REG - Oriole Resources PLC - Senala Gold Project Exploration Target Update

Oriole ResourcesAnnouncement

19/06/2025 07:00

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RNS Number : 4713N  Oriole Resources PLC  19 June 2025

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.

 

Oriole Resources PLC

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

 

Exploration Target Update for the Senala Gold Project, Senegal

Oriole Resources (AIM: ORR), the AIM quoted gold exploration company focused
on West and Central Africa, is pleased to provide an updated JORC Exploration
Target for the Faré prospect within the 354.50km(2) Senala orogenic gold
project ('Senala' or the 'Project') in the KKI region of eastern Senegal.

 

Highlights

 

·    An updated JORC Exploration Target* range of 17 to 24 million tonnes
at a grade of 0.69 to 0.84g/t Au for 380,000oz to 650,000oz contained Au has
been estimated for all targets within the Faré prospects, incorporating all
drilling completed by AGEM during its earn-in.  The Exploration Target lies
outside of, and is complimentary to, the 2021 Mineral Resource Estimate ('MRE'
or 'Resource') envelope for Faré South.

 

·    A joint venture agreement is currently being finalised with AGEM to
manage further exploration at the Project, with the associated work programme
focused on mineral resource definition activities.

 

Background

 

·    In 2018, the Company signed an option agreement with AGEM Senegal
Exploration Suarl ('AGEM'), formerly owned by IAMGOLD Corp, but now a wholly
owned subsidiary of Managem Group ('Managem'), to fund advanced exploration at
Senala (the 'Option Agreement').

 

·    In 2021, the Company published a maiden JORC-compliant MRE for the
Faré prospect of 155,000oz contained Au grading 1.26g/t Au in the Inferred
category, based on a 0.30g/t Au cut off and within a US$1,800/oz pit shell.
 The MRE was prepared using drilling data collected by the Company prior to
the Option Agreement being signed and remains current at that gold price.
Revision of the MRE for gold price would require a site visit by Forge.

 

·    Work completed by AGEM since signing the Option Agreement has
included 4,854m of reverse circulation ('RC') drilling and 2,148m diamond
('DD') drilling.  This drilling delivered multiple new intersections,
including 11.00m grading 1.22g/t Au at the Faré North target and 35.00m
grading 3.61g/t Au, including 18.00m grading 6.46g/t Au, from Faré Far South
target.

 

·    Oriole's 34.85% interest in Senala is held via its 85% interest in
Stratex-EMC SA ('Stratex-EMC'), the holding vehicle for the Senala licence.

 

Commenting, Chief Executive Officer of Oriole Resources, Martin Rosser, said:
"Senegal is a richly endowed gold mining country and the updated Exploration
Target for the Senala gold project gives positive encouragement that it has
considerable upside potential to host a significant sized gold deposit.  The
Project is well located to already delineated large gold deposits in Senegal,
as well as in western Mali.  We look forward to finalising the joint venture
agreement with our partners Managem and determining that potential to the
full."

 

Figure 1. Oblique 3D view of the Exploration Target for the Faré prospect, in
relation to the current MRE.

 

Further Details

 

Senala, with a licence area of 354.50km(2), is an orogenic gold project
located in south-eastern Senegal, in the centre of the Birimian-age
Kédougou-Kéniéba Inlier ('KKI') that extends from eastern Senegal into
western Mali.  The KKI has a significant gold endowment and has already seen
multiple major gold discoveries including Endeavour's Sabodala-Massawa project
(5.2Moz Au) in Senegal, and Barrick's Loulo-Gounkoto project (15Moz Au) in
Mali.  To date, four main geochemical targets, namely Faré, Baytilaye,
Konkonou, and Madina Bafé, have been confirmed by drilling on the Senala
licence (Figure 2).

 

Figure 2. Map showing new licence blocks, in the context of the geochemical
anomalies defined to date.  The main exploration prospects are shown in red
outline.

In March 2018, the Company's 85%-owned subsidiary, Stratex-EMC, signed an
Option Agreement with AGEM, formerly a wholly owned subsidiary of IAMGOLD but
now owned by Managem, whereby AGEM could earn up to a 70% interest in the
Project by spending up to US$8 million on exploration over six years.

In 2021, the Company reported a maiden JORC-compliant MRE for Faré South of
155,000oz contained gold grading 1.26g/t Au in the Inferred category, based on
a 0.30g/t Au cut off and within a US$1,800/oz pit shell.  This Resource sits
within a larger JORC-compliant Exploration Target estimate for Faré South of
up to 280,000oz contained gold grading 1.10 g/t Au.  The Resource and
Exploration Target were compiled for Oriole by an independent consultant,
Forge International Limited, and were prepared using drilling data collected
by the Company prior to the Option Agreement being signed.

At the end of February 2022, AGEM had completed the First Option under the
Option Agreement by spending US$4 million over four years to earn an initial
51% interest in Senala.  The expenditure during that period was focused on
the Faré prospect (comprising the Faré North, Faré South and Faré Far
South targets) and the Madina Bafé prospect, and included 4,854m RC and
2,148m DD drilling.  This drilling delivered multiple new intersections,
including 11.00m grading 1.22g/t Au at the Faré North target and 35.00m
grading 3.61g/t Au, including 18.00m grading 6.46g/t Au, and 5.00m grading
12.45g/t Au, including 2.00m grading 26.61g/t Au, from Faré Far South
target.  All significant intersections (using a 0.30g/t Au cut-off) for the
Project can be found in the Senala JORC Table 1 disclosure on the following
page of the Company's website https://orioleresources.com/projects/senala/
(https://orioleresources.com/projects/senala/) .

During 2022, AGEM commenced exploration under the Second Option period of the
Option Agreement, with the right to earn up to a further 19% (total 70%)
interest in the Project by spending an additional US$4 million on exploration
before the end of February 2024.  During this period, AGEM completed a
10,695m auger drilling programme at Faré that continued to highlight the
extent and prospectivity of the Prospect.

The Company today reports that its independent consultant, Forge, has
integrated the exploration results acquired under the Option Agreement to
deliver an updated JORC Exploration Target* range of 17 to 24 million tonnes
at 0.69 to 0.84g/t Au for 380,000oz to 650,000oz contained Au covering all
target areas at Faré (Table 1).

 

Table 1. Exploration Target* for the Faré prospect, Senala

 

 Tonnage Range            Grade Range (g/t Au)   Total Contained Gold Range (oz Au)
 17,000,000 - 24,000,000  0.69 - 0.84            380,000 - 650,000

 

*The potential quality and grade of the Exploration Target are conceptual in
nature.  There has been insufficient exploration to estimate a Mineral
Resource, and there is no certainty that further exploration work will result
in the determination of a Mineral Resource.

 

 

Notes:

·      The Exploration Target represents an estimate of the exploration
potential within the Faré area of the Senala Project.

·      The target has been delineated based on a dataset comprising 35
diamond drill holes and 139 reverse circulation (RC) drill holes, totalling
18,643.75m of drilling.

·      The Exploration Target was generated by constructing
three-dimensional wireframe models representing interpreted mineralised
bodies.  These wireframes were extrapolated up to 200m along strike,
consistent with observed mineralised trends, and extended to a vertical depth
of 180m below current topography.

·      Oxidation modelling was not incorporated into this phase of work.
 As such, the impact of oxidation on grade distribution remains a source of
uncertainty.

·      A cut-off grade of 0.30g/t Au was applied to define mineralised
blocks considered within the target.  The grade range has been determined by
applying a ±10% variation around the calculated mean grade above the selected
cut-off.

·      Tonnage estimates are derived from the modelled wireframes to a
maximum depth of 180m below surface.  The lower boundary of the tonnage range
has been conservatively stated as 70% of the volume represented by the
modelled wireframes.

·      A mean bulk density of 2.1 tonnes per cubic metre (t/m³) has
been applied within the mineralised domains.

·      All figures are rounded to reflect the inherent uncertainty and
relative accuracy of the estimate.

·      The potential quantity and grade of the Exploration Target is
conceptual in nature.  There has been insufficient exploration to define a
Mineral Resource across all target areas, and it remains uncertain whether
further work will result in the Exploration Target being converted to a
Mineral Resource.  Infill drilling is recommended to advance the
understanding of mineralisation continuity and grade distribution.

·      The defined Exploration Target lies outside the current Mineral
Resource envelope for the Faré South area of the Senala Project.

·      The Exploration Target estimate has been prepared by Mr Robert
Davies, EurGeol, CGeol, who is a Competent Person as defined by the JORC Code.

 

The expanded Exploration Target provides further support for the existence of
additional Resource potential outside of the existing open pit-constrained MRE
(Table 2).  The MRE itself remains current at a gold price of US1,800/oz.
More than two thirds of this Resource has been defined within oxide material,
which supports the case for low-cost extraction should the Resource undergo
future development.  Both estimates remain open at depth and along strike.

 

Table 2. Resource tabulation for Faré South using a 0.30g/t Au cut off and
within a US$1,800/oz gold open pit shell

 

 Material  Classification  Tonnage    Grade      Total contained gold (oz)  Total contained gold (oz)

                                      (g/t Au)   Gross                      Net Attributable (34.85%)
 Oxide     Inferred        2,610,000  1.26       105,000                    37,638
 Fresh     Inferred        1,240,000  1.27       50,000                     17,425
 Total     Inferred        3,850,000  1.26       155,000                    54,018

 

Notes:

·      The Operator of the Senala Project is Managem.

·      The Resource Estimate is shown on a gross (100%) basis of the
Faré South target within the Senala Project. Oriole currently holds an
34.85% net attributable interest through the licence holding company,
Stratex-EMC.  The Company's joint venture partner, EMC S.A., holds the
remaining 15% interest.

·      To define the blocks with reasonable prospects of economic
extraction, the Inferred Mineral Resource Estimate is reported above a cut-off
grade of 0.30g/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 per oz, with the application of reasonable mining
parameters.

·      All figures are rounded to reflect the relative accuracy of the
estimate.

·      Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability.  It is uncertain if further exploration will
convert Inferred Mineral Resources to higher confidence categories.

·      The Resource estimate has an effective date of 13 August 2021.

·      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).

 

At a higher gold price, the cut-off grade of the Resource could be reduced to
0.20g/t Au or even 0.10g/t Au which would in turn increase the tonnage and
total contained gold, albeit reducing the average gold grade slightly.
 Further information on the grade tonnage sensitivity for the Resource is
shown in Table 3.  Revision of the MRE for gold price would require a site
visit by Forge.

 

Table 3. Grade tonnage sensitivity for Faré South resource at 0.1 g/t Au
intervals

 

 Cut-off Grade (g/t Au)  Tonnage    Grade (g/t Au)  Total Contained Gold (oz)
 0.1                     4,500,000  1.17            170,000
 0.2                     4,200,000  1.21            160,000
 0.3                     3,850,000  1.26            155,000
 0.4                     3,500,000  1.32            150,000
 0.5                     3,110,000  1.40            140,000
 0.6                     2,720,000  1.48            130,000

 

A joint venture agreement is currently being drafted with AGEM to manage
further exploration at the Project, with the associated work programme focused
on mineral resource definition activities.

 

Competent Persons Statement

 

The technical information in this release that relates to Exploration Results
and the planned exploration programme has been compiled by Mrs Claire Bay
(Executive Director).  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.

 

Enquiries:

 Oriole Resources Plc                                  Tel: +44 (0)23 8065 1649
 Martin Rosser / Bob Smeeton / Claire Bay

 Strand Hanson Limited (Nomad & Broker)                Tel: +44 (0)20 7409 3494
 Christopher Raggett / James Spinney / Edward Foulkes

 IFC Advisory Ltd (Financial IR & PR)                  Tel: +44 (0)20 3934 6630
 Tim Metcalfe / Graham Herring / Florence Staton       oriole@investor-focus.co.uk

 

Glossary and Abbreviations

 Au                                   Gold
 Diamond ('DD') drilling              A precision drilling method using a rotary drill with a diamond-tipped bit to
                                      create clean, accurate holes in hard materials
 Forge                                Forge International Limited
 g/t                                  Grammes per tonne
 JORC                                 Joint Ore Reserves Committee
 JORC Code                            2012 Edition of the Australasian Code for Reporting of Exploration Results,
                                      Mineral Resources and Ore Reserves
 KKI                                  Kédougou-Kéniéba Inlier. A Paleoproterozoic geological formation in eastern
                                      Senegal and western Mali, known for its gold deposits and distinctive
                                      geological characteristics.
 km                                   Kilometre
 km(2)                                Square kilometre
 Senala                               Senala orogenic gold project
 m                                    Metres
 M                                    Million
 MRE                                  Mineral Resource Estimate
 Option Agreement                     The Option Agreement signed between Stratex International PLC and AGEM Senegal
                                      Exploration Suarl in 2018
 Oriole Resources or the Company      Oriole Resources PLC
 oz                                   Troy ounce of gold
 Project                              Senala orogenic gold project
 Reverse circulation ('RC') drilling  A drilling method where drill cuttings are brought to the surface inside the
                                      drill rods via compressed air

 

Notes to Editors

 

Oriole Resources PLC is an AIM-quoted gold exploration company, with projects
in West and Central Africa.  It is focused on early-stage exploration in
Cameroon, where the Company has reported a Resource of 460,000oz contained
gold at 2.06g/t Au in the JORC Indicated and Inferred categories at its 90%
owned Bibemi project and has identified multi-kilometre gold and lithium
anomalies within the district scale Central Licence Package project.  BCM
International is currently earning up to a 50% interest in the Bibemi and Mbe
projects in return for a combined investment of US$1.5 million in signature
payments, up to US$8 million in exploration expenditure, as well as JORC
resource-based success payments.

 

At the Senala gold project in Senegal, AGEM Senegal Exploration Suarl
('AGEM'), a wholly owned subsidiary of Managem Group, has completed a six-year
earn-in to acquire an approximate 59% beneficial interest in the Senala
Exploration Licence by spending US$5.8 million.  Discussions on the formation
of a joint venture company are currently underway.  The Company also has
several interests and royalties in companies operating in East Africa and
Turkey that could give future cash payments.

 

For further information please visit www.orioleresources.com
(http://www.orioleresources.com) ,  @OrioleResources on X

 

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