Thani Stratex Djibouti Exploration Update

RNS Number : 0051R

Oriole Resources PLC

25 June 2020

 

Oriole Resources PLC

('Oriole' or 'the Company')

Thani Stratex Djibouti Exploration Update

Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, reports that it has received an exploration update on its 11.8% holding in Thani Stratex Djibouti Limited ('TSD').

African Minerals Exploration & Development Fund III ('AMED Fund III') has completed its initial US$2.5 million investment ('Tranche 1' or 'Investment') to fund exploration at the Pandora and Hesdaba epithermal gold projects (the 'Projects') in Djibouti (Announcement dated 9 March 2020).  Limited metallurgical testwork on samples from earlier drilling phases at Pandora has indicated encouraging gold recoveries. Oriole has not yet received results from the Phase 3 diamond drilling programme completed earlier this year at Pandora, (Announcement dated 9 March 2020) but expects to be in a position to report on these in Q3-2020. At Hesdaba, a programme of 1,931 metres ('m') diamond and 1,529 m reverse circulation ('RC') drilling has been completed. Initial results are also now anticipated in Q3-2020, following COVID-19 related delays.

Highlights

· Pandora:

o  Preliminary metallurgical test work on samples taken from the Phase 1 and Phase 2 drilling programme confirms gold recoveries of up to 94.56%;

o  Results from the 1,242 m Phase 3 diamond drilling programme anticipated Q3-2020;

· Hesdaba:

o  1,931 m of diamond and 1,529 m of RC drilling were completed;

o  Detailed mapping extends the combined strike of the individual vein zones from 5 kilometres ('km') to over 16 km;

o  COVID-19 related travel disruption has led to a delay in sample shipment/receipt by the ALS Chemex laboratory in Romania;

o  Results for an initial 478 diamond core, 1,129 RC chip and 272 surface grab samples are now anticipated early in the third quarter of this year;

· AMED Fund III has now completed its initial US$2.5 million investment;

· AMED Fund III has committed an additional US$250,000 convertible bridging loan to enable completion of the exploration programme planned under Tranche 1;

· COVID-19 restrictions in Djibouti prohibited exploration from March to mid-May and international borders are expected to remain closed until September 2020;

· Further exploration on the Projects, is subject to receipt and interpretation of all results;

· Plans to undertake exploration at Assaleyta are on hold until further notice, due to COVID-19.

Oriole CEO Tim Livesey, said: "We are delighted to see the advancement of the exploration at the Pandora and Hesdaba prospects in Djibouti. 

"Positive results from the preliminary metallurgical testing at Pandora are encouraging for any future resource development.  At Hesdaba, the combined extension of the previously identified epithermal structures from 5 km to 16 km is a significant step, and underlines the substantial opportunity for a new gold discovery. 

"The ongoing success at both Projects is likely to bring more attention to this under-explored region of East Africa and we are keen to see further results as and when they become available."

Further Details

Following TSD's receipt of Tranche 1 funding from AMED Fund III (Announcement dated 9 March 2020), the Company has received an exploration update in respect of the Pandora (Oklila Licence) and Hesdaba projects.

At Pandora, the 1,242 m Phase 3 diamond drilling programme, completed earlier this year, successfully intersected the vein system in all 13 holes (Announcement dated 9 March 2020). The programme predominantly focused on the Pyrrha vein system where a maiden drill hole previously returned 55.4 g/t Au over 1.22 m (Announcement dated 19 April 2018). Oriole has not yet received results from this programme but expects to receive them during the third quarter of this year and will update the market in due course.  

TSD has also undertaken preliminary metallurgical test work on six composite samples from the earlier Phase 1 and Phase 2 drilling campaigns (undertaken 2017-2018), which yielded gold recoveries of between 83.93% and 94.56% when gravity is combined with a cyanide leach. Encouragingly, gold leach kinetics suggest that the majority of the gold is leached within the first 4-8 hours and that the cyanide consumption rates are low.

At the Hesdaba project, 10 km northwest of Pandora, TSD has completed detailed mapping that has extended the combined strike of the individual vein zones from 5 km to over 16 km. A Phase 1 drilling programme comprising 1,931 m of diamond drilling (14 holes) and 1,529 m of RC drilling (15 holes) has also been completed to test the epithermal system at depth across three primary targets: Maranzana, Caravan and Red Horns. On 18 March 2020, due to COVID-19, the Government of Djibouti closed its borders, and imposed lockdown restrictions shortly thereafter. At the time of lockdown, 70% of the available diamond core had been cut and sampled. Following a short moratorium on the export of rock samples, these 478 core samples, together with 1,129 RC samples and 272 grab samples from outcropping quartz veins were eventually dispatched to ALS Laboratories in Romania. Results for these samples are now anticipated early in the third quarter of this year.

TSD has advised that it will complete a review of all data at the Projects ahead of planning any follow-up programmes.

At the Assaleyta project c.16 km to the north of Pandora, camp construction, major road and drill access works, and a 2,000 m Phase 2 diamond drilling programme were scheduled for H2-2020. However, as a result of the COVID-19 related delays outlined above, further work at this project is on hold until further notice.

As per the agreed terms (Announcements dated 9 March 2020 and 19 November 2019), AMED Fund III's Investment was partially converted to shares in TSD (Announcement dated 9 March 2020), with the outstanding 50% pending conversion. AMED Fund III has committed an additional US$250,000 convertible bridging loan to enable completion of the exploration programme planned under Tranche 1.

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.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Following the publication of this announcement, this inside information is now considered to be in the public domain.

** 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 / Niall McDonald	Tel: [phone]
Shard Capital Limited 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$8m to earn a 70% interest. Year 1 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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