(Alliance News) - Oriole Resources PLC has secured a new licence tenure at the Dalafin gold project in Senegal, it said on Tuesday.
The current nine-year licence, with a one-year extension, at Dalafin has now expired. Senegal has now granted a new licence, renamed to Senala but covering the same area as Dalafin.
London-based Oriole said the new tenure lasts for a decade, with a potential two-year special extension. The terms of the new licence are the same as before, meaning Oriole still holds 85% and partner Energy & Mining Corp SA 15%.
"We are delighted to have received approval for our Senala licence application and to have received support of the Senegalese government once again. Not only does the new licence provide security of tenure for a minimum of four years, we have been able to retain the entire licence area," commented Oriole Chief Executive Tim Livesey.
"We look forward to continuing the exploration programme at Senala, in particular at the Madina Bafe and Fare prospects, which have previously delivered best drilling intersections of 9.6 metres at 16.08 grams per tonne gold and 96 metres at 1.51 grams per tonne gold respectively. This extensive licence area lies within a highly-endowed gold region of eastern Senegal, where there has been significant interest and M&A activity in recent months," he added.
Oriole shares were 1.2% higher on Tuesday afternoon in London at a price of 0.49 pence each.
Canada's IAMGOLD Corp currently has an earn-in at the project. It has the option to spend up to USD8 million on exploration work to get a 70% stake.
By George Collard; georgecollard@alliancenews.com
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Oriole Resources (ORR)