REG - Oriole Resources PLC - Maiden JORC Resource for Bibemi Gold Project
12/12/2022 07:00
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RNS Number : 2970J Oriole Resources PLC 12 December 2022
Oriole Resources PLC
('Oriole Resources' or 'the Company' or 'the Group')
Maiden JORC Resource for Bibemi Gold Project in Cameroon
305,000 oz grading 2.19 g/t gold Inferred
Oriole Resources PLC, the AIM-quoted gold exploration company focussed on West
Africa, is pleased to report a maiden Inferred JORC-compliant Mineral Resource
Estimate ('MRE' or the 'Resource') of 305,000 Troy ounces ('oz') grading 2.19
grammes per tonne ('g/t') gold ('Au') for Bakassi Zone 1, one of four
prospects at its 90%-owned Bibemi orogenic gold project ('Bibemi' or the
'Project') in Cameroon.
Highlights
· A pit optimisation study has been completed to upgrade a portion of
the previously-reported JORC Exploration Target for the Bakassi Zone 1
prospect (announcement dated 10 October 2022) to a maiden JORC Resource;
· The pit-constrained Resource is estimated to be 4.3 million tonnes
grading 2.19 g/t Au for approximately 305,000 oz Au in the JORC Inferred
Resources category;
· The entire Resource has been defined within the limit of
a US$1,800/oz gold price pit shell;
· The Resource has been modelled over a strike length of 1,220 metres
('m') and to a depth of 260m below surface, using a cut-off grade of 0.30 g/t
Au and a top-cut of 20 g/t Au;
· The residual JORC Exploration Target, not including the Resource
blocks, is estimated to be between 1.5 and 2.2 million tonnes at grades
ranging from 1.10 to 2.10 g/t for between an additional 53,000 and 148,000 oz
of Au([ 1 ]);
· Both estimates remain open at depth and along strike to the
northeast;
· The Resource and updated Exploration Target have been compiled for
Oriole by independent consultant Forge International Limited ('Forge'), who
has recently completed a site visit to Bibemi in accordance with JORC
guidelines;
· There exists significant potential to expand the MRE at Bakassi Zone 1
and to identify additional resources at the other three prospects on the
licence, Bakassi Zone 2, Lawa West and Lawa East, which are all located within
a few kilometres ('km') of Bakassi Zone 1;
· An infill geophysics programme is planned for H1-2023, to aid drill
targeting at the remaining three prospects on the Bibemi licence as well as
future Resource-expansion activities.
Figure 1 3D Isometric view of the Resource
blocks within U$1,800/oz pit shell
Figure 2 Cross section (looking northeast)
through the core zone (fence line BZ1_P2_L3) of the Exploration Target model
for Bakassi Zone 1, showing drill holes and mineralised domains.
Figure 3 Plan view showing the block model
with U$1800/oz Resource pit shell, and drill holes used to estimate the
Bakassi Zone 1
Oriole CEO, Tim Livesey, said: "An excellent early result from the past
season's drilling at the Bakassi Zone 1 prospect on our Bibemi licence in
Cameroon, which we believe is the first ever JORC MRE for orogenic gold in
Cameroon.
"We are very pleased to have delivered an initial JORC MRE of significant size
in a cost-effective manner and within such a short timeframe, despite the
impacts of the covid pandemic.
"This was the first drilling ever carried out at Bibemi and it clearly
demonstrates the massive opportunity that exists in this underexplored region.
"The Bakassi Zone 1 prospect is open at depth with the current Resource model
reaching down to 260m. It is also open along strike to the north-east and
there is additional potential within three kilometres of this initial pit
design at the Bakassi Zone 2, Lawa West and Lawa East prospects. Collectively
these prospects have the potential to deliver many more ounces.
"We are delighted that our early move into Cameroon continues to deliver
success, both here at Bibemi and in the expansive Central Licence Package. The
Oriole team identified the critical mineralising controls following the early
work of mapping and trenching. The first phases of prospect drilling and the
structural reviews of the oriented core drilling programme confirmed this, and
the information has been used to deliver the JORC MRE.
"With obvious similarities to the extensive gold-in-soils anomalism identified
in the last field season across our Central Licence Package, the Oriole team's
exploration success at Bibemi reconfirms our commitment to Cameroon as a new
frontier for gold exploration and mining.
"Cameroon has all the hallmarks of an underexplored mining district, with huge
opportunity for early movers such as Oriole Resources."
Further Details
At the Bibemi orogenic gold project in northern Cameroon (177km(2) in
area), the Company's exploration to date has identified shear-hosted gold
mineralisation at four main prospects - Bakassi Zone 1, Bakassi Zone
2, Lawa West and Lawa East - within a circa 12 km-long mineralised
hydrothermal system at surface. Since Q1-2021, the Company has completed four
phases of diamond drilling at the Project for a total of 6,685.40m in 54
holes. The majority of the drilling has been focussed on a circa 1 km section
at the southern end of Bakassi Zone 1 and has delivered best
intersections of 14.80m grading 4.27 g/t Au and 7.70m grading 2.74 g/t Au
(hole BBDD050), 6.50m grading 3.92 g/t Au (hole BBDD034), 5.20m grading 1.97
g/t Au (hole BBDD031), and 9.20m grading 1.31 g/t Au (hole
BBDD042) (announcements dated 20 December 2021
(https://polaris.brighterir.com/public/oriole_resources/news/regulatory_news/story/w3k32dr)
, 9 February 2022
(https://polaris.brighterir.com/public/oriole_resources/news/regulatory_news/story/r755m1w)
and 15 September 2022
(https://polaris.brighterir.com/public/oriole_resources/news/regulatory_news/story/rdn7q4w)
). The mineralised corridor at Bakassi Zone 1 has been confirmed up to 150m
wide and contains a package of steeply-dipping quartz-tourmaline veins as well
as extensional, sub-horizontal quartz veins.
Figure 4 Bibemi drill plan showing key prospects and collar locations
In October 2022, the Company reported a maiden JORC Exploration Target for
Bakassi Zone 1 of between six million tonnes and eight million tonnes at
grades ranging from 1.50 to 1.70 g/t Au for between 290,00 and 440,000 oz
Au.
The Company today reports that Forge, together with its associate Axe Valley
Mining Consultants Ltd, has completed a Competent Persons site visit and a pit
optimisation study to enable the conversion of a portion of that Exploration
Target into a maiden Resource of 305,000 oz Au grading 2.19 g/t Au in the
Inferred category, based on a 0.30 g/t Au cut off and within a US$1,800/oz
gold price pit shell (Table 1).
Table 1. Resource tabulation for Bakassi Zone 1 using a 0.30 g/t Au cut off
and within a US$1,800/oz pit shell
Gross Net Attributable (90%)
Material Classification Tonnage Grade Total contained gold (oz) Tonnage Grade Total contained gold (oz)
(g/t Au) (g/t Au)
Oxide Inferred 200,000 1.53 10,000 180,000 1.53 9,000
Fresh Inferred 4,100,000 2.23 294,000 3,690,000 2.23 265,000
Total Inferred 4,300,000 2.19 305,000 3,870,000 2.19 274,000
Notes:
· The Operator of the Bibemi Project is Oriole Resources PLC.
· The Resource Estimate is shown on a gross (100%) basis of the
Bakassi Zone 1 target within the Bibemi Project. Oriole currently holds a 90%
net attributable beneficial interest through the licence holding company,
Reservoir Minerals Cameroon SARL. The remaining 10% interest is held by
Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et
Géophysiques SARL ('BEIG3'), the Company's JV partner.
· All figures are rounded to reflect the relative accuracy of the
estimate. Differences may occur due to rounding.
· Mineral Resources are not Mineral Reserves and have not
demonstrated economic viability. It is uncertain if further exploration will
convert Inferred Mineral Resources to higher confidence categories.
· To define the blocks with reasonable prospects of economic
extraction, the Inferred Mineral Resource Estimate is reported above a cut-off
grade of 0.30 g/t and constrained within wireframe models representing the
mineralised bodies and within a Lerchs-Grossman optimised pit shell based on a
gold price of US$1,800 / oz, with the application of reasonable mining
parameters.
· The Resource estimate has an effective date of 7 December 2022.
· The Resource has been estimated by Mr. Robert Davies, EurGeol,
CGeol, a Competent Person as defined in the 2012 Edition of the 'Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'
(The JORC code).
Figure 5 Plan view showing Resource pit
shell and blocks representing the Exploration Target
Figure 6 Long section (looking southeast)
showing Exploration Target blocks and pit constrained Inferred Resource blocks
This maiden Inferred Resource has been estimated using 28 diamond holes for a
total of 3,840m. The Resource estimate is not sensitive to cut-off grade, as
can be seen in the grade tonnage sensitivity shown in Table 2.
Table 2. Grade tonnage sensitivity for Bakassi Zone 1 resource at 0.10 g/t Au
intervals
Cut-off Grade (g/t Au) Tonnage Grade (g/t Au) Total Contained Gold (oz)
0.1 4,700,000 2.05 307,000
0.2 4,400,000 2.14 306,000
0.3 4,300,000 2.19 305,000
0.4 4,200,000 2.23 304,000
0.5 4,100,000 2.37 303,000
0.6 4,000,000 2.35 299,000
The residual JORC Exploration Target, that is the portion of the original
Exploration Target that could not be upgraded to an Inferred Resource based on
current information, is estimated to be between 1.5 and 2.2 million tonnes at
grades ranging from 1.10 to 2.10 g/t for between 53,000 and 148,000 oz of Au
(Table 3). The residual Exploration Target is along strike of the Resource in
areas of the deposit where there is insufficient sample support to be
Classified as Inferred Resource. With infill drilling it is hoped that the
size and confidence level of the existing Resource will be increased to
incorporate some of the additional ounces.
The JORC Exploration Target comprises 3D wireframe volumes based on geological
mapping, available drilling data and cross-section interpretations. A density
of 2.85 tonnes per metre cubed ('t/m(3)'), which represents the mean density
of the 150 density records that are contained within the mineralisation
wireframe models, has been used for the Exploration Target calculations.
Table 3. Exploration Target for Bakassi Zone 1 (in addition to the Inferred
Resource)
Tonnage Range Grade Range (g/t Au) Total Contained Metal Range
(oz Au)
1,500,000 - 2,200,000 1.10-2.10 53,000 - 148,000
Notes:
· The Exploration Target is an estimate of the exploration
potential of the Bakassi Zone 1 mineral deposit.
· The Exploration Target has been generated using 28 diamond holes
totalling 3,840m of drilling. The Exploration Target has been prepared by
wireframe modelling of mineralised bodies, using a 0.1 g/t cut-off and
following the geological and structural interpretation for the deposit. The
estimate has been limited to a depth of 200m below the current topography. The
grade is presented as a range of approximately 20% above and 20% below the
actual grade estimated using an inverse distance weighting interpolation,
applying a cut-off of 0.3 g/t gold. A density of 2.85t/m(3) has been used
throughout. All figures are rounded to reflect the relative accuracy of the
estimate.
· The Exploration Target estimate covers a strike length of
approximately 1,200m. Drill holes have been completed at a spacing of between
35m and 115m on fence lines that are mostly between 90m and 130m apart. All of
the data has been used to create wireframe models and a block model.
· The potential quantity and grade of the Exploration Target is
conceptual in nature.
· There has been insufficient exploration to estimate a Mineral
Resource for all target areas reported. It is proposed that such areas are
tested with infill Diamond and/or Reverse Circulation drilling although it is
uncertain at this stage whether further exploration will result in the
estimation of a Mineral Resource.
· The Exploration Target has been estimated by Mr. Robert Davies,
EurGeol, CGeol., a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves' (The JORC code).
As previously reported, the Company anticipates completing an infill
geophysics (magnetic) survey during the first half of 2023 to help the team
develop its Resource-expansion activities.
For further information on the Bibemi project, including a JORC Table 1,
please see the following page of the Company's website
https://orioleresources.com/projects/bibemi/
(https://orioleresources.com/projects/bibemi/) .
Competent Persons Statement
The information in this announcement that relates to the Mineral Resources and
Exploration Targets is based on data compiled by Mr. Robert Davies, EurGeol,
CGeol, an independent consultant to Oriole. Mr Davies is a Director
of Forge International Limited. Mr Davies has sufficient experience that is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the "Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves". Mr
Davies consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
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.
Glossary
Term Intended generalised meaning
Competent Person A minerals industry professional who is a Member or Fellow of the Australasian
Institute of Mining and Metallurgy, or of the Australian Institute of
Geoscientists, or of a Recognised Professional Organisation, as included in a
list available on the JORC and Australian Securities Exchange websites.
Cut-off grade The lowest grade, or quality, of mineralised material that qualifies as
economically mineable and available in a given deposit. It is therefore the
grade above or below which the Mineral Resource or Ore Reserve is economic.
Diamond drilling Drilling method which obtains a cylindrical core of rock by drilling with an
annular bit impregnated with diamonds.
Exploration Target A statement or estimate of the exploration potential of a mineral deposit in a
defined geological setting where the statement or estimate, quoted as a range
of tonnes and a range of grade (or quality) relates to mineralisation for
which there has been insufficient exploration to estimate a Mineral Resource.
Feasibility Study A comprehensive technical and economic study of the selected development
option for a mineral project, which includes appropriately detailed
assessments of the applicable Modifying Factors together with any other
relevant operational factors and detailed financial analysis which are
necessary to demonstrate at the time of reporting that extraction is
reasonably justified (economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent or financial
institution to proceed with, or finance, the development of the project. The
confidence level of the study will be higher than that of a Pre-Feasibility
Study.
Grade The measurement of the quantity, percentage or quality of a metal or mineral
contained within a mineral deposit.
g/t Grammes per tonne.
Inferred mineral resource that part of a Mineral Resource for which quantity and grade or quality are
estimated from limited geological evidence and sampling. Geological evidence
is sufficient to imply, but not verify, geological and grade continuity. It is
based on exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes. An Inferred Resource has a lower level of confidence
than that applying to an Indicated Mineral Resource and must not be converted
to an Ore Reserve. It is reasonably expected that most of an Inferred Mineral
Resource could be upgraded to an Indicated Mineral Resource with continued
exploration.
Indicated Mineral Resource An Indicated Mineral Resource is that part of a Mineral Resource for which
quantity, grade or quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of modifying
factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume geological and
grade/quality continuity between points where data and samples are gathered.
An Indicated Mineral Resource has a lower level of confidence than that
applying to a Measured Mineral Resource and may only be converted to a
Probable Ore Reserve.
Measured Mineral Resource That part of a Mineral Resource for which quantity, grade or quality,
densities, shape, and physical characteristics are estimated with confidence
sufficient to allow the application of Modifying Factors to support detailed
mine planning and final evaluation of the economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes, and is
sufficient to confirm geological and grade/quality continuity between points
where data and samples are gathered. A Measured Mineral Resource has a higher
level of confidence than that applying to either an Indicated Mineral Resource
or an Inferred Mineral Resource. It may be converted to a Proved Ore Reserve
or under certain circumstances to a Probable Ore Reserve.
Modifying Factors Modifying Factors are considerations used to convert Mineral Resources to Ore
Reserves. These include, but are not restricted to mining, processing,
metallurgical, infrastructure, economic, marketing, legal, environmental,
social and governmental factors.
Infill drilling Drilling designed to fill or close gaps between existing drill holes.
JORC Code The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves 2012 edition (JORC Code), is an internationally recognised
professional code of practice which sets minimum standards for the public
reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mineralisation Any single mineral or combination of minerals occurring in a mass, or deposit,
of economic interest. The term is intended to cover all forms in which
mineralisation might occur, whether by class of deposit, mode of occurrence,
genesis or composition.
Mineral Resource A concentration or occurrence of material of economic interest in or on the
Earth's crust in such form, grade, quality and quantity that there are
reasonable prospects for eventual economic extraction. The location, quantity,
grade, continuity and other geological characteristics of a Mineral Resource
are known, estimated or interpreted from specific geological evidence and
knowledge, including sampling. Mineral Resources are sub-divided in order of
increasing geological confidence into Inferred, Indicated and Measured
categories.
Ore Reserve The economically mineable part of a Measured or Indicated Mineral Resource. It
includes diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
Pre-Feasibility or Feasibility level, which Include the application of
Modifying Factors. Such studies demonstrate that, at the time of reporting,
extraction could reasonably be justified. The key underlying assumptions and
outcomes of the prefeasibility study or feasibility study must be disclosed at
the time of reporting of a new or materially changed Ore Reserve. Ore Reserves
are sub-divided in order of increasing confidence into Probable and Proved
classifications.
Ounce / oz Troy ounce (31.1035 grams).
Oxide A compound of sulphur with a metallic element.
ppm Parts per million, equivalent to g/t.
Reverse circulation (RC) drilling A percussion drilling technique where air is pumped down the outer part of the
drill rods and used to return drill chips to surface.
Shear zone A tabular zone in the Earth's crust along which movement has occurred and in
which the rocks have been crushed, stretched or flattened.
Strike The orientation of the long horizontal dimension of a planar or tabular
geological feature such as a bed, vein or fault.
Strike length The length of a geological feature, such as a vein, along the direction of its
strike.
Sulphide A compound of sulphur with a metallic element.
Tonnage (also volume) An expression of the amount of material of interest.
Trenching The removal of cover to allow mapping and sampling of the underlying rock.
Pit optimisation An exercise conducted to determine the most profitable open pit design, given
a mineral resource and a set of economic and metallurgical parameters. These
parameters typically consist of commodity prices, process recoveries and
operating costs.
Pre-Feasibility Study A comprehensive study of a range of options for the technical and economic
viability of a mineral project, which has advanced to a stage where a
preferred method, the case of underground mining, or the pit configuration, in
the case of an open pit, is established and an effective method of processing
is determined. It includes a financial analysis based on reasonable
assumptions on the Modifying Factors and the evaluation of any other relevant
factors, which are sufficient for a Competent Person, acting reasonably, to
determine if all or part of the Mineral Resources may be converted to an Ore
Reserve at the time of reporting. A Pre-Feasibility Study is at a lower
confidence level that a Feasibility Study.
Probable Ore Reserve The economically mineable part of an Indicated, and in some circumstances, a
Measured Mineral Resource. The confidence in the modifying factors applying to
a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve. A
Probable Ore Reserve has a lower level of confidence than a Proved Ore Reserve
but is of sufficient quality to serve as the basis for a decision on the
development of the deposit.
Proved Ore Reserve The economically mineable part of a Measured Mineral Resource. A Proved Ore
Reserve implies a high degree of confidence in the Modifying Factors. A Proved
Ore Reserve represents the highest confidence category of an Ore Reserve
estimate. The style of mineralisation or other factors could mean that Proved
Ore Reserves are not achievable in some deposits.
Vein A vein is a distinct sheetlike body of crystallised minerals within a rock.
** ENDS **
For further information please visit www.orioleresources.com
(http://www.orioleresources.com) , @OrioleResources on Twitter,
or contact:
Oriole Resources Plc Tel: +44 (0)20 7830 9650
Tim Livesey / Bob Smeeton / Claire Bay
BlytheRay (IR/PR Contact) Tel: +44 (0)20 7138 3204
Tim Blythe / Megan Ray / Rachael Brooks
Grant Thornton UK LLP Tel: +44 (0)20 7383 5100
Samantha Harrison / George Grainger / Ciara Donnelly
SP Angel Corporate Finance LLP Tel: +44 (0)20 3470 0470
Ewan Leggat / Harry Davies-Ball
Notes to Editors:
Oriole Resources PLC is an AIM-listed gold exploration company, operating
in West Africa. It is focussed on early-stage exploration
in Cameroon, where the Company has recently reported a maiden Resource of
305,000 oz Au in the JORC Inferred category at the Bibemi project and has
identified multi-kilometre gold and lithium anomalism within the
district-scale Central Licence Package project. At the more advanced Senala
gold project in Senegal, IAMGOLD is the operator and 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 in East Africa and Turkey that could deliver future cash flow.
.
1 See Table 3 within 'Further Details' section for more information on this
Exploration Target, including full disclosure notes
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