Oakajee Corporation is poised to resume air core drilling at its Paynes Find project after securing a rig, aiming to expand on a recently discovered gold mineralisation zone with assays up to 925ppb.
- Follow-up drilling delayed but scheduled for August 1
- Previous AC drilling revealed gold up to 925ppb over 2km strike
- Planned 50-hole program to test 1,000m strike length
- Company holds $3.5 million in liquid assets including listed shares
- 80% interest in key Paynes Find tenements under joint ventures
Drilling Resumes After Rig Delay
Oakajee Corporation Limited (ASX:OKJ) is set to restart air core (AC) drilling at its Paynes Find gold project in Western Australia, with operations scheduled to commence on 1 August 2026. The follow-up drilling was delayed from the June quarter due to rig availability but now has a confirmed contractor lined up to test a newly identified gold mineralisation zone discovered late last year.
Significant Gold Mineralisation Confirmed
The previous AC drilling campaign, completed in the December 2025 quarter, comprised 28 holes totalling 1,258 metres. It revealed a gold zone grading up to 925 parts per billion (ppb) near a mafic/felsic contact, associated with elevated pathfinder elements such as arsenic, bismuth, copper, cobalt, and tungsten. The mineralisation, linked to quartz-veined sheared mafic rocks, appears to strike north-northwest and lies adjacent to an interpreted granite contact. Notably, the zone remains open to the north, south, and west, concealed beneath up to 20 metres of lake clay and gravel, with a potential strike length of approximately 2 kilometres.
Expanded Drilling Program Targets 1km Strike
The upcoming AC program will involve roughly 50 drill holes over 1,900 metres, focusing on a 1,000-metre strike length. Priority 1 holes will infill around the known mineralisation and extend testing immediately north and south, while Priority 2 holes will target areas further west depending on initial visual results. This methodical approach aims to delineate the extent and continuity of the gold-bearing structures.
Financial Position and Tenement Interests
At quarter-end, Oakajee held $3.5 million in liquid assets, including $106,000 in cash and $3.4 million in market value of listed shares, notably 11 million shares in Santa Fe Minerals (ASX:SFM) and 5 million shares in Asara Resources (ASX:AS1). The company maintains an 80% interest in several key tenements at Paynes Find under joint venture agreements, with one tenement wholly owned. These holdings position Oakajee well to advance exploration and potential development.
Exploration Outlook
While the new drilling program's results remain pending, the confirmed presence of high-grade gold mineralisation beneath cover at Paynes Find adds a compelling chapter to Oakajee's exploration story. The project lies within a historically productive greenstone belt with over 72,000 ounces of reported past production, suggesting a fertile ground for further discoveries. How the new drilling will refine the resource potential and influence project economics will be closely watched by investors and the market.
Bottom Line?
Oakajee’s imminent drilling campaign will be a key test of the new gold zone’s continuity and potential, with outcomes likely to shape the project’s near-term trajectory.
Questions in the middle?
- Will the upcoming drilling confirm continuity and expand the known gold mineralisation at Paynes Find?
- How might assay results influence Oakajee’s exploration strategy and potential resource upgrades?
- What impact could the company’s liquid asset position have on funding further exploration or development?