Okapi eyeing off WA gold at Lake Johnson

Okapi Resources has narrowed its focus at Lake Johnson in WA, zeroing in on the Mount Day gold prospect after amending a previously announced farm-in agreement with Lithium Australia. Okapi has elected to prioritise the Mount Day tenement which adjoins its own wholly owned project position at Lake Johnson. The Mount Day project area hosts a 10km long surface geochemical anomaly which has produced rock chips of up to 10.68 grams per tonne gold.

Under the terms of the previous agreement with Lithium Australia, Okapi was set to earn into a suite of seven tenements across the underexplored Lake Johnson greenstone belt. The tenure was originally acquired for its lithium potential and is also prospective for nickel and gold mineralisation.

Following a preliminary review of Lithium Australia’s ground holdings, Okapi says it will narrow its focus to the gold potential of the terrane and will concentrate its exploration efforts on the Mount Day tenements. The seemingly well-considered move will also deliver Okapi sizable cost savings, in terms of a reduction in annual expenditure commitments.

The revised farm-in agreement with Lithium Australia will only cover tenement E 63/1903, with Okapi required to spend at least $100,000 on the tenement over an initial two-year period. Okapi then has a further two years to spend a total of $800,000 to earn a 75 per cent interest in the project, with Lithium Australia picking up a free-carry through to the completion of a Definitive Feasibility Study with Lithium Australia retaining the lithium rights over the tenement.

Okapi’s foray into Lake Johnson sees it join a band of ASX explorers and developers looking to reinvigorate the overlooked greenstone belt with other notable names holding ground in the domain including Poseidon Nickel, Element 25 and Lefroy Exploration.

The company’s Lake Johnston package of tenements will comprise two tenements covering around 100 square kilometres of the prospective gold-bearing stratigraphy. One of the tenements is wholly owned by Okapi and the other subject to the Lithium Australia farm-in agreement.

Okapi’s tenure is located less than 10km east of the dormant Maggie Hayes and Emily Ann nickel mines and covers the recently identified Mount Day gold anomaly. The Mount Day discovery was unearthed as a result of Okapi’s innovative use of forensic exploration and data mining, with the company successfully compiling a wealth of historical data over the region which also highlighted a number of yet to be tested gold anomalies.

Previous explorers have undertaken a mix of soil sampling and rock chipping at Mount Day, outlining a 10km long gold-in-soil anomaly that boasts rock chips grading over 10 g/t gold. Limited shallow drill testing of the anomaly has already hit paydirt, including an impressive intercept of 2m at 11.04 g/t gold from only 26m below surface.

Okapi has also identified a line of artisanal gold works which coincide with the Mount Day gold anomaly. The coincidence adds further weight to the target and provides a significant incentive to put boots on the ground and kick off drilling with Okapi now in the planning stages for its exploration activities into the new year.

The company looks to have put itself in a strong position as 2020 comes to a close. With a steely-eyed focus on its exploration targets, Okapi will likely be pouring over a raft of opportunities and looking to add a few more projects to its portfolio in WA.

Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au