Senala Exploration Update

RNS Number : 0813B

Oriole Resources PLC

29 September 2022

 

 Oriole Resources PLC 

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

Senala Exploration Update

Oriole Resources (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, is pleased to provide an update on its Senala gold project ('Senala' or the 'Project') in Senegal, where joint venture partner IAMGOLD Corporation ('IAMGOLD') is in the penultimate year of a six-year Option Agreement to spend up to US$8 million in return for a 70% interest in the Project (announcement dated  1 March 2018 ).

Highlights

· Formalisation of IAMGOLD's 51% interest in Senala is currently underway, following confirmation of the first US$4 million expenditure commitment on the Project ('First Option') having been met in Q1-2022;

· Earlier this year, IAMGOLD commenced its Second Option to spend a further US$4 million by 28 February 2024 and, as part of that commitment, it has recently completed a 10,695 metre ('m') auger drilling programme, in 1,307 holes, at the Faré prospect;

· Gold assays for 2,551 samples have identified multiple structurally controlled gold anomalies outside of the previously identified footprint at Faré:

o  The majority of these newly identified anomalies follow the same north-easterly trend as the existing Faré North, Faré South and Faré Far South mineralisation.

o  The longest of these, a c.1.3 kilometre ('km') anomaly to the north-east of Faré North, is associated with a significant, >2km-long, arsenic anomaly;

· Further details on the next work programme at the Project are awaited. All anomalous trends will be reviewed and prioritised for further work as merited;

· IAMGOLD's total investment in the Project currently stands at approximately US$6.50 million.

Tim Livesey, CEO of Oriole, commented: "It's great to see expansion of the gold anomalism in the vicinity of the Faré prospect, as the recent round of auger drilling shows. The auger samples were all taken within a few metres of surface, effectively testing below the iron-cemented cover rocks, to provide insight into the potential location of further gold mineralisation at depth.  

"With several targets to follow up on, these results again indicate the potential for the Faré area to host a stand-alone resource.

"This portion of the Senala licence continues to show robust value add, with capacity to easily expand the existing maiden resource by a programme of infill drilling on the existing Faré North, Faré South and Faré Far South targets."

2022 auger drilling results (for gold and arsenic) at the Faré prospect

Further Details

In Q1 2022, IAMGOLD exercised its First Option to earn an initial 51% interest in Senala b y incurring exploration expenditure in excess of US$4 million within the first four years of the 2018 Option Agreement (announcements dated 21 February 2022 and 18 May 2022 ). Formalisation of that interest is currently underway.

In May, IAMGOLD commenced its Year 5 exploration programme at the Project and has recently completed a 10,695m auger drilling programme (in 1,307 holes) at the Faré prospect, where the Company has previously reported best drill intersections including 70.00m grading 1.46 grammes per tonne ('g/t') gold ('Au') and 35.00m grading 3.61 g/t Au (announcements dated 16 and 18 August 2021). The programme was predominantly focussed on testing the strike (southwest and northeast) and eastward extension of the main c. 6km-long structure at Faré.  

Holes were drilled to an average depth of eight metres, with up to three samples collected per hole to assess the underlying geology and identify potential extensional gold anomalism. Gold assays for 2,551 samples have identified several 0.4-1.3km-long, structurally controlled gold anomalies (using a cut-off grade of 10 parts per billion ('ppb') Au) outside of, and mostly parallel or sub-parallel to, the previously-identified geochemical footprint at Faré. The longest anomaly, located c.3km to the north-east of Faré North, has defined a northeast-southwest trend subparallel to the main Far é South target that is host to a maiden JORC-calculated Mineral Resource Estimate ('MRE') and Exploration Target (announcement dated 23 August 2021 ) . This c.1.3km-long anomaly shows a good correlation with a significant (at least 2km-long) arsenic anomaly and IAMGOLD is currently undertaking further analysis to better understand the relationship between the multi-elements data, gold anomalies, lithology and structures. The highest-grading sample, located c.1.5km east-northeast of the Faré South MRE, yielded 80 ppb Au and appears to be related to the same structural corridor that passes through the main conceptual pit shell for the MRE, and also continues eastward into neighbouring licences. The associated QAQC for this programme h as not been reviewed by Oriole. All anomalies will be reviewed and prioritised for further work as merited.

To date, IAMGOLD has spent approximately US$6.5 million at Senala and is required to spend a further US$1.5 million on exploration by 28 February 2024 in order to earn a total 70% interest in the Project. Further details on the planned follow-up programmes at the Project are awaited.

Auger drilling in relation to the Kédougou-Kéniéba Inlier and the surrounding projects

** ENDS **

Competent Persons Statement  

The technical information in this release that relates to Exploration Results and the planned exploration programme has been compiled by Claire Bay (Executive Director, 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 to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. 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]
BlytheRay (IR/PR contact) Tim Blythe / Megan Ray / Rachael Brooks	Tel: [phone]
Grant Thornton UK LLP Samantha Harrison / George Grainger / Ciara Donnelly	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 in West Africa. It is focused on early-stage exploration in Cameroon (Bibemi, Wapouzé and Central Licence Package 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. Under the terms of the Option Agreement, IAMGOLD has recently met its first commitment by spending US$4 million within an initial four year period and will shortly acquire a 51% interest in Senala. The Company also has several interests and royalties in companies operating throughout Africa and Turkey that could deliver future cash flow.

 

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