REG - Oriole Resources PLC - Senala Exploration Update

Oriole ResourcesAnnouncement

29/09/2022 07:00

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RNS Number : 0813B  Oriole Resources PLC  29 September 2022

 Oriole Resources PLC

('Oriole Resources' or 'the Company' or 'the Group')

 

Senala Exploration Update

 

Oriole Resources (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') is in the penultimate year of a six-year Option
Agreement to spend up to US$8 million in return for a 70% interest in the
Project (announcement dated 1 March 2018
(https://polaris.brighterir.com/public/oriole_resources/news/regulatory_news/story/xlmmm3r)
).

 

 

Highlights

·    Formalisation of IAMGOLD's 51% interest in Senala is currently
underway, following confirmation of the first US$4 million expenditure
commitment on the Project ('First Option') having been met in Q1-2022;

·    Earlier this year, IAMGOLD commenced its Second Option to spend a
further US$4 million by 28 February 2024 and, as part of that commitment, it
has recently completed a 10,695 metre ('m') auger drilling programme, in 1,307
holes, at the Faré prospect;

·    Gold assays for 2,551 samples have identified multiple structurally
controlled gold anomalies outside of the previously identified footprint at
Faré:

o  The majority of these newly identified anomalies follow the same
north-easterly trend as the existing Faré North, Faré South and Faré Far
South mineralisation.

o  The longest of these, a c.1.3 kilometre ('km') anomaly to the north-east
of Faré North, is associated with a significant, >2km-long, arsenic
anomaly;

·    Further details on the next work programme at the Project are
awaited. All anomalous trends will be reviewed and prioritised for further
work as merited;

·    IAMGOLD's total investment in the Project currently stands at
approximately US$6.50 million.

 

 

Tim Livesey, CEO of Oriole, commented: "It's great to see expansion of the
gold anomalism in the vicinity of the Faré prospect, as the recent round of
auger drilling shows. The auger samples were all taken within a few metres of
surface, effectively testing below the iron-cemented cover rocks, to provide
insight into the potential location of further gold mineralisation at depth.
 

"With several targets to follow up on, these results again indicate the
potential for the Faré area to host a stand-alone resource.

"This portion of the Senala licence continues to show robust value add, with
capacity to easily expand the existing maiden resource by a programme of
infill drilling on the existing Faré North, Faré South and Faré Far South
targets."

2022 auger drilling results (for gold and arsenic) at the Faré prospect

 

Further Details

In Q1 2022, IAMGOLD exercised its First Option to earn an initial 51% interest
in Senala by incurring exploration expenditure in excess of US$4 million
within the first four years of the 2018 Option Agreement (announcements dated
21 February 2022
(https://polaris.brighterir.com/public/oriole_resources/news/regulatory_news/story/xo71g9r)
and 18 May 2022
(https://polaris.brighterir.com/public/oriole_resources/news/regulatory_news/story/wknz8yw)
). Formalisation of that interest is currently underway.

 

In May, IAMGOLD commenced its Year 5 exploration programme at the Project and
has recently completed a 10,695m auger drilling programme (in 1,307 holes) at
the Faré prospect, where the Company has previously reported best drill
intersections including 70.00m grading 1.46 grammes per tonne ('g/t') gold
('Au') and 35.00m grading 3.61 g/t Au (announcements dated 16 and 18 August
2021). The programme was predominantly focussed on testing the strike
(southwest and northeast) and eastward extension of the main c. 6km-long
structure at Faré.

 

Holes were drilled to an average depth of eight metres, with up to three
samples collected per hole to assess the underlying geology and identify
potential extensional gold anomalism. Gold assays for 2,551 samples have
identified several 0.4-1.3km-long, structurally controlled gold anomalies
(using a cut-off grade of 10 parts per billion ('ppb') Au) outside of, and
mostly parallel or sub-parallel to, the previously-identified geochemical
footprint at Faré. The longest anomaly, located c.3km to the north-east of
Faré North, has defined a northeast-southwest trend subparallel to the main
Faré South target that is host to a maiden JORC-calculated Mineral Resource
Estimate ('MRE') and Exploration Target (announcement dated 23 August 2021
(https://polaris.brighterir.com/public/oriole_resources/news/regulatory_news/story/w1nl33x)
). This c.1.3km-long anomaly shows a good correlation with a significant (at
least 2km-long) arsenic anomaly and IAMGOLD is currently undertaking further
analysis to better understand the relationship between the multi-elements
data, gold anomalies, lithology and structures. The highest-grading sample,
located c.1.5km east-northeast of the Faré South MRE, yielded 80 ppb Au and
appears to be related to the same structural corridor that passes through the
main conceptual pit shell for the MRE, and also continues eastward into
neighbouring licences. The associated QAQC for this programme has not been
reviewed by Oriole. All anomalies will be reviewed and prioritised for further
work as merited.

 

To date, IAMGOLD has spent approximately US$6.5 million at Senala and is
required to spend a further US$1.5 million on exploration by 28 February 2024
in order to earn a total 70% interest in the Project. Further details on the
planned follow-up programmes at the Project are awaited.

 

Auger drilling in relation to the Kédougou-Kéniéba Inlier and the
surrounding projects

 

** ENDS **

Competent Persons Statement

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.

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

 Shard Capital Partners LLP                               Tel: +44 (0)20 7186 9900

 Damon Heath / Erik Woolgar / Isabella Pierre

 

Notes to Editors:

 

Oriole Resources PLC is an AIM-listed exploration company, operating in West
Africa. It is focused on early-stage exploration in Cameroon (Bibemi,
Wapouzé and Central Licence Package 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. Under the terms of the Option Agreement,
IAMGOLD has recently met its first commitment by spending US$4
million within an initial four year period and will shortly acquire a 51%
interest in Senala. The Company also has several interests and royalties in
companies operating throughout Africa and Turkey that could deliver future
cash flow.

 

 

 

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