Senala Joint Venture Update

RNS Number : 9614I

Oriole Resources PLC

18 August 2021

 

Oriole Resources PLC 

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

Senala Joint Venture Update -

Year 4 RC drilling delivers further excellent intersections at Faré

Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, is pleased to provide 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% interest (announcement dated 1 March 2018). IAMGOLD is currently in Year 4 of that earn-in and has this year completed more than 80% of a two-phase exploration programme for a planned c.11,000 metres ('m') at the Faré and Madina Bafé prospects.

Further to its announcement on 16 August 2021, which reported diamond drilling results of up to 70.00m grading 1.46 grammes per tonne ('g/t') gold ('Au') and 10.00m grading 1.69 g/t Au, respectively, at Faré and Madina Bafé, the Company today reports partial results from the 4,854m Phase 1 reverse circulation ('RC') drilling programme at Faré. Results for 38 out of 42 RC holes, drilled to test near-surface gold mineralisation at the Faré North and Faré Far South anomalies have delivered intersections of up to 11.00m grading 1.22 g/t Au and 35.00m grading 3.61 g/t Au respectively.

Results for the remaining four RC holes, drilled on the southernmost line at Faré Far South, are anticipated later in Q3, alongside results for an initial 3,111m of the planned 5,000m Phase 2 RC drilling at Madina Bafé. The remainder of the programme at Madina Bafé will be drilled in Q4.

Summary

· Phase 1 RC drilling results received for 38 out of 42 holes at the Faré prospect, drilled to target near-surface mineralisation at the Faré North and Faré Far South gold anomalies. Best intersections (using 0.3 g/t Au cut off) include:

Faré North

o  11.00m grading 1.22 g/t Au from 5.00m (FARC21-0082)

o  2.00m grading 11.74 g/t Au from 84.00m, including 1.00m grading 22.67 g/t Au (FARC21-0101)

Faré Far South

o  14.00m grading 1.62 g/t Au from 72.00m including 9.00m grading 2.29 g/t Au from 76.00m (FARC21-0109)

o  14.00m grading 2.09 g/t Au from 4.00m including 7.00m grading 3.58 g/t Au from 9.00m (FARC21-0111)

o  35.00m grading 3.61 g/t Au from 59.00m including 18.00m grading 6.46 g/t Au from 69.00m (FARC21-0112)

o  15.00m grading 1.25 g/t from 104.00m including 6.00m grading 2.49 g/t from 108.00m (FARC21-0113)

· The results, which include multiple wide zones of near-surface mineralisation, continue to support the potential for the definition of open-pittable gold resources at Faré.

· Results are awaited for four RC holes drilled on the southern fence line over the Faré Far South anomaly.

· The Phase 2 RC drilling programme at Madina Bafé is ongoing:

o  3,111m of the planned 5,000m RC drilling programme completed in 48 holes. Results are awaited;

o  Remainder of the programme to be completed in Q4 2021, after the seasonal rains have eased.

· Subject to completion of the Year 4 expenditure plan, IAMGOLD will have the right to acquire a 51% interest in the Project.

· A selection of drill plans for Faré plus a cross section for the Faré Far South anomaly can be viewed at the following link:  http://www.rns-pdf.londonstockexchange.com/rns/9614I_1-2021-8-17.pdf

Oriole Resources CEO, Tim Livesey, said: "Excellent results from this new RC drilling programme, targeting previously identified but as yet unquantified gold mineralisation at FaréFar South and FaréNorth, continue to support our belief that the c.6 km trend at the Faré prospect has ample potential to host a stand-alone resource. 

"Not only are these RC drilling results indicative of the typical grades considered mineable in West African orogenic gold systems but the intersection of significant mineralised widths, often close to surface, points to the huge untapped potential at Faré. 

"We also look forward to sharing the results from the Madina Bafé prospect in due course."

Further Details

Under the terms of an Option Agreement on the 472.50km² Senala licence, IAMGOLD is currently in Year 4 of its investment period with a planned exploration budget of at least US$1.672 million (announcement dated 29 March 2021). In July, the Company reported that IAMGOLD had completed Phase 1 of its Year 4 programme at the northernmost Faré prospect, where the Company has previously defined anomalous mineralisation over a strike length in excess of 6 km (announcements dated 4 December 2012 and 6 June 2016), and was significantly advanced on its Phase 2 programme at the Madina Bafé prospect, located c. 40km to the south.

Earlier this month, the Company reported Phase 1 diamond drilling results that confirmed the orogenic gold system at the main Faré South anomaly continues to a depth of at least 350m below surface. Best results included 70.00m grading 1.46 g/t Au (announcement dated 16 August 2021).

The Phase 1 programme also comprised a further 4,854m RC drilling in 42 holes that was focused on testing the system along strike at Faré North and Faré Far South. The Company today reports results for 38 holes as detailed in Table 1 below. Best intersections include 11.00m grading 1.22 g/t Au from Faré North and 35.00m grading 3.61 g/t Au including 18.00m grading 6.46 g/t Au from Faré Far South. The results are particularly encouraging for the Faré Far South anomaly, located c.1 km to the southwest of Faré South, where the system has been drill-tested at depth for the first time.

Table 1. Significant intersections (using 0.3 g/t Au cut off) from Year 4 RC drilling at Faré

Hole ID	Target	Azimuth (°)	Inclination (°)	From (m)	To (m)	Au (ppm)	Au Interval*
FARC21-0080	Faré North	300	-50	No significant intersections
FARC21-0081	Faré North	300	-50	No significant intersections
FARC21-0082	Faré North	300	-50	0.00	34.00	0.80	34.00m @ 0.80 g/t
including				5.00	16.00	1.22	11.00m @ 1.22 g/t
including				20.00	21.00	1.08	1.00m @ 1.08 g/t
including				33.00	34.00	1.01	1.00m @ 1.01 g/t
FARC21-0083	Faré North	300	-50	21.00	22.00	0.82	1.00m @ 0.82 g/t
and				31.00	32.00	0.31	1.00m @ 0.31 g/t
and				44.00	55.00	0.62	11.00m @ 0.62 g/t
including				47.00	48.00	1.51	1.00m @ 1.51 g/t
FARC21-0084	Faré North	300	-50	90.00	92.00	0.56	2.00m @ 0.56 g/t
FARC21-0085	Faré North	300	-50	No significant intersections
FARC21-0086	Faré North	300	-50	No significant intersections
FARC21-0087	Faré North	300	-50	No significant intersections
FARC21-0088	Faré North	300	-50	80.00	81.00	2.54	1.00m @ 2.54 g/t
and				97.00	98.00	0.55	1.00m @ 0.55 g/t
FARC21-0089	Faré North	300	-50	46.00	47.00	0.40	1.00m @ 0.40 g/t
FARC21-0090	Faré North	300	-50	9.00	10.00	0.69	1.00m @ 0.69 g/t
and				35.00	36.00	0.90	1.00m @ 0.90 g/t
FARC21-0091	Faré North	300	-50	38.00	40.00	0.60	2.00m @ 0.66 g/t
FARC21-0092	Faré North	300	-50	No significant intersections
FARC21-0093	Faré North	300	-50	No significant intersections
FARC21-0094	Faré North	300	-50	No significant intersections
FARC21-0095	Faré North	300	-50	No significant intersections
FARC21-0096	Faré North	300	-50	69.00	70.00	1.22	1.00m @ 1.22 g/t
FARC21-0097	Faré North	300	-50	61.00	62.00	0.48	1.00m @ 0.48 g/t
FARC21-0098	Faré North	300	-50	19.00	20.00	1.55	1.00m @ 1.55 g/t
and				25.00	26.00	0.30	1.00m @ 0.30 g/t
and				39.00	41.00	0.56	2.00m @ 0.56 g/t
FARC21-0099	Faré North	300	-50	7.00	8.00	0.37	1.00m @ 0.37 g/t
and				12.00	15.00	0.42	3.00m @ 0.42 g/t
and				36.00	37.00	1.09	1.00m @ 1.09 g/t
and				49.00	50.00	0.81	1.00m @ 0.81 g/t
and				87.00	88.00	0.41	1.00m @ 0.41 g/t
and				91.00	92.00	0.78	1.00m @ 0.78 g/t
FARC21-0100	Faré North	300	-50	22.00	24.00	1.67	2.00m @ 1.67 g/t
and				53.00	54.00	0.49	1.00m @ 0.49 g/t
and				58.00	59.00	1.01	1.00m @ 1.01 g/t
and				68.00	69.00	0.45	1.00m @ 0.45 g/t
FARC21-0101	Faré North	300	-50	67.00	70.00	0.46	3.00m @ 0.46 g/t
and				73.00	76.00	0.78	3.00m @ 0.78 g/t
including				73.00	74.00	1.75	1.00m @ 1.75 g/t
and				84.00	86.00	11.74	2.00m @ 11.74 g/t
including				84.00	85.00	22.67	1.00m @ 22.67 g/t
and				109.00	110.00	3.61	1.00m @ 3.61 g/t
FARC21-0102	Faré North	300	-50	44.00	45.00	1.22	1.00m @ 1.22 g/t
and				82.00	83.00	0.48	1.00m @ 0.48 g/t
FARC21-0103	Faré North	300	-50	50.00	51.00	0.67	1.00m @ 0.67 g/t
and				60.00	61.00	0.48	1.00m @ 0.48 g/t
FARC21-0104	Faré Far South	300	-50	No significant intersections
FARC21-0105	Faré Far South	300	-50	No significant intersections
FARC21-0106	Faré Far South	300	-50	No significant intersections
FARC21-0107	Faré Far South	300	-50	No significant intersections
FARC21-0108	Faré Far South	300	-50	59.00	60.00	0.32	1.00m @ 0.32 g/t
FARC21-0109	Faré Far South	300	-50	56.00	59.00	1.23	3.00m @ 1.23 g/t
including				56.00	57.00	2.33	1.00m @ 2.33 g/t
and				60.00	61.00	0.30	1.00m @ 0.30 g/t
and				72.00	86.00	1.62	14.00m @ 1.62 g/t
including				76.00	85.00	2.29	9.00m @ 2.29 g/t
FARC21-0110	Faré Far South	300	-50	8.00	9.00	0.30	1.00m @ 0.30 g/t
and				22.00	23.00	0.51	1.00m @ 0.51 g/t
and				57.00	58.00	1.18	1.00m @ 1.18 g/t
and				63.00	64.00	1.34	1.00m @ 1.34 g/t
FARC21-0111	Faré Far South	300	-50	4.00	18.00	2.09	14.00m @ 2.09 g/t
including				9.00	16.00	3.58	7.00m @ 3.58 g/t
and				23.00	27.00	1.65	4.00m @ 1.65 g/t
including				24.00	26.00	2.61	2.00m @ 2.61 g/t
and				37.00	40.00	1.22	3.00m @ 1.22 g/t
including				37.00	38.00	2.14	1.00m @ 2.14 g/t
including				39.00	40.00	1.31	1.00m @ 1.31 g/t
and				106.00	107.00	0.47	1.00m @ 0.47 g/t
FARC21-0112	Faré Far South	300	-50	52.00	53.00	0.53	1.00m @ 0.53 g/t
and				59.00	94.00	3.61	35.00m @ 3.61 g/t
including				69.00	87.00	6.46	18.00m @ 6.46 g/t
and				99.00	100.00	2.44	1.00m @ 2.44 g/t
and				104.00	105.00	0.46	1.00m @ 0.46 g/t
and				108.00	110.00	0.35	2.00m @ 0.35 g/t
FARC21-0113	Faré Far South	300	-50	50.00	55.00	0.70	5.00m @ 0.70 g/t
including				52.00	53.00	1.44	1.00m @ 1.44 g/t
and				65.00	66.00	0.69	1.00m @ 0.69 g/t
and				79.00	80.00	0.30	1.00m @ 0.30 g/t
and				104.00	119.00	1.25	15.00m @ 1.25 g/t
including				108.00	114.00	2.49	6.00m @ 2.49 g/t
FARC21-0114	Faré Far South	300	-50	Full results awaited
FARC21-0115	Faré Far South	300	-50	Full results awaited
FARC21-0116	Faré Far South	300	-50	3.00	4.00	0.61	1.00m @ 0.61 g/t
and				7.00	8.00	0.48	1.00m @ 0.48 g/t
and				24.00	27.00	0.41	3.00m @ 0.41 g/t
FARC21-0117	Faré Far South	300	-50	Full results awaited
FARC21-0118	Faré Far South	300	-50	Full results awaited
FARC21-0119	Faré Far South	300	-50	No significant intersections
FARC21-0120	Faré Far South	300	-50	No significant intersections
FARC21-0121	Faré Far South	300	-50	No significant intersections

* Intervals greater than 1m in wide, calculated using a 0.3 g/t Au cut-off and no more than 5m consecutive (50% total) internal dilution. True widths are approximately 77% of the reported downhole interval.

As at Faré South, the results reported today have confirmed wide zones of near-surface gold mineralisation at both Faré North and Faré Far South, confirming the prospectivity of all three targets. The majority of the significant intersections fall within the oxide zone, which continues down to c.110m below surface, supporting the case for open-pit mining techniques should an economic resource be identified.

Results for the remaining four RC holes (namely FARC21-0114, FARC21-0115, FARC-0017 and FARC21-018), drilled on the southern fence line over the Faré Far South anomaly, are anticipated later in Q3.

At the southernmost Madina Bafé prospect, Phase 2 of the Year 4 programme has focussed on testing a northeast-trending structural corridor where recent artisanal mining activity has been identified in the immediate vicinity of the Company's previous drilling that returned a best intersection of 9.60m grading 16.08 g/t Au from 15.10m in hole MBDD-002 (announcement dated 16 July 2014).

Results reported earlier this month for 493m diamond drilling in three holes delivered a best intersection of 10.00m grading 1.69 g/t Au from 21.00m in hole MBDD21-017 (announcement dated 16 August 2021). Phase 2 RC drilling is still underway at Madina Bafé, with 3,111m (in 48 holes) of a planned 5,000m programme completed to date (announcement dated 29 July 2021). Results for these holes are awaited and IAMGOLD anticipates restarting the programme in October, following the seasonal rains.

Subject to completion of the Year 4 expenditure plan, IAMGOLD will have the right to acquire a 51% interest in the Project and will thereafter need to spend a further US$4 million over two years to earn a 70% interest.

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 (Executive Director, Exploration & 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 / 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, Wapouzé and Central Cameroon 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. The Company also 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.

 

END

 

 

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