IAMGOLD Commences Second Option Work Programme

RNS Number : 8521L

Oriole Resources PLC

18 May 2022

 

 Oriole Resources PLC 

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

IAMGOLD Commences Second Option Work Programme at Senala

Oriole Resources PLC (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') has the option to spend up to US$8 million to earn a 70% interest (announcement dated 1 March 2018).

Highlights

· The Company confirms IAMGOLD's US$4 million First Option expenditure at Senala;

· The route to formalising IAMGOLD's 51% interest in Senala is currently being reviewed;

· IAMGOLD has commenced its Second Option to spend a further US$4 million by 28 February 2024;

· A US$1.5 million auger programme is already underway at Faré, as part of the Year 5 exploration programme, for a planned 9,600 metre ('m') and is expected to be completed by the end of May;

· The campaign will test the extent of the sub-surface anomalism along strike of the existing known targets;

· Two samples will be collected per hole to assess the underlying geology and identify potential extensional gold anomalism.

Tim Livesey, CEO of Oriole, commented: "We are very pleased that IAMGOLD has continued its investment at Senala. The company's confidence in the prospectivity of the Faré area, underpinned by the excellent 2021 drilling results, matches our own belief that there is significant potential for the development of a standalone target. 

"There are a few administrative steps required to complete the formalisation of IAMGOLD's 51% ownership but we support its decision to continue the exploration programme at pace whilst we finalise the structure. 

"We look forward to sharing the results with the market as they become available."

Further Details

In February, IAMGOLD provided notice to the Company that it had duly exercised the First Option outlined in the Option Agreement dated 28 February 2018 (the 'Agreement') by incurring expenditures in excess of US$4 million within the first four years (announcement dated 21 February 2022). Following a review of that expenditure, the Company today confirms that IAMGOLD has met its First Option commitment and now has the right to a 51% interest in Senala.

Prior to the First Option exercise process being completed, Oriole holds an 85% net attributable interest in the Senala licence through its joint venture company, Stratex-EMC S.A. and the Company's joint venture partner, Energy and Mining Corporation S.A. ('EMC S.A.'), holds the remaining 15% interest. Discussions are underway between the parties to the Agreement, being the Company, IAMGOLD and EMC S.A., as to the most appropriate method for the change in the beneficial interest in the Project to be effected and the corporate structure that is to be established, as well as the resultant dilutionary impact on Oriole and EMC S.A. Updates on this process will be provided in due course. 

In the meantime, IAMGOLD has proceeded with its Year 5 exploration programme at Senala. The programme will be focussed predominantly on the Faré prospect, where the Company has previously reported best intersections including 70.00m grading 1.46 g/t gold ('Au') and 35.00m grading 3.61 g/t Au and has reported a maiden JORC-compliant Resource and Exploration Target for the Faré South anomaly (announcement dated 23 August 2021).

The programme will initially comprise a planned 9,600m auger-drilling, with two samples being collected per hole (holes drilled to an average depth of 8m) to assess the sub-surface geology and to identify potential extensions to the existing mineralisation. Drilling will predominantly focus on testing the strike extension (southwest and northeast) of the main circa six kilometre-long structure at Faré and a grid has also been planned to test a gold-in-soil-sampling anomaly (previously identified by the Company) circa three kilometre to the east of Faré. The southwest and northeast extension of the system will be sampled using a 400m x 50m grid, moving to a 400m x 100m spacing further to the north (outside of the currently-defined limits of Faré) and over the eastern anomaly. The budget for the programme is US$1.5 million and is expected to be completed by the end of May.

A map showing the location of the auger drilling programme can be viewed at the following link:
http://www.rns-pdf.londonstockexchange.com/rns/8521L_1-2022-5-17.pdf

Having now committed to the Second Option period, as outlined in the Agreement, IAMGOLD has the option to spend US$4 million on exploration by 28 February 2024 to earn an additional 19% interest in Senala for an aggregate 70% interest in the Project.

** 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]
BlytheR ay  (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 years 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, and it continues to assess new opportunities in both regions.

 

END

 

 

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