi has the scale and geological characteristics to develop into a significant discovery and this next drilling phase will be pivotal in unlocking its full potential.”