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Highlights
- Litchfield Minerals (ASX:LMS) to commence Phase 1 drilling at Oonagalabi.
- High-chargeability targets identified, extending over 1km in strike and 500m in depth.
- Strategic drilling-for-equity agreement secured to advance exploratio
Litchfield Minerals (ASX:LMS) is gearing up for an extensive Phase 1 drilling program at its Oonagalabi project in the Northern Territory after identifying large, high-chargeability targets. The latest surveys have uncovered two sizeable, high-intensity sulphide-bearing zones, with each extending over one kilometer in strike and reaching depths beyond 500 meters.
Unlocking New Exploration Potential
Historical drilling at Oonagalabi has intersected the outer chargeability shell, where some of the most promising mineralisation has been recorded to date. This has strengthened the correlation between chargeability readings and sulphide mineralisation, providing strong confidence in the upcoming drill targets.
According to Litchfield’s chief executive officer, the latest induced polarisation (IP) survey results have provided a significant breakthrough in understanding the system. The company now has evidence of a large, continuous chargeable body, which appears open to the north-east and south-west.
Additionally, geological assessments indicate that Oonagalabi could be part of a much larger skarn system. A potential intrusive source, located 900 meters to the north-east, has been identified, with structural links to the mineralised body. If confirmed, this could expand the project’s exploration scope well beyond its current footprint.
Testing the Core Target Areas
Previous exploration efforts have yet to test the highly chargeable core of the system. With the upcoming drill program, the company aims to define a potential higher-grade zone within the mineralised structure.
The new understanding of the project’s geology suggests that the mineralisation may be associated with a deeper intrusive source. This interpretation could lead to further upside if the presence of an intrusion is verified.
Strategic Drilling Agreement in Place
To advance the program efficiently, Litchfield has entered a drilling-for-equity agreement with leading Australian contractor Bullion Drilling. The agreement, set at $0.12 per share—26% above the current trading price—allows the company to complete up to 2,000 meters of drilling while preserving capital.
The Phase 1 program, scheduled to begin between late March and early April, will include six reverse circulation (RC) drill holes. Five will focus on the high-chargeability western anomaly, while the remaining hole will test the eastern anomaly.
With strong geological indicators and a well-structured drilling plan, the Oonagalabi project is now entering a crucial phase that could unlock significant exploration potential.
