(Alliance News) - Oriole Resources PLC on Thursday said its joint venture partner IAMGOLD Corp is to shortly begin a year three development programme.
In March 2018, Canada's IAMGOLD signed an option agreement in which it can earn a 70% stake in the Senala gold project in Senegal in return for spending USD8 million on the asset.
IAMGOLD has since then spent USD1.5 million, and must spend USD1 million in the third year of the agreement to keep it in "good standing", Oriole said.
Oriole recently secured a new licence at the project, securing the site for another ten years, meaning IAMGOLD is to press ahead with the next stage of work.
IAMGOLD has been exploring the Madina Bafe prospect in the south of Senala since signing the earn-in agreement. The 2019/2020 work programme was finished in November, with drilling taking place at the Saroudia prospect to the north of Madina Bafe.
IAMGOLD, Oriole said, was testing a possible extension to surface gold mineralisation already found, but no trends were found and so no further work is planned on Saroudia.
IAMGOLD is to now move northwards again to drill at the Fare prospect. Oriole said Fare is the "most advanced" site within Senala and it believes it could host its own standalone deposit.
Oriole shares were 8.9% lower on Thursday morning in London at 0.26 pence each.
By George Collard; georgecollard@alliancenews.com
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