IAMGOLD Completes AC Drilling at Madina Bafé

RNS Number : 8113H

Oriole Resources PLC

05 August 2019

 

Oriole Resources PLC 

('Oriole Resources' or 'the Company')

IAMGOLD Completes AC Drilling at Madina Bafé

Oriole Resources, the AIM-quoted exploration company operating in Africa and Europe, is pleased to provide an exploration update on its 85%-owned Dalafin gold project ("Dalafin" or the "Project") located in the Kédougou-Kéniéba inlier of eastern Senegal, where IAMGOLD Corporation ("IAMGOLD") has the option to spend up to US$8M to earn a 70% interest (announcement dated 1 March 2018).

IAMGOLD has completed 4,167 metres ("m") of a planned 5,000m programme of shallow aircore ("AC") drilling at the Madina Bafé prospect ("Madina Bafé" or the "Prospect") as part of its Year 2 commitment (announcement dated 28 February 2019). Results include a best grade of 235 parts per billion ("ppb") gold ("Au") and have outlined multiple new anomalies in the south of the Prospect as well as in a new area several kilometres ("km") to the north. The programme has now stopped for the wet season and will resume in October. 

Highlights:

·     IAMGOLD has completed regional AC drilling at Madina Bafé for 4,167m to intersect the weathered profile;

·     Results for 869 holes have identified multiple new >20 ppb Au anomalies, including:

o  3.5km long¹ northeast-trending anomaly in the south of the Prospect - related to a previously-defined 0.4km anomaly (>50 ppb Au) c.1km to the southwest;

o  2km long northeast-trending anomaly in the north of the Prospect, related to cross-cutting zones of higher-grade anomalism;

·     Best results include 235 ppb Au, 157 ppb Au, 138 ppb Au, 104 ppb Au and 99 ppb Au;

·     US$1m Year 2 work programme will continue in October, including (subject to ongoing results):

o  4,000m reverse circulation ('RC') drilling at Madina Bafé to follow-up on best results to date;

o  2,500m regional AC drilling at Saroudia prospect, c.2 km to the north west;

o  Subsequent 1,600m RC drilling at Saroudia to follow-up on best AC results.

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¹ discountinuous due to lack of sample recovery. 

Oriole Resources CEO, Tim Livesey, said: "We are very pleased to see the excellent progress to date at Madina Bafé and look forward to the programme recommencing here and at Saroudia after the rains. 

"The identification of yet more gold targets has expanded our area of interest in the south of Madina Bafé to a substantial 16km². The identification of a further 2km long anomaly several kilometres north of this, leaves us convinced of the more prospective nature of our Dalafin licence within this highly endowed geological terrane.  

"We are confident that follow-on RC Drilling will provide further definition of these targets at Madina Bafé, and that more anomalism will be identified as the programme extends to the Saroudia area."

Further details

As part of its Year 2 exploration commitment at Dalafin, IAMGOLD has recently completed 904 vertical AC drill holes at the Madina Bafé prospect for a total 4,167m of a planned 5,000m programme. Drilling was completed on a 400m by 50m grid and, as per the initial 2018 AC drilling, one bottom of hole sample (from the upper saprolite or mottled zone) was taken per hole to test the bedrock geochemistry. Samples for 869 holes were assayed for low-level gold (2 ppb Au detection limit) and multi-elements.

The recent programme was focused on extending northwards the earlier 2018 AC drilling grid at Madina Bafé, which had outlined multiple gold anomalies (>20ppb Au) including a c.1.5km west-northwest trending anomaly in the south-east (announcement dated 25 October 2018) and where follow-up reverse circulation ("RC") and diamond drilling confirmed the depth-continuity of mineralisation and delivered a best intersection of 8m at 2.56 grammes per tonnes ("g/t") Au (announcement dated 6 February 2019).

Best results from the programme include 99 ppb Au, 104 ppb Au, 138 ppb Au, 157 ppb Au and 235 ppb Au. They have outlined a 3.5km long² northeast-trending anomaly (>20 ppb Au with a higher-grade zone of >50 ppb Au extending over 1.25km). This appears to be related to a 0.4km long anomaly (>50 ppb Au) c.1km to the southwest that was indentified during the 2018 AC drilling campaign. A second parallel anomaly 1km to the east extends over 1.25km and returned up to 138 ppb Au. The broader zone of anomalism in the south of the Prospect now extends over an area of 4km x 4km.

The results have also identified a new 2km-long anomaly in the north of the Prospect, with higher grade results (>50 ppb Au) within the zone apparently related to northwest-trending cross-cutting structures. These structures are also mineralised (>50 ppb Au) with anomalism extending over distances of up to 1.5km. The northeast-trend of the anomalism is consistent with a number of other shear-related mineralised zones to the south, which were indentified during the 2018 AC drilling campaign.

The camp has been closed down for the rainy season and the c.US$1m Year 2 exploration programme will recommence in late October. As well as completing the remaining AC holes at Madina Bafé, IAMGOLD intends to complete 4,000m RC drilling to follow-up on best results to date.

As previously reported, IAMGOLD will also step north to test the Saroudia prospect, located c.2km northwest of Madina Bafé (announcement dated 28 February 2019). An initial 2,500m AC drilling programme will be completed for 654 holes on a 400m x 50m spacing to test the most prospective area as defined previously by Oriole (announcements dated 25 July 2013 and 19 February 2014). All the holes will be vertical with one sample collected per hole to test the bedrock geochemistry of the upper saprolite or mottled zone. Samples will be assayed for low-level gold and multi-elements. Subject to results of the AC drilling, a 1,600m RC programme is planned to follow-up on any trends identified.

For further information, including Madina Bafé and Saroudia drill plans and a JORC Table 1 please see the Dalafin page of our website https://orioleresources.com/projects/dalafin/.

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^{2 discountinuous due to lack of sample recovery.}

Deal Terms

Under the terms of the Agreement, AGEM Senegal Exploration Suarl ('AGEM'), a wholly-owned subsidiary of IAMGOLD, is earning-in to an initial 51% interest in the Project by expending US$4m on exploration over four years and has the further option to increase its interest to 70% by expending an additional US$4m over the subsequent two years. IAMGOLD is in Year 2 of the earn-in and is currently focusing on exploring the southernmost Madina Bafé and Saroudia prospects, which are within 20km of its 2.49Moz Boto gold project.

Competent Persons Statement 

The information in this release that relates to Exploration Results has been compiled by, and is based on information reviewed on behalf of the Company, by Claire Bay (VP Exploration and Business Development). Claire Bay (MGeol, CGeol) is a Competent Person as defined in the JORC code and takes responsibility for the release of this information. The exploration on the Dalafin Project was carried out by AGEM, a wholly-owned subsidiary of IAMGOLD. Claire has reviewed the information in this announcement and confirms that she is not aware of any new information or data that materially affects the information reproduced here.

** ENDS **

For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:

Oriole Resources PLC Tim Livesey / Bob Smeeton / Claire Bay	Tel: [phone]
Blytheweigh (IR/PR contact) Tim Blythe / Megan Ray / Rachael Brooks	Tel: [phone]
Grant Thornton UK LLP Samantha Harrison / Ben Roberts / Niall McDonald	Tel: [phone]
WH Ireland Adrian Hadden / Lydia Zychowska	Tel: [phone]
Hannam & Partners Neil Passmore / Andrew Chubb	Tel: [phone]

Notes to Editors:

Oriole Resources PLC is an AIM-listed exploration company, operating in Africa and Europe. It is focused on early-stage exploration in Cameroon and the more advanced Dalafin gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. The Company has several interests and royalties in companies operating throughout Africa and Turkey and is assessing new opportunities in both regions.

 

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