Last checked at 17 Sep 2021 07:00
Oriole Resources PLC
('Oriole Resources' or 'the Company' or 'the Group')
Senala Joint Venture Update -
Further Results from Year 4 RC drilling at Faré and Madina Bafé
Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, is pleased to provide an update on its Senala 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). IAMGOLD is currently in Year 4 of that earn-in and has this year completed more than 80% of a two-phase exploration programme for a planned c.11,000 metres ('m') at the Faré and Madina Bafé prospects.
Further to the Company's announcement on 18 August 2021, which reported results of up to 35.00m grading 3.61 grammes per tonne ('g/t') gold ('Au') from the Phase 1 reverse circulation ('RC') drilling programme at Faré, the Company today reports the remaining results from that programme, as well as initial results for the Phase 2 RC drilling at Madina Bafé where 3,111m of a planned 5,000m programme has been completed to date. The remainder of the programme at Madina Bafé will be drilled in Q4 2021.
Summary
· Phase 1 RC drilling results received for the final four holes at the Faré prospect, drilled to target near-surface mineralisation at the Faré Far South gold anomaly. Best intersections (using 0.3 g/t Au cut off) include:
o 8.00m grading 1.00 g/t Au from 112.00m including 1.00m grading 2.22 g/t Au and 2.00m grading 1.43 g/t Au (FARC21-0114)
o 7.00m grading 0.68 g/t Au from 42.00m and 1.00m grading 1.74 g/t Au from 74.00m (FARC21-0115)
· The results are from the southernmost fence line at Faré Far South, located c.300m to the southwest of the northernmost fence line which returned results of up to 35.00m grading 3.63 g/t Au (announcement dated 18 August 2021).
· Initial results received for Phase 2 RC drilling programme at Madina Bafé, where 3,111m of a planned 5,000m drilling has been completed to date. Multiple intersections returned from four fence lines planned to test a c.500m strike length. Best results (using 0.3 g/t Au cut off) include:
o 5.00m grading 0.56 g/t Au from 9.00m including 1.00m grading 1.34 g/t Au (MBRC21-196)
o 2.00m grading 9.36 g/t Au from 40.00m including 1.00m grading 17.70 g/t Au (MBRC21-197)
o 4.00m grading 0.98 g/t Au from surface including 1.00m grading 1.96 g/t Au (MBRC21-203)
o 1.00m grading 0.90 g/t Au from 35.00m and 1.00m grading 1.11 g/t Au from 39.00m (MBRC21-239)
· Remainder of the programme to be completed in Q4 2021, after the seasonal rains have eased.
· Subject to completion of the Year 4 expenditure plan, IAMGOLD will have the right to acquire a 51% interest in the Project.
· A selection of drill plans for Faré and Madina Bafé can be viewed at the following link: http://www.rns-pdf.londonstockexchange.com/rns/0792M_1-2021-9-16.pdf
Oriole Resources CEO, Tim Livesey, said: "We are very pleased to see the continuation of mineralisation being evidenced by the second line of RC drilling at Faré Far South, some 300m from the previously announced intersections. This gives support to our idea that there are opportunities for multiple pods of mineralisation along the c.6.3 kilometre Faré trend, which could be combined to provide sufficient resources for a stand-alone development target.
"At Madina Bafé, these early intersections again support the presence of mineralisation and we would hope that additional work could identify the controls on mineralisation in this area."
Further Details
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 anomalies (Faré North, Faré South and Faré Far South) over a strike length in excess of 6 km (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 that 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, Oriole recently announced a maiden JORC-compliant Resource for 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. The Resource and Exploration Target are quoted gross, net attributable to Oriole is currently 85%.
Initial results from the Phase 1 RC drilling programme, related to 38 holes, 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 (announcement dated 18 August 2021).
The Company today reports results for the remaining four RC holes from that programme (namely FARC21-0114, FARC21-0115, FARC-0117 and FARC21-0118), drilled on the southern fence line over the Faré Far South anomaly. The fence line is located c.300m to the southwest of the previously-reported results for Faré Far South and has delivered best intersections (using 0.3 g/t Au cut off) of 8.00m grading 1.00 g/t from 112.00m, including 1.00m grading 2.22 g/t Au and 2.00m grading 1.43 g/t Au (Table 1). As per the previous holes in the programme, the geology is reportedly dominated by diorite, granodiorite and sedimentary lithologies, with strong pyrite mineralisation locally, mainly hosted within the granodiorite. Alteration is dominated by calcite, albite and magnetite.
Table 1. Significant intersections (using 0.3 g/t Au cut off) from Year 4 Phase 1 RC drilling at Faré
Hole ID | Target | Azimuth (°) | Inclination (°) | From (m) | To (m) | Au (ppm) | Au Interval* |
FARC21-0114 | Faré Far South | 300 | -50 | 22.00 | 23.00 | 0.87 | 1.00m @ 0.87 g/t |
and |
|
|
| 26.00 | 27.00 | 0.30 | 1.00m @ 0.30 g/t |
and |
|
|
| 31.00 | 33.00 | 0.70 | 2.00m @ 0.70 g/t |
and |
|
|
| 112.00 | 120.00 | 1.00 | 8.00m @ 1.00 g/t |
including |
|
|
| 114.00 | 115.00 | 2.22 | 1.00m @ 2.22 g/t |
including |
|
|
| 118.00 | 120.00 | 1.43 | 2.00m @ 1.43 g/t |
FARC21-0115 |
|
|
| 1.00 | 4.00 | 0.51 | 3.00m @ 0.51 g/t |
and |
|
|
| 42.00 | 49.00 | 0.68 | 7.00m @ 0.68 g/t |
including |
|
|
| 44.00 | 45.00 | 1.12 | 1.00m @ 1.12 g/t |
and |
|
|
| 64.00 | 65.00 | 0.36 | 1.00m @ 0.36 g/t |
and |
|
|
| 74.00 | 75.00 | 1.74 | 1.00m @ 1.74 g/t |
FARC21-0117 | Faré Far South | 300 | -50 | No significant intersections | |||
FARC21-0118 | Faré Far South | 300 | -50 | No significant intersections | |||
* Intervals greater than 1m wide, calculated using a 0.3 g/t Au cut-off and no more than 5m consecutive (50% total) internal dilution. True widths are approximately 77% of the reported downhole interval.
IAMGOLD has also completed more than 60% of its Year 4 Phase 2 programme, comprising 493m diamond drilling and a planned 5,000m RC drilling, at the southernmost Madina Bafé prospect, located c. 40km to the south of Faré. The programme has focussed on testing a northeast-trending structural corridor where recent artisanal mining activity has been identified in the immediate vicinity of the Company's previous drilling that returned a best intersection of 9.60m grading 16.08 g/t Au from 15.10m in hole MBDD-002 (announcement dated 16 July 2014).
Results for the diamond drilling were announced last month and delivered a best intersection of 10.00m grading 1.69 g/t Au from 21.00m in hole MBDD21-017 (announcement dated 16 August 2021).
The Company today announces initial results for the Phase 2 RC drilling, for which 3,111m has been completed to date in 48 holes (announcement dated 29 July 2021). Multiple intersections have been returned from four fence lines that have tested a c.500m portion of the structural corridor at Madina Bafé (Table 2). Best results include 2.00m grading 9.36 g/t Au from 40.00m including 1.00m grading 17.70 g/t Au (MBRC21-197) and 4.00m grading 0.98 g/t Au from surface including 1.00m grading 1.96 g/t Au (MBRC21-203). Geology observed in the RC holes completed to date shows, from north to south, a large granodiorite unit interbedded with polymictic metasediments that is crosscut by quartz-tourmaline veins. Alteration is reportedly dominated by a hematite, albite and chlorite assemblage associated with disseminated sulphides, predominantly pyrite.
Table 2. Significant intersections (using 0.3 g/t Au cut off) from Year 4 RC Phase 2 drilling at Madina Bafé
Hole ID | Azimuth (°) | Inclination (°) | From (m) | To (m) | Au (ppm) | Au Interval* |
MBRC21-193 to MBRC21-195 | 130 | -53 | No significant intersections | |||
MBRC21-196 | 130 | -53 | 9.00 | 14.00 | 0.56 | 5.00m @ 0.56 g/t |
including |
|
| 10.00 | 11.00 | 1.34 | 1.00m @ 1.34 g/t |
MBRC21-197 | 130 | -53 | 40.00 | 42.00 | 9.36 | 2.00m @ 9.36 g/t |
including |
|
| 40.00 | 41.00 | 1.00 | 1.00m @ 17.70 g/t |
and |
|
| 45.00 | 46.00 | 0.42 | 1.00m @ 0.42 g/t |
and |
|
| 69.00 | 70.00 | 0.39 | 1.00m @ 0.39 g/t |
MBRC21-198 | 130 | -53 | 54.00 | 55.00 | 0.51 | 1.00m @ 0.51 g/t |
MBRC21-199 | 130 | -53 | No significant intersections | |||
MBRC21-200 | 130 | -53 | No significant intersections | |||
MBRC21-201 | 130 | -53 | 5.00 | 6.00 | 0.78 | 1.00m @ 0.78 g/t |
MBRC21-202 | 130 | -53 | No significant intersections | |||
MBRC21-203 | 130 | -53 | 0.00 | 4.00 | 0.98 | 4.00m @ 0.98 g/t |
including |
|
| 2.00 | 3.00 | 1.96 | 1.00m @ 1.96 g/t |
MBRC21-204 to MBRC21-217 | 130 | -53 | No significant intersections | |||
MBRC21-218 | 130 | -53 | 55.00 | 56.00 | 1.68 | 1.00m @ 1.68 g/t |
MBRC21-219 | 130 | -53 | No significant intersections | |||
MBRC21-220 | 130 | -53 | 51.00 | 52.00 | 0.77 | 1.00m @ 0.77 g/t |
MBRC21-221 | 130 | -53 | No significant intersections | |||
MBRC21-222 | 130 | -53 | 33.00 | 38.00 | 0.40 | 5.00m @ 0.40 g/t |
and |
|
| 41.00 | 42.00 | 0.58 | 1.00m @ 0.58 g/t |
and |
|
| 45.00 | 46.00 | 0.33 | 1.00m @ 0.33 g/t |
MBRC21-223 | 130 | -53 | 26.00 | 27.00 | 0.65 | 1.00m @ 0.65 g/t |
MBRC21-224 | 130 | -53 | No significant intersections | |||
MBRC21-225 | 130 | -53 | 7.00 | 8.00 | 0.34 | 1.00m @ 0.34 g/t |
and |
|
| 11.00 | 12.00 | 0.32 | 1.00m @ 0.32 g/t |
and |
|
| 20.00 | 22.00 | 0.39 | 2.00m @ 0.39 g/t |
MBRC21-226 | 130 | -53 | No significant intersections | |||
MBRC21-227 | 130 | -53 | 18.00 | 19.00 | 0.38 | 1.00m @ 0.38 g/t |
MBRC21-228 to MBRC21-238 | 130 | -53 | No significant intersections | |||
MBRC21-239 | 130 | -53 | 35.00 | 36.00 | 0.90 | 1.00m @ 0.90 g/t |
and |
|
| 39.00 | 40.00 | 1.11 | 1.00m @ 1.11 g/t |
MBRC21-240 | 130 | -53 | No significant intersections | |||
* Intervals greater than 1m wide, calculated using a 0.3 g/t Au cut-off and no more than 5m consecutive (50% total) internal dilution. True widths are approximately 80% of the reported downhole interval.
Analysis of the QAQC has confirmed that all standards and blanks have reported within acceptable limits. There is a lack of repeatability between duplicate samples which is not necessarily unusual in gold deposits due to nugget effects.
IAMGOLD anticipates restarting the Phase 2 RC programme at Madina Bafé, for the remaining c.2,000m, in Q4 2021.
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. 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.
** ENDS **
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (withdrawal) Act 2018. 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: +44 (0)20 7830 9650 |
Blytheweigh (IR/PR contact) Tim Blythe / Megan Ray / Rachael Brooks
| Tel: +44 (0)20 7138 3204 |
Grant Thornton UK LLP Samantha Harrison / George Grainger
| Tel: +44 (0)20 7383 5100 |
Shard Capital Partners LLP Damon Heath / Erik Woolgar / Isabella Pierre
| Tel: +44 (0)20 186 9900 |
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.