Oracle Power PLC (AIM:ORCP), the international natural resources project developer, is pleased to provide the following update statement from its CEO, Naheed Memon, with respect to developments during Q4 2021:
“Over the course of 2021, we have been focused on our objective of creating scale and diversification in our portfolio to establish Oracle in the international power and resources sector. I am therefore pleased with the progress we have made throughout this year in achieving this goal and we have ended the last quarter of 2021 on a strong note. We now hold a diversified portfolio with multiple high growth divisions, with the support from two state-owned Chinese enterprises and a highly supportive strategic shareholder. Oracle is developing two highly prospective gold projects in Western Australia, pursuing power and gas generation in Pakistan, and is poised to become a front runner for the clean energy movement in Pakistan by developing a green hydrogen production facility. We are very confident that our growing portfolio of assets and interests will generate significant returns for our stakeholders.
“The Company is making significant progress with the advancement of its two 100% owned gold assets in Western Australia, the Jundee East and Northern Zone projects. Both continue to return highly encouraging results, demonstrating their potential for development.
“At Jundee East, the Department of Mines Industry Resources and Safety approved the programme of work (“PoW”) in October for drilling of the five target areas defined as part of the maiden drill programme. BM Geological Services was then contracted to commence drilling shortly after and to secure a drill rig. A slimline Reverse Circulation (“RC”) track mounted drill rig was secured in December, and mobilisation of the drill is expected to site in a few weeks. The maiden drill programme aims to confirm the presence of a previously unrecognised greenstone belt proximal to Northern Star’s Jundee Gold Mine. With the PoW due to begin later this month, I look forward to sharing updates from the programme.
“At Northern Zone, which is located 25km east of Kalgoorlie, home of the second largest gold mine in Australia, assay results from the maiden drilling campaign were sent for analysis by ALS Global in December and, post-period end, highly positive results were returned in January 2022. The first phase RC drill programme completed in October 2021, mainly targeting gold mineralisation and results were based on 1,161 assay samples that were processed at the lab. Based on historical results and those of the recent seven drill holes, the project has been interpreted as an intrusion related gold system with wide gold mineralised felsic porphyry intrusions, which holds the potential to host significant ounces of gold. Indeed, based on the historical results and the results of this recent drilling, an Exploration Target of 200-250Mt at 0.4-0.6g/t Au for 2.5 to 4.8Moz gold has been established, reconfirming our belief that Northern Zone has the scale and scope to become a significant gold mining operation.
“Moving to our interests in Pakistan, since announcing a non-exclusive co-operation agreement in October with PowerChina International Group Ltd (“PowerChina”) with the objective of jointly developing a green hydrogen production facility, we have already made encouraging progress on this new pillar in our strategy. Green hydrogen is increasingly becoming recognised and developed as a competitive fuel source across a range of sectors and forms a key part of the global transition towards a carbon free future.
“I was honoured to be invited to a ceremonial signing of the non-exclusive co-operation agreement with PowerChina in October, held at the Energy Department Sindh, Karachi, Pakistan. Hosted by the Minister of Energy, Sindh, and attended by other government officials as well as the country representative of PowerChina who was joined by the Executive Vice President via video link, this prestigious event was a strong endorsement from the local Government of Sindh. Those who attended recognised this as an historic moment as Pakistan moves towards more renewable energy projects. Moreover, it solidified PowerChina’s commitment to the project and the Consul General of China in Karachi assured the support of his government on this. All parties involved clearly recognise the significance of this project on a global level and I was encouraged to see that all are eager to advance the project’s development as swiftly as possible.
“Following the agreement, we welcomed Dr Naveed Akhtar as Chief of Technology – Hydrogen, to the Oracle team. An expert in hydrogen fuel cells, this marked an important step towards advancing our green hydrogen strategy in Pakistan and Dr Akhtar’s over 20 years of experience in the industry will be key in advising us on the technological aspects as we look to develop a green hydrogen production facility in Pakistan and as we then look to the future commercialisation of hydrogen.
“In December, PowerChina completed a preliminary technical study, establishing the key technical and commercial contours for the delivery of a hydrogen production facility in Pakistan. An ambitious 400MW capacity hydrogen plant is being targeted, with planned production of approximately 150,000kg a day. Our strategic partner is actively pursuing technology suppliers and assessing costs internationally and together we are working to refine the commercial frameworks to advance this project. I hope to share progress on this in the coming months. Meanwhile, the process for arranging land and infrastructure to build this large and important facility in the province is underway at a considerable pace.
“I also had the privilege of being invited by the Government of Sindh to present its green hydrogen production strategy, which has already been defined as a ‘Global Goal’, at the Expo 2020 in Dubai, a further sign of the government’s endorsement of our plans. In such a short time since signing the co-operation agreement with PowerChina and embarking on this new strategic path, we have already made major strides in moving it forward. I am delighted to position Oracle as a frontrunner in Pakistan for the production of clean energy, and I look forward to carrying on this momentum in 2022 and seeing further advancements.
“Also in Pakistan, we continue to make progress with regards to our Thar Block VI Project particularly in the context of the approved Indicative Generation Capacity Expansion Plan 2021-2030 (‘IGCEP’), prepared by the National Transmission Dispatch Company (‘NTDC’) in Pakistan. As previously announced, the National Electric Power Regulatory Authority (‘NEPRA’) has approved a plan to expand electricity generation capacity from the existing 34,776MW to 61,112MW by 2030. In addition, NEPRA has directed the NTDC to consider the Company’s Thar Block VI Project for inclusion in the next IGCEP annual review. This is a positive development for Oracle and we continue to monitor the onward progress of the IGCEP annual review and will deliver updates to the market accordingly. Separately, we are also actively pursuing opportunities with our coal-to-gas proposition, and this is beginning to generate significant interest within Pakistan, particularly given the severe gas crisis and weak currency . We look forward to sharing further insights on this, and the other dimensions of our growing business, over the coming weeks.”
The Board of Oracle would like to advise shareholders that Naheed Memon, CEO of Oracle, will be conducting a shareholder Q&A session, details of which will be made available on the Company’s website by close of business on 25 January 2022.
Shareholders are invited to submit questions to Ms. Memon by 12.00pm on 20 January 2022 via email at email@example.com. There is no guarantee that all questions will be discussed on the call given time limitations and/or specific sensitivities with respect to operations.
For further information:
Oracle Power PLC
Naheed Memon – CEO
+44 (0) 203 580 4314
About Oracle Power PLC:
Oracle Power PLC is an international natural resource and power project developer quoted on London’s AIM market. The Company holds two highly prospective gold assets in two globally significant gold regions of Western Australia. The Northern Zone Project is located 25km east of the major gold mining centre of Kalgoorlie, the home of the ‘Super Pit’ mine, the second largest gold mine in Australia, and the Jundee East Gold Project is located ~9km east of Northern Star’s Jundee Gold Mine, one of Australia’s largest gold mines.
The Company is also active in the power industry in Pakistan and is working to establish a green hydrogen production facility in association with PowerChina. The Company’s initial project is the Thar Block VI Project in south-east Pakistan where the Company is advancing plans for a combined lignite coal mine, a 1,320MW mine mouth power plant and a proposed coal gasification to urea project.
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