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Oriole Resources PLC (ORR)

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Monday 19 November, 2018

Oriole Resources PLC

Cameroon Update

RNS Number : 6917H
Oriole Resources PLC
19 November 2018
 

Oriole Resources PLC 

('Oriole Resources' or 'the Company')

 

Cameroon Update: Completion of in-Country Prep Lab

and Commencement of Trenching at Bibemi

 

Oriole Resources, the AIM-quoted exploration company operating in Africa and Europe, is pleased to provide an update on its activities in Cameroon, following the signing of an option agreement ('Option Agreement') on two early stage gold projects, Bibemi and Wapouzé, earlier this year (Announcement dated 12 June 2018). The Company's local Cameroonian partner, Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et Géophysiques SARL ('BEIG3') has recently completed the installation of a sample preparation laboratory in Yaoundé and a total of 454 rock samples collected during July and August have now been prepared at the new lab and sent for gold analysis at Bureau Veritas in Cote d'Ivoire ('Bureau Veritas'). A 5,500 m initial trench programme is now underway at the more advanced Bibemi licence ('Bibemi'), where previous operator Reservoir Minerals Inc. ('Reservoir') had identified three parallel mineralised trends over a strike distance of c.20km.

 

Highlights

-      Local partner BEIG3 has completed the installation of a sample prep laboratory in Yaoundé, at no cost to Oriole. The laboratory will result in significant cost savings across the life of the programme;

-      Mapping and rock sampling completed on Bibemi during July and August - 454 rock samples have been prepared at the new laboratory and dispatched to Bureau Veritas; results expected next month;

-      Follow-up trenching has commenced at Bibemi:

5,500 m  Phase 1 infill and extensional trenching programme currently testing two priority zones within the central Bakassi zone on 200 m spacing - results anticipated in Q1-19;

More detailed Phase 2 infill trenching to be conducted in Q1-19 over the 2 priority zones at a 100 m spacing to enable better delineation of key mineralised veins;

-     Systematic soil sampling to commence at Wapouzé licence ('Wapouzé') next month.

 

Oriole CEO Tim Livesey, said: "We are very pleased that BEIG3 has completed the installation of a sample prep facility, at no cost to Oriole, as a step to both speeding up the processing time and reducing the cost of sample transport. The facility has been reviewed and approved by Bureau Veritas, and by our West African exploration manager, Issouf Ouedraogo, who is acting as Oriole CP on the project. 

 

The early works in the field in July and August at Bibemi have confirmed the close proximity of the bedrock interface to surface and strengthened our relative understanding of the host structures.  We expect that the two phase trenching in these areas will lead to better definition of the existing zones and possible extensions of those areas currently supported by soil anomalies alone. It is the nature of exploration in new frontiers that the programme adapts to increased data and interpretations.  Consequently we have taken the decision to defer the drilling programme into 2019, after both trenching programmes are completed.

 

Next month we will also commence systematic soil sampling at the less advanced Wapouzé prospect; this is ahead of schedule "

 

Further Information

Oriole's partner in Cameroon, BEIG3, has recently completed the installation of an in-country sample preparation laboratory. The laboratory in Yaoundé enables the preparation of crush (500g) and pulp (60g) sub-samples from 2-3 kg bulk field samples, which are much more cost-efficient to ship and should result in significant savings for the Company across the life of the programme. The laboratory has been approved by Bureau Veritas, which is internationally accredited (ISO 9001), as well as by the Company's West Africa Manager Issouf Ouedraogo, a Competent Person as defined in the JORC code.

Since signing the earn-in agreement in May this year, Oriole has focused on the more advanced Bibemi project, where gold mineralisation is predominantly hosted in quartz and quartz-tourmaline veins within metamorphosed Pan African volcano-sedimentary rocks. Earlier trenching by Reservoir returned best results including 6.2m @ 8.05g/t Au and 8.5m @ 4.04 g/t Au (Reservoir announcement dated 18 November 2014). During its due diligence, Oriole confirmed that the veins and host bedrock are either outcropping or close to surface (<2m), with very limited overburden material or lateritic profile development. As such, the historical soil geochemical data collected by Reservoir is deemed by the Company to be a true indication of mineralisation within the immediately underlying bedrock.

In July and August, the Company undertook mapping and a rock sampling programme focussed on the central Bakassi area, where Reservoir had previously identified three parallel NNE-trending gold mineralised trends (>10 ppb Au halos around stronger, >100 ppb Au zones that extend up to 2 km, in places confirmed by outcropping veins) over a cumulative strike distance of c.20km. A total of 454 rock chips samples were collected and have been crushed and split to 500g sub-samples at the new sample preparation laboratory. These have now been shipped, together with 45 QAQC samples representing 10% QAQC samples, to Bureau Veritas for Fire Assay analysis and results are anticipated next month.

Oriole has now commenced a 5,500 m Phase 1 trenching programme at Bakassi, focused on the infill and extension of previously defined 'Zone 1' and 'Zone 2'. Trenching will be conducted on 200 m lines, with 1 m channel samples collected at the bedrock interface. Results are anticipated in early Q1-2019.

 

The Company had previously intended to undertake follow-up drilling in Q1-19 but, recognising that the bedrock interface is so close to surface, has instead decided that it would be more efficient to conduct a further more detailed Phase 2 infill trenching programme on Zone 1 and Zone 2 at a 100m spacing. This trench programme will enable better delineation of the mineralised zones in these high-priority areas, to ensure that the subsequent drill programme can be targeted with higher confidence.

 

Systematic soil sampling will shortly commence on the less advanced Wapouzé licence, located c.20km to the north of Bibemi. Sampling will initially be conducted on a 400m by 100m grid to test the eastern portion of the licence, where previous stream sediment sampling by Reservoir returned 5 samples >25ppb Au over a distance of 8 km. A planned 2,140 samples will be collected from 10-20 cm below the saprolitic bedrock and analysed at Bureau Veritas using a low-level detection Fire Assay method. Results are anticipated H1-19.

 

For further information, including a trench location plan map please see the Bibemi and Wapouzé page of our website https://orioleresources.com/projects/bibemi-and-wapouze/. 

 

Deal Terms

 

Under the terms of the Option Agreement, Oriole can earn an initial 51% of BEIG3's Bibemi and Wapouzé licences (the 'Projects') in Cameroon by funding US$1.56m of exploration over two years (the 'First Option'). Thereafter, Oriole can earn a further 39% for an additional U$1.56m exploration expenditure, or on the completion of a pre-feasibility study on at least one of the Projects, over the subsequent two years (the 'Second Option'). BEIG3 will retain a 10% free carried interest in both Projects up to completion of the Second Option or the completion of a pre-feasibility study on at least one of the Projects.

 

Oriole and BEIG3 will form a JV company managed by a committee, comprising three representatives of Oriole and two representatives of BEIG3 following exercise of the First Option, that will hold and operate the Projects.

 

Oriole will manage the exploration programme and BEIG3 will provide operational and logistical support via a technical services agreement.

 

 

Competent Persons Statement 

The information in this release that relates to Exploration Results has been compiled by on behalf of the Company by Claire Bay (VP Exploration & Business Development). Claire Bay (MGeol, CGeol, EurGeol, FIMMM) is a Competent Person as defined as defined in the JORC code and takes responsibility for the release of this information. Claire Bay has reviewed the information in this announcement in respect of the exploration on the Cameroon Project that was carried out by Reservoir, and which was disclosed by Reservoir in accordance with the requirements of National Instrument 43-101 (Reservoir News Release on SEDAR dated 18th November, 2014), and confirms that she is not aware of any new information or data that materially affects the information included in the original Reservoir news release and 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: +44 (0)20 7830 9650

Camarco (IR/PR contact)

Gordon Poole / Nick Hennis / Emily Hall

 

Tel: +44 (0)20 3757 4980

Grant Thornton UK LLP

Samantha Harrison / Ben Roberts / Samuel Rowe

 

Tel: +44 (0)20 7383 5100

Hannam & Partners

Neil Passmore / Andrew Chubb

 

Tel: +44 (0)20 7907 8500

Turner Pope Investments (TPI) Ltd

Ben Turner / James Pope / Andy Thacker

Tel: +44 (0)20 3621 4120

 

 

 

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 a number of interests and royalties in companies operating throughout Africa and Turkey and is assessing new opportunities in both regions.

 


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