Oriole Resources PLC

Thani Stratex Djibouti Exploration Update

RNS Number : 1077T
Oriole Resources PLC
23 March 2021
 

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, provides an update on its 11.80% interest in Thani Stratex Djibouti Limited ('TSD'), where African Minerals Exploration & Development Fund III ('AMED Fund III') is managing and funding a multi-million dollar exploration programme at three low-sulphidation epithermal gold projects in the East African Rift Valley. The first US$2.5 million tranche of the funding was used to undertake drilling programmes at the Pandora and Hesdaba projects and the second US$2.5 million tranche is being used to fund further work at the Hesdaba and Assaleyta projects.

 

Further to its announcement on 22 December 2020, the Company reports further limited drilling and surface grab sampling results from Phase 1 exploration at the Hesdaba project. Best results are 1.00 metres ('m') grading 2.1 grammes per tonne ('g/t') gold ('Au') and 7.62 g/t Au, respectively, and follow the previously reported best intersections of up to 15.00m grading 4.08 g/t Au. A total of 2,159 Rock, diamond core and reverse circulation ('RC') chip samples (inclusive of QAQC) from Hesdaba are currently pending customs clearance, with final gold assay results for the programmes anticipated in Q2 2021.

 

TSD has also completed its Phase 2 programme at Assaleyta for 687.80m diamond drilling and 2,508m RC drilling. A total of 1,558 diamond core and RC chip samples (inclusive of QAQC) for Assaleyta are pending customs clearance, with results also expected during Q2 2021.

 

As a result of AMED Fund III converting a further US$1.5 million of the investment loan to preference shares, Oriole's holding in TSR now stands at 10.61%.

 

 

Highlights

 

· Phase 2 exploration programme at Assaleyta completed for 687.80m diamond drilling in three holes and 2,508m RC drilling in 22 holes;

· Further limited results (for 284 samples) from the Phase 1 drilling programme at Hesdaba have retuned a best intersection of 1.00m grading 2.1 g/t Au from the Caravan prospect;

· S urface grab sampling at Hesdaba has also returned encouraging results:

A single sample from the Caravan prospects returned 7.62 g/t Au;

19 samples from the Red Horns prospect returned 10 samples above 0.5 g/t Au and a best result of 3.82 g/t Au.

· All outstanding samples from both Hesdaba and Assaleyta are pending customs clearance in Djibouti before being dispatched for assay:

2,159 rock, diamond core and RC chip samples (inclusive of QAQC) for Hesdaba;

1,558 diamond core and RC chip samples (inclusive of QAQC) for Assaleyta;

Results from both projects anticipated in Q2 2021.

· Further work at the projects is pending receipt and assessment of all outstanding results;

· AMED Fund III has converted US$1.5 million of the existing loan amount to 668,763 preference shares. As a result, Oriole's holding in TSR has been reduced from 11.80% to 10.61%.

 

 

 

Oriole CEO Tim Livesey, said: "We are pleased to see the continued progress in Djibouti and in particular we are looking forward to seeing the results for these recent works as they are delivered through Q2. 

"Although only a small part of our legacy investment portfolio, it's great to see the potential being realised in Djibouti and we are confident these exploration programmes will add value to the assets."

 

Further Details

 

In November 2018, TSD signed an agreement with AMED Fund III for the management and funding of TSD and its epithermal gold projects in the East African Rift Valley of Djibouti. The first US$2.5 million tranche of the funding was used to undertake drilling programmes at Pandora and Hesdaba, with the current second US$2.5 million tranche being focussed on further exploration at Hesdaba and Assaleyta.

 

The Hesdaba project hosts a series of parallel epithermal vein systems with a combined strike length in excess of 16 kilometre ('km'). In 2020, TSD completed a Phase 1 drilling programme for 2,242.31m of diamond drilling in 17 holes and 3,413m of RC drilling in 33 holes, focussed on testing four main prospects namely Maranzana, Caravan, Red Horns and Stripes. Results for an initial 478 core samples and 1,129 RC samples (including QAQC) delivered a best diamond drilling intersection of 15.00m grading 4.08 g/t Au from 53.00m, including 5.00m grading 11.11 g/t Au (Hd-D-08) and a best RC intersection of 12.00m grading 1.99 g/t Au from 14.00m, including 6.00m grading 2.17 g/t Au and 3.00m grading 3.12 g/t Au (Hd-R-04), both from the Red Horns prospect (announcement dated 1 October 2020).

 

During Q1-2021, TSD has received results for a further 284 core samples - comprising selective intervals from a two diamond drill holes at the Caravan prospect (Hd-D-11 and Hd-D-14) and two diamond drill holes at the Maranzana prospect (Hd-D-12 and Hd-D-13), have reportedly returned a best intersection of 1.00m grading 2.1 g/t Au from hole Hd-D-14. Additionally, surface grab sampling of a single sample at Caravan has returned 7.62 g/t Au, with a further 19 samples from Red Horns delivering 10 samples above 0.5 g/t Au and a best result of 3.82 g/t Au.

 

A total of 2,159 Rock (related to channel sampling across the Red Horn prospect; announcement dated 22 December 2020), diamond core and RC samples (inclusive of QAQC) are currently pending customs clearance for export to ALS Laboratories for gold assay, with results expected in Q2.

 

At Assaleyta, located immediately to the east of Hesdaba, initial surface sampling confirmed low-sulphidation gold mineralisation over a vertical interval of 150m and 3km along strike. Best intersections from channel sampling included 15.70m grading 5.05 g/t Au, 6m grading 10.35 g/t Au and 26m grading 4.72 g/t Au (calculated using a 0.3 g/t Au cut-off), whilst five selective grab samples assayed >20 g/t Au (highest grade of 41 g/t Au). In 2016, a limited Phase 1 drilling programme was completed across the three main prospects, Porcupine Hill, Red Eagle Mountain and Black Mamba. The drilling confirmed vertical continuity of the system and returned best intercepts of 17.38m grading 2.25 g/t Au from surface (AY-DD-01) and 5.18m grading 4.50 g/t Au from 12.09m and 1.58m grading 8.67 g/t Au from 177.19m (AY-DD-03) (calculated using a 0.3 g/t Au cut-off).

 

TSD has recently completed a Phase 2 drilling programme, comprising 687.80m diamond drilling in three holes and 2,508m RC drilling in 22 drillholes, to further-evaluate the depth extension of surface mineralisation and also define the relationship between the rhyolites and the epithermal mineralisation. The drilling has confirmed a thick sequence (c. 100m) or rhyolite overlaying a thin layer of lacustrine sediments (reflecting a hiatus in volcanic inactivity) and deeper basalts. Quartz-carbonate veins and breccia, with grey, sulphide-rich chalcedonic silica, have reportedly been observed in both the rhyolite and basalt units, and appears to be related to major normal faulting that displayed vertical displacements of up to 50m. At Red Eagle Mountain, zones of such veining and brecciation (and associated hydrothermal alteration) have reportedly been identified over downhole widths of up to 40m.

 

A total of 1,558 diamond core and RC cutting samples (inclusive of QAQC) are currently pending customs clearance for export to ALS Laboratories for gold assay, with results also anticipated in Q2.

 

Following completion of the programmes, AMED Fund III has converted a further US$1.5 million of the existing loan amount to 668,763 preference shares. As a result, Oriole's holding in TSR has been reduced from 11.80% to 10.61%. Further work at the projects is pending receipt and assessment of all outstanding results

 

 

For further information on TSD's projects in Djibouti, please see the following page of the Company's website https://orioleresources.com/investments/pandora-assaleyta-hesdaba/  

 

 

Competent Persons Statement  

The data for this release has been provided by Thani Stratex Djibouti Limited as a summary and no review has been made of the underlying raw data. 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. All the drill holes referenced are inclined and all reported intervals are downhole intervals; the true thickness of the intersections is currently unknown. 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: +44 (0)20 7830 9650

Blytheweigh (IR/PR contact)

Tim Blythe / Megan Ray / Rachael Brooks

 

Tel: +44 (0)20 7138 3204

Grant Thornton UK LLP

Samantha Harrison / Seamus Fricker / George Grainger

 

Tel: +44 (0)20 7383 5100

Shard Capital Partners LLP

Damon Heath / Erik Woolgar / Isabella Pierre

 

Tel: +44 (0)20 186 9900

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 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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