Drilling Confirms Mineralisation at Madina Bafé

RNS Number : 1774P

Oriole Resources PLC

06 February 2019

 

Oriole Resources PLC 

('Oriole Resources' or 'the Company')

Drilling Confirms Mineralisation at Madina Bafé, Dalafin

Oriole Resources, the AIM-quoted exploration company operating in Africa and Europe, is pleased to provide a positive drilling update on its 85%-owned Dalafin project in the Kédougou-Kéniéba inlier of eastern Senegal, where IAMGOLD Corporation ('IAMGOLD') has the option to spend up to US$8M to earn a 70% interest (announcement dated 1 March 2018).

In Q4-2018, IAMGOLD completed an initial phase of aircore ('AC') drilling at the Madina Bafé prospect, which outlined multiple gold-in-soil anomalies (>20ppb Au) including a c.1.5km WNW-trending anomaly in south-east (announcement dated 25 October 2018). Initial results from a follow-up c.3,500m reverse circulation ('RC') and diamond ('DD') drilling programme has confirmed that the mineralisation continues at depth, delivering a best intersection of 8 m at 2.56 g/t Au.

Highlights:

·    2,260m RC drilling in 24 holes and 507m diamond drilling in 4 holes completed at Madina Bafé prospect;

·    Best results include:

o  8m @ 2.56 g/t (MBDD-013)

o  6m @ 1.61 g/t (MBDD-014)

o  2m @ 9.43 g/t Au and 2m @ 1.40 g/t (MBDD-0015)

o  1m @ 1.05 g/t Au (MBRC-171)

o  1m @ 2.17 g/t Au and 1m @ 1.08 g/t Au (MBRC-172)

·    Highest grades associated with quartz and quartz-tourmaline veins;

·    Results for 1 DD hole (MBDD-016) pending;

·    6 RC drill holes yet to be drilled over artisanal mining site in the north-east.

Oriole Resources CEO, Tim Livesey, said: 'We are encouraged to see positive results from the drilling results received so far for the Madina Bafé area of the Dalafin licence. The intersections confirm and extend the known areas of anomalism and as such continue to add to our understanding and confidence in this target area.

Although the Madina Bafé area is the current focus for IAMGOLD, due to its proximity to their Boto development project to the immediate east, we are also looking forward to future work on the other anomalies in the north of the licence - notably at Faré, where previous work has also shown very promising results.

These initial results from the Madina Bafé are further evidence of the increasing value of the Dalafin project, as well as the wider Oriole portfolio, and we look forward to working with IAMGOLD through the year to further progress the exploration prgramme.'

Further details

In Q4-2018, IAMGOLD commenced the second stage of its multi-phase drilling programme for a planned 3,000m RC and 500m diamond drilling (announcement dated 6 December 2018). The RC programme was designed to target three main zones:

·    A c.1.5km long, broadly west-northwest-trending anomaly (>20ppb Au) in the southeast defined by first phase AC drilling, and showing a correlation with bismuth and molybdenum anomalism;

·    An artisanal mining site in the northeast of the licence which was identified during AC drill pad construction and returned 4.11 g/t Au, 1.2 g/t Au and 0.59 g/t Au from grab samples of sheared quartz-tourmaline veins within a granite-granodiorite contact in the north-east;

·    A 50-100 ppb Au gold anomaly extending over c.400m and located c.2.5km to the southwest of the artisanal site, related to a parallel northeast trending shear. 

To date, a total of 24 RC holes for 2,260m have been completed. The majority of the holes were drilled towards the north-west, at a 50m hole spacing and to a downhole depth of 100m (60-degree declination; true depth 87m). Significant mineralisation (>0.3 g/t Au cut-off) was identified in 5 holes (Table 1). Results have confirmed near-surface mineralisation along the 1.5km anomaly in the south-east, with best intersections of 1m @ 2.17 g/t Au and 1m @ 1.08 g/t Au (MBRC-172).

Table 1: Significant RC Drilling Results for Madina Bafé - IAMGOLD 2018 programme

Hole ID	Azimuth (°)	Dip (°)	From (m)	To (m)	Au (ppm)	Interval*
MBRC-170	20	-60	67	69	0.76	2m @ 0.76 g/t Au
MBRC-171	20	-60	8	9	1.05	1m @ 1.05 g/t Au
MBRC-172	20	-60	7	8	2.17	1m @ 2.17 g/t Au
MBRC-172	20	-60	12	13	1.08	1m @ 1.08 g/t Au
MBRC-172	20	-60	29	30	0.56	1m @ 0.56 g/t Au
MBRC-178	20	-60	13	14	0.91	1m @ 0.91 g/t Au
MBRC-186b	330	-60	34	35	0.47	1m @ 0.47 g/t Au

*calculated using a 0.3 g/t Au cut-off.  True widths not known.

The results obtained will be used to help guide further drilling as part of the 2019 drilling programme.

Four diamond holes were also completed for 507m to validate the two best intersections previously reported by Oriole, namely holes MBDD-002 (9.6m@16.08g/t), located within the 1.5km anomaly in the south-east, and MBRC-117 (15m@6.10g/t), located approximately 2km to the west-northwest (Announcement dated 16 July 2014). The holes were drilled towards the east and to a depth of 100m and 150m (87m and 130m true depth) at each target, respectively. Results have confirmed relatively wide zones of orogenic-style mineralisation, with the potential for higher-grade ore shoots. Best results include 8m @ 2.56 g/t (MBDD-013), 6m @ 1.61 g/t (MBDD-014) and 2m @ 9.43 g/t Au and 2m @ 1.40 g/t (MBDD-0015) (Table 2). Samples for MDBB-0016 have been received by Bureau Veritas laboratory in Cote d'Ivoire and the results are anticipated shortly.

Table 2: Significant Diamond Drilling Results for Madina Bafé - IAMGOLD 2018 programme

Hole ID	Azimuth (°)	Dip (°)	From (m)	To (m)	Au (ppm)	Interval*
MBDD-0013	130	-60	5	6	0.36	1m @ 0.36 g/t
MBDD-0013	130	-60	9	10	0.49	1m @ 0.49 g/t
MBDD-0013	130	-60	12	13	0.49	1m @ 0.49 g/t
MBDD-0013	130	-60	15	16	1.16	1m @ 1.16 g/t
MBDD-0013	130	-60	37	40	0.66	3m @ 0.66 g/t
MBDD-0013	130	-60	61	65	0.24	4m @ 0.24 g/t
MBDD-0013	130	-60	76	84	2.56	8m @ 2.56 g/t
MBDD-0014	360	-60	0	1	1.21	1m @ 1.21 g/t
MBDD-0014	360	-60	41	43	1.16	2m @ 1.16 g/t
MBDD-0014	360	-60	47	53	1.61	6m @ 1.61 g/t
MBDD-0014	360	-60	59	60	0.3	1m @ 0.30 g/t
MBDD-0014	360	-60	66	67	0.42	1m @ 0.42 g/t
MBDD-0015	360	-60	13	15	1.4	2m @ 1.40 g/t
MBDD-0015	360	-60	42	43	1.41	1m @ 1.41 g/t
MBDD-0015	360	-60	56	58	9.43	2m @ 9.43 g/t
MBDD-0015	360	-60	81	82	0.95	1m @ 0.95 g/t
MBDD-0015	360	-60	88	89	1.3	1m @ 1.30 g/t
MBDD-0015	360	-60	102	103	0.85	1m @ 0.85 g/t

*calculated using a 0.3 g/t Au cut-off. True widths not known.

Analysis of the QAQC data has not highlighted any issues with the accuracy or precision of the data.

It is anticipated that the RC programme will recommence in February 2019. In the meantime, the Company and IAMGOLD are reviewing all the current data and discussing the next steps. 

To date IAMGOLD has spent approximately US$534,000 on exploration, meeting the first year commitment.

For further information, including a Madina Bafé drill plan and a JORC Table 1 please see the Dalafin page of our website https://orioleresources.com/projects/dalafin/.

Deal Terms

Under the terms of the Agreement, AGEM Senegal Exploration Suarl ('AGEM'), a wholly-owned subsidiary of IAMGOLD, is earning-in to an initial 51% interest in the Project by expending US$4m on exploration over 4 years and has the further option to increase its interest to 70% by expending an additional US$4m over the subsequent 2 years. IAMGOLD is initially focusing on exploring the southernmost Madina Bafé prospect which is contiguous with its Boto gold project.

Competent Persons Statement 

The information in this release that relates to Exploration Results has been compiled by, and is based on information reviewed on behalf of the Company, by Issouf Ouedraogo (General Manager for West Africa). Issouf Ouedraogo (AusIMM) is a Competent Person as defined in the JORC code and takes responsibility for the release of this information. The exploration on the Dalafin Project was carried out by AGEM, a wholly-owned subsidiary of IAMGOLD, and the results have not yet been made public. Issouf Ouedraogo has reviewed the information in this announcement and confirms that he is not aware of any new information or data that materially affects the information 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: [phone]
Camarco (IR/PR contact) Gordon Poole / Nick Hennis	Tel: [phone]
Grant Thornton UK LLP Samantha Harrison / Ben Roberts / Niall McDonald	Tel: [phone]
Hannam & Partners Neil Passmore / Andrew Chubb	Tel: [phone]
Turner Pope Investments (TPI) Ltd Ben Turner / James Pope / Andy Thacker	Tel: [phone]

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

 

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