Senala Air Core Drilling Results

RNS Number : 8769R

Oriole Resources PLC

11 March 2021

 

Oriole Resources PLC 

('Oriole Resources' or 'the Company' or 'the Group')

Senala Air Core Drilling Results

Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focussed on West Africa,   provides an update on its Senala project ('Senala' or the 'Project') in Senegal, where joint venture partner IAMGOLD Corporation ('IAMGOLD') has the option to spend up to US$8 million to earn a 70 per cent interest (announcement dated 1 March 2018).

The Company is pleased to report the results of the recently-completed air core ('AC') drilling programme at the northernmost Faré prospect ('Faré'). The holes were planned to test the geochemistry of the immediate sub-surface, below the influence of any lateritic and/or transported cover, with a single sample taken per hole. The programme has reported best values of 2.58 grammes per tonne ('g/t') gold ('Au'), 0.64 g/t Au and 0.62 g/t Au, successfully supporting and enhancing the previous gold-in-soil anomalies defined by the Company. The results confirm that the majority of the anomalism is in situ, and IAMGOLD has indicated its intention to proceed with a follow-up exploration programme comprising 5,000 metres ('m') reverse circulation ('RC') drilling and 1,000m diamond drilling, subject to a mutual agreement on addressing outstanding issues related to the option agreement (the 'Option Agreement') as referenced below.

This work had previously been scheduled for completion within Year 3 of the earn-in but will now fall into the Year 4 period that commenced at the end of February 2021. Accordingly, under the terms of the Agreement, IAMGOLD has underspent on its Year 3 commitment at Senala. The Company is awaiting the details of the underspend from IAMGOLD and discussions are ongoing with regard to how this is addressed under the terms of the Option Agreement.

Oriole Resources CEO, Tim Livesey, said:  "We welcome the confirmation of the existing anomalism on the three sub-prospects, as initially identified by Company's soil sampling programmes of 2012 and 2016. The AC drilling by IAMGOLD has returned best grades of 0.62 g/t gold, 0.64 g/t gold and 2.58 g/t gold. However, IAMGOLD has been unable to complete their planned Year 3 work programme and, as at the end of the Year 3 term, has also failed to meet its spending commitments under the terms of the Option Agreement.

"We have always believed that, based on the existing RC and Diamond drilling undertaken in 2013 and 2014, the Faré prospect has the potential to host a resource which, subject to further exploration success, could form the basis of a stand-alone mining operation.

"We are in discussion with IAMGOLD on its recent request to carry over the Year 3 underspend into Year 4. We are hopeful of seeing an expanded work plan proposal from them soon which will capture both the existing underspend from Year 3 as well as the Year 4 commitment, and to agreeing an appropriate way forward.

"Meanwhile we reserve our right to give notice of breach for failure to meet the terms of the Option Agreement. Discussions with IAMGOLD are ongoing, and although we are disappointed that IAMGOLD has missed its spending and work commitment for Year 3, Senala is an exciting asset in a very prospective mineral belt, surrounded by a number of large and encouraging deposits, and the Company has a number of options available to deliver value at Senala."

Summary

· IAMGOLD has completed 6,901m AC drilling for 912 holes at the Faré prospect;

· Holes were drilled to a maximum depth of 10m to test below the influence of transported cover and thus ensure a true representation of the underlying bedrock;

· For each hole, one (or in some cases two) samples were collected from the strongly weathered zone immediately above the bedrock;

· A total of 1,344 samples were collected and analysed for gold and multi-elements;

· These results have confirmed significant surface anomalism (>30 ppb Au) along a dominant north-east trend at the previously-identified Faré North, Faré South and Faré Far South sub-prospects. T he programme has returned best grades of 0.62 g/t Au, 0.64 g/t Au and 2.58 g/t Au from Faré North;

· IAMGOLD has indicated its intention to undertake a planned 5,000m RC drilling to test the best anomalies, as well as 1,000m diamond drilling to test mineralised intervals previously identified by the Company;

· The programme will test anomalism identified along the strike length from previous drilling at Faré North and at Faré Far South, which is yet to be drill-tested;

· In addition, we expect that the work will confirm the grades achieved at Faré Far South. Best historic intersections include 20m grading 31.13 g/t Au including 10m grading 60.98 g/t Au from RC drilling and 59.60m grading 2.20 g/t Au and 49.50m grading 1.75 g/t Au from diamond drilling (announcement dated 9 November 2020);

· Commencement of the programmes is subject to mutual agreement on addressing outstanding issues relating to the Option Agreement.

Further Details

The third year of IAMGOLD's earn-in at Senala has focused on the northernmost Faré prospect, where soil sampling by the Company defined three main sub-prospects - Faré North, Faré South and Faré Far South - over a total strike length in excess of 6 kilometres (announcements dated 4 December 2012 and 6 June 2016). Follow-up drilling of over 10,000m RC and diamond drilling delivered best intersections of 20m grading 31.13 g/t Au including 10m grading 60.98 g/t Au from RC drilling and 59.60m grading 2.20 g/t Au and 49.50m grading 1.75 g/t Au from diamond drilling (announcement dated 9 November 2020), leading Oriole to believe that Faré has the potential to be a standalone deposit.  

The AC drilling by IAMGOLD was intended to better-define the geochemical footprint of the gold-in-soil mineralisation at Faré, with holes drilled to a maximum depth of 10m to test below the influence of assumed transported cover and thus ensure a true representation of the underlying bedrock. The programme was completed for a total 6,901m in 912 holes; this is lower than the planned 10,000m programme but relates to wider sample spacing (200x100m compared to 200x50m) over the Faré South sub-prospect, where there is already a greater density of historic RC and diamond drilling. For each hole, one sample (or in some cases two, subject to the discretion of the geologist) were collected from the strongly weathered zone immediately above the bedrock.

The results reported today have reaffirmed the overall orientation of the mineralisation and the tenor of the anomalism previously defined along the strike length, which remains open to the northeast and southwest. A total of 1,344 samples were collected and analysed for gold and multi-elements and have confirmed significant anomalism (>30 ppb Au) across all three sub-prospects, with best grades of 0.62 g/t Au, 0.64 g/t Au and 2.58 g/t Au returned from the Faré North sub-prospect. The gold anomalism is associated with Tungsten ('W'), Arsenic ('As') and Bismuth ('Bi') anomalism, typical of orogenic gold systems. The observed geology within the holes confirmed that the previously-identified soil anomalies were in-situ and with limited transported cover. Analysis of the QAQC has highlighted an issue with two of the blank samples and an investigation is underway. All of the other QAQC materials reported within acceptable limits.

On the basis of these result, IAMGOLD has indicated its intention to proceed with a follow-up exploration programme comprising 5,000m RC and 1,000m diamond drilling. A total of five RC fences have been planned at the Faré North sub-prospect; three to the northeast and two to the southwest of previous drilling by Stratex. The planned holes will test strongly anomalous coincident gold and pathfinders anomalies (W, As and Bi). A further two fences are planned for the Faré Far South sub-prospect, where the AC drilling returned a strong and coherent gold anomaly coincident with the results of soil sampling reported by Stratex in 2016.

Subject to the results of the RC drilling, c.400m diamond drilling is planned to test the best new target. Two further holes of 200m and 400m, respectively, are also planned to test the depth extension of the main mineralised zone at Faré South as defined by the historic drilling.

The commencement of the follow-up exploration programme is subject to a mutual agreement on addressing the outstanding issues relating to the Option Agreement. The follow-up drilling had previously been scheduled for completion within Year 3 of the earn-in but IAMGOLD has recently requested that this be carried forward into the Year 4 period that commenced at the end of February 2021. The Covid-19 pandemic created an initial delay until the end of Q2-2020. Under the terms of the Agreement, IAMGOLD has underspent on its US$1m Year 3 commitment at Senala. The details of that underspend are awaited and discussions are ongoing with regards to how this is addressed under the terms of the Agreement.

For further information, including an updated JORC Table 1, please see the Senala page on the Company's website   https://orioleresources.com/projects/senala/ .

Competent Persons Statement  

The information in this release that relates to Exploration Results has been compiled 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. 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 **

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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 / Seamus Fricker / George Grainger	Tel: [phone]
Shard Capital Partners LLP Damon Heath / Erik Woolgar / Isabella Pierre	Tel: [phone]

Notes to Editors:

Oriole Resources PLC is an AIM-listed exploration company, operating West Africa. It is focused on early-stage exploration in Cameroon (Bibemi and Wapouzé projects) and the more advanced Senala gold project in Senegal, where IAMGOLD has the option to spend US$8 million to earn a 70% interest. Year two commitments have been met at all three projects. The Company has several interests and royalties in companies operating throughout Africa and Turkey that could deliver future cash flow, and it continues to assess new opportunities in both regions.

 

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