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UPDATE: Stratex finds more evidence of gold in Senegal

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Analysts met positively Stratex International's (LON:STI) announcement that it had found evidence of gold at another of its targets at the Dalafin licence in Senegal.

Final assays from latest drilling at the Medina Bafe target confirmed mineralisation, it said, with best drill intercepts ranging from 10 grams per tonne (g/t) gold over two metres (m) and 2.82 g/t over 8m and 0.8 g/t over 16m.

Stratex, which has a 75% stake in Dalafin, added the licence at Dalafin had also been extended for another three years.

Bob Foster, Stratex’s chief executive, told investors he was delighted with the Medina Bafe results, which was the last of the areas targeted by a large drilling programme completed earlier in 2013.

“In total, four out of the five target areas, identified from the results of detailed geochemical and geophysical surveys, have now yielded very encouraging intersections.

“Many of the zones are open along strike, as well as at depth, and these will be prioritized for further drilling that should commence within the next 2-3 months.

"Given the discovery of a considerable number of multimillion ounce gold deposits in this part of Africa, we are very excited."

In July, Stratex said the 33,000m reverse air blast (RAB) and air core (AC) drilling programme had confirmed a new discovery at Dalafin with intersections at the Faré, Baytilaye and Saroudia targets.

Investec described the news as an "encouraging" development, while Northland said these positive initial results along with the significant number of multi-million ounce gold deposits in the area gave the broker confidence that the company could continue its excellent exploration track record.

"Management’s decision to fast track the follow up drilling campaign also highlights the significance that company has placed on the area. At a time when many explorers are cutting exploration budgets, Stratex with its significant cash balance is continuing to deliver impressive exploration results."

The broker rates the stock a 'buy' with a target price of 12.8p.

Shares on Monday rose 4.76% to stand at 5.50p.

Quick facts: Oriole Resources PLC

Price: 0.52 GBX

LSE:ORR
Market: LSE
Market Cap: £3.65 m
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