Year 4 Exploration Budget Redirected to Faré
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).
As part of its Year 4 earn-in, IAMGOLD has recently completed a programme of 2,148 metres (‘m’) reverse circulation (‘RC’) drilling at the northernmost Faré prospect (‘Faré’ or the ‘Prospect’). One of three planned fence lines was planned to test the northern extension of the Faré Far South anomaly, which returned up to 35.00m grading 3.61 grammes per tonne (‘g/t’) gold (‘Au’) from the Phase 1 RC programme earlier this year (announcement dated 18 August 2021). Four holes have also been completed for 401m at the Madina Bafé prospect, located c.40km to the south.
·Four diamond holes completed for 401m at Madina Bafé to test the main northeast trending corridor;
· IAMGOLD has refocused the remainder of its Year 4 budget towards further exploration at Faré and has recently completed a 2,160m RC drilling programme in 18 holes;
· Three fence lines were planned to test the north-eastern extension – and potential connectivity – of the three main anomalies at the Prospect;
· Results for both programmes are anticipated early in Q1-2022;
· Subject to completion of the Year 4 expenditure plan, IAMGOLD will have the right to acquire a 51% interest in the Project.
· Updated drill plans for Faré and Madina Bafé can be viewed at the following link: http://www.rns-pdf.londonstockexchange.com/rns/3438T_1-2021-11-23.pdf
Oriole Resources CEO, Tim Livesey, said: “We’re pleased to see IAMGOLD shifting its focus on the remaining programme for Year 4 to expand on its testing of the Faré prospect.
“We believe the results seen to date at Faré indicate that it offers ample space and grade for the development of a robust resource and we look forward to seeing the progress on this additional drill programme.”
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). Earlier this year, IAMGOLD completed Phase 1 of its Year 4 programme at the northernmost Faré prospect (announcement dated 29 July 2021), where the Company has previously defined anomalous mineralisation at three main anomalies (Faré North, Faré South and Faré Far South) over a strike length in excess of 6km (announcements dated 4 December 2012 and 6 June 2016).
The Phase 1 programme comprised 689.50m diamond drilling in two holes, planned to test the depth extension of the main mineralised zone at Faré South, and 4,854m RC drilling in 42 holes, focussed on testing the system along strike at Faré North (three fence lines) and Faré Far South (two fence lines). Results from diamond drilling confirmed the orogenic gold system at the main Faré South anomaly continues to a depth of at least 350m below surface and delivered a best result of 70.00m grading 1.46 g/t Au (announcement dated 16 August 2021).
On the basis of all drilling to date at Faré South, including historical drilling by the Company, the Company recently announced a maiden JORC-compliant Mineral Resource Estimate (‘Maiden MRE’) of 155,000 oz Au grading 1.26 g/t Au in the Inferred category, based on a 0.3 g/t Au cut off and within a US$1,800/oz pit shell (announcement dated 23 August 2021). This Resource sits within a larger JORC-compliant Exploration Target estimate for Faré South of up to 280,000 oz Au grading 1.10 g/t Au. Both estimates remain open at depth and along strike.
Results from the Phase 1 RC drilling programme also confirmed the prospectivity of the Faré North and Faré Far South anomalies, with best reported intersections, respectively, of 11.00m grading 1.22 g/t Au and 35.00m grading 3.61 g/t Au including 18.00m grading 6.46 g/t Au (announcements dated 18 August 2021 and 17 September 2021).
During the year, IAMGOLD has also completed more than 60% of its Year 4 Phase 2 programme, comprising 493m diamond drilling and 3,111m of a planned 5,000m RC drilling, at the southernmost Madina Bafé prospect (‘Madina Bafé’), located c. 40km to the south of Faré. Best results included 10.00m grading 1.69 g/t Au from 21.00m from diamond drilling (announcement dated 16 August 2021) and 2.00m grading 9.36 g/t Au from 40.00m including 1.00m grading 17.70 g/t Au (announcement dated 17 September 2021).
IAMGOLD had anticipated restarting the programme at Madina Bafé, for the remaining 1,889m drilling, in Q4 2021 and in early November, four diamond holes were drilled for 401m to test the north-eastern extension of the corridor. However, the ground conditions at Madina Bafé were deemed too wet to ensure completion of the programme and receipt of results in time for the end of the Year 4 earn-in period.
Accordingly, the Company today announces that IAMGOLD has redirected the outstanding balance of its Year 4 budget to the Faré prospect. A programme of 2,148m of RC drilling has recently been completed in 18 holes at the Prospect, with three fence lines planned to test the northeast extension of the three main anomalies, all of which are open along strike and at depth. The fence line at Faré South was planned to test the system c.300m to the northeast of previous drilling by the Company and c.1km along strike of the Maiden MRE. The fence line at Faré Far South was drilled to test the system c.200m to the northeast of previously reported Phase 1 RC programme, which delivered a best intersection of 35.00m grading 3.61 g/t Au. The last fence was planned to test the north-eastern extension of Faré Northanomaly and has the potential to extend the strike length of the currently defined c.6.6km long system.
Results from the programmes at Faré and Madina Bafé are anticipated early in Q1-2022.
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. The 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.
Oriole Resources PLC
Tim Livesey / Bob Smeeton / Claire Bay
Tel: +44 (0)20 7830 9650
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.
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