Oklo Resources delivering results from gold assets with $5 million drill campaign
What does Oklo Resources do?
Oklo Resources Ltd (ASX:OKU) (FRA:JYA) specialises in gold exploration in Mali, West Africa. It is run by managing director and CEO Simon Taylor and country manager and executive director Dr Madani Diallo. The company's board has been chaired by Simon O’Loughlin since December 2018 after Michael Fotios retired from the post.
Country manager Diallo is a Mali Knight of National Order who has more than 30 years of experience in African exploration. He is vice-president of Mali Chamber of Mines, president of the Association of Geoscientists in Mali and a director of UBA bank in Burkina Faso.
Lawyer and accountant O’Loughlin serves on a number of boards and is the founding member of O’Loughlins Lawyers, where he continues to serve as a consultant. He has been involved with the resources industry for many years, raising capital, organising strategic alliances and taking companies through public listings.
What does Oklo Resources own?
The key assets are the flagship Dandoko Gold Project and its various prospects, such as Seko, and Kouroufing Gold Project, both in Mali.
The 134 square kilometre Dandoko project in west Mali is along the Senegal Mali Shear Zone (SMSZ) about 30 kilometres east of B2Gold Corp’s (TSE:BTO) 7.1 million ounce Fekola mine deposit in southwest Mali and 50 kilometres south-southeast of Barrick Gold Corp's (NYSE:GOLD) 12.5 million ounce Loulo mine deposit in western Mali.
Loulo mine, which Barrick picked up from Randgold Resources Ltd in the companies’ December 2018 merger, is one of two shear-hosted Birimian-style mesothermal gold deposits the larger company holds on the Loulo-Gounkoto complex in Mali, with the other being the 5.4 million ounce Gounkoto deposit.
Also along the shear zone are a number of smaller deposits, such as BCM Investments subsidiary Algom Resources’ 3.8 million ounce Tabakoto mine deposit and plant in southwest Mali, near the border with Senegal, and Iamgold Corp’s (NYSE:IAG) (TSE:IMG) 2.6 million ounce Boto Gold Project in eastern Senegal.
Line clearing has taken place this quarter at Dandoko to allow a multipurpose rig to access the site for follow-up aircore, RC and diamond drilling at Seko, Dabia, Sory and other targets along the project’s 12-kilometre gold corridor.
These are to follow RC intersections from Sory, 1.5 kilometres south of Seko, which included 44 metres grading 1.37 g/t gold from 33 metres and aircore intersections from Dabia, 1.5km north of Seko, such as 25 metres grading 2.5 g/t from 65 metres.
Oklo’s secondary asset is the 90.7 square kilometre Kouroufing project, on another northeast splay common to the area.
Kouroufing adjoins Dandoko, as does Oklo’s Moussala, Kandiole, Sari and Kossaya projects that are also within the Kenieba Inlier of western Mali.
Oklo now holds more than 500 square kilometres of ground and has 65% of the Kouroufing project, which it has been farming into a full stake since October 2018.
Kouroufing is an underexplored project where the company discovered a 6-kilometre long gold corridor with an auger drilling program in September 2018.
The best composite intersections at the time were 8 metres at 14.35 g/t gold from 5 metres, 5 metres at 2.18 g/t gold from 7 metres and 15 metres at 1.25 g/t gold from surface.
Oklo’s first aircore hits of a 1.5-kilometre portion of the corridor were unveiled in late January, with highlights of the shallow gold intersections being 40 metres at 1.02 g/t from surface, 34 metres at 1.12 g/t gold from 2 metres that ended in mineralisation; 34 metres at 1.06 g/t from surface, including 2 metres at 7.31 g/t from 24 metres; and 8 metres at 10.58 g/t from 2 metres, including 2 metres at 39.7 g/t from 6 metres.
Assays are pending from the secondary project after 5,084 metres of aircore drilling in 160 holes and 177 metres of diamond drilling in one hole at Kouroufing.
Auger drilling of 22,488 metres in 1,548 holes has taken place at the project, with assays pending from 1,324 holes.
Reverse circulation (RC) drilling is now underway at Kouroufing, with seven holes and 1,100 metres planned.
Auger drilling results are also expected from Sari and Kossaya projects, two more projects in Oklo’s portfolio of west and south Mali projects on highly-prospective Proterozoic Birimian greenstone belts.
The latest drilling campaign is expected to drill 69,000 metres over the 2018-19 season.
The company was well-funded with $12.6 million cash at the end of the December quarter of 2018.
Oklo’s March quarterly report is expected at the end of April 2019, with the company previously reporting it expected $3.9 million of cash outflows in the March quarter of 2019.
The budgeted March quarter exploration and evaluation spend was $3.5 million.
Aircore, auger and RC drilling results from Kouroufing project
Aircore, auger and RC drilling results from Dandoko project and its Seko, Dabia and Sory targets
Auger drilling results from Sari and Kossaya projects
Progression of the Kouroufing project farm-in
Project milestones, acquisitions and divestments
Strategic partnerships and mergers & acquisitions activity
Oklo managing director & CEO Simon Taylor highlights prime territory in Mali
“We started with Dandoko, two and three years ago, it’s in west Mali, east of the west Senegal Mali Shear,” Oklo managing director and CEO Simon Taylor told Proactive Investors two weeks ago.
“You’ve got Fekola to the west of us, which is B2Gold, you’ve got Barrick — it was Randgold — to the northwest of us; big deposits, very underexplored.
“We had instant success at Dandoko, with some fantastic numbers out of Seko, mainly in oxide at this stage, and we’re now looking for that high-grade primary source of the oxide there.
“In the last 18 months we’ve added to our portfolio … and we’ve got another exciting discovery we’ve made at Kouroufing which is east of Dandoko.”