The ASX share price of Octava Minerals (ASX: OCT) surged almost 200 per cent today after the company revealed high-grade antimony hits from historic drilling at its Yallalong project, 220km north of Geraldton in Western Australia –marking a potential game-changer for the company.
While going through historic data, Octava dug up drilling results from 2015 and 2016 that was conducted at the site by previous owners, Traka Resources. It uncovered massive intersections of antimony at what is known as the Discovery prospect, including an impressive 3m at 6.83 per cent and 7m at 3.27 per cent at a time when the silvery metal has become all the range on global markets.
The company’s share price responded accordingly, jumping from an overnight close of 4.8c to soar up to an intraday trading high of 14c on the back of its biggest-ever volumes since its listing in 2022. By the end of the trading day, a whopping 24 million shares had changed hands – representing more than half of the 47.4 million units on issue.
The Yallalong project encompasses two exploration licenses with a combined area of 157 square kilometres. Beyond antimony, the region is also prospective for nickel, copper and other critical minerals.
Following the completion of a base metal reconnaissance drill program in early 2024, the team has been re-examining project data to determine next steps for Yallalong. It was noted that historic drilling for antimony had been carried out at the project and with ingot prices increasing from $8000/tonne to now over US$24,500/tonne, there is definitely unfinished business for antimony at Yallalong
Octava Minerals Managing Director Bevan Wakelam
In 2015, Traka agreed to buy the promising Yallalong project from a prospecting syndicate which had previously collected high-grade antimony samples of more than 60 per cent, in one instance, from quartz veins. Positioned in sedimentary rocks near the regional Darling Fault on the western edge of the Yilgarn craton, a positive geological assessment at the time indicated the potential for a significant discovery within a 3sq-km target area.
The antimony mineralisation is hydrothermal in origin, with fault-related structures serving as conduits for mineral-bearing fluids from depth and it is also associated with anomalous levels of copper, lead, zinc, gold and silver – with gold occasionally playing a significant role.
After promising geochemical geophysical analysis, Traka embarked on a drilling program in 2015 through a 350m strike down to 80m. While the results were encouraging, the company determined to follow up with deeper holes and to also focus on three more targets to the north and south.
It was the fourth target, the Discovery prospect, where the highest-grade intersections were recovered. However, because of a weak antinomy price and other higher-priority projects, the company withdrew from the lease in 2017.
According to management, the Discovery target has recorded some of the highest-grade antimony drill intercepts in Australia and is open in several directions.
Notwithstanding the earlier promising work done on the prospect that Traka chose not to pursue, the price of antimony has since surged to more than US$24,500 (AU$36,800) a tonne. Prior drilling was only targeted at the shallower oxide zone and consequently, Octava is now planning to plunge deeper to test for possibly bigger sulphide bodies.
Management says it also considers three other prospects, which are yet to feel the bite of the drill bit, as high-priority targets. Additionally, it has now identified a longer mineralised corridor stretching 10km across the Yallalong site, leaving open the possibility for further targets to be defined where high-grade surface samples have been recorded.
With plans to ramp up exploration, Octava has already benefitted from historical work that has given up plenty of positive leads. Add to that a soaring antimony price and a burgeoning demand from green-energy technologies and defence and Yallalong is offering the company a tantalising opportunity to make hay while the sun shines.
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