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UPDATE - Stratex International: Dalafin drill results continue to impress

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Stratex International (LON:STI) reported further positive results from the Dalafin project in West Africa, which have extended the strike of gold to at least 500 metres in length.

The findings in Senegal have also prompted the possibility that there is more than one mineralised system at the property, the mining firm said.

The latest results are from the  Faré South prospect and include 10 metres (m) at 4.31 g/t gold, including 1m at 16.29 g/t gold.

Stratex chief executive Bob Foster told investors: "The latest results from Faré South continue to reinforce the project's potential, extending the strike-length of gold mineralisation to at least 500m."

He said hole FADD-16 hit a number of well-mineralised but relatively narrow zones between 110 m and 190 m vertically below the surface but not associated with porphyry bodies. 

"It is possible that we are dealing with more than one mineralised system here and we have now commissioned an IP survey to assist us in directing the next phase of the drilling programme," he said.

"At the southern end of Faré South the long intersection returned by FADD-23 indicates that the mineralised corridor extends a further 100 metres to the south-west of the prospect's previously known limits."

Foster added: "Drilling is nearing completion on key targets in the Madina Bafé area and we hope to provide an update within the next two months."

Dalafin lies in the centre of the Birimian-age Kédougou-Kenieba gold belt that extends from eastern Senegal into western Mali and has already seen multiple major gold discoveries including Randgold Resources' (LON:RRS) 3mln ounce Massawa deposit.

House broker Northland rates the shares a 'buy', saying it continues to believe Stratex is "significantly undervalued".

It highlights that the area of known gold mineralisation at Faré South has now been increased by 100m to 500m and remains open along strike with the potential to increase to 600m with further drilling.

"The Dalafin project has a number of other exciting prospects and with result from drilling at the Madina Bafé prospect expected shortly, we continue to believe that Stratex is significantly undervalued," said Dr Ryan Long.

His target price for the shares is 10.9p - significantly more than where they are now - at 3.05p.

Quick facts: Oriole Resources PLC

Price: 1.175 GBX

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Market Cap: £17.17 m
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