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Oriole Resources upbeat on drilling results at northernmost Faré prospect of Senala project

Published: 08:09 11 Mar 2021 GMT

Oriole Resources PLC -

Oriole Resources PLC (LON:ORR) was upbeat on the results of an air core drilling programme at the northernmost Faré prospect of the Senala gold project in Senegal.

The AIM-listed company said the programme reported best gold values of 2.58 grammes per tonne (g/t), 0.64 g/t and 0.62 g/t, successfully supporting and enhancing the previous gold-in-soil anomalies defined by the company. The results confirm that the majority of the anomalism is in situ.

"We welcome the confirmation of the existing anomalism on the three sub-prospects, as initially identified by company's soil sampling programmes of 2012 and 2016," said chief executive Tim Livesey. "We have always believed that, based on the existing RC [reverse circulation] and diamond drilling undertaken in 2013 and 2014, the Faré prospect has the potential to host a resource which, subject to further exploration success, could form the basis of a stand-alone mining operation."

Oriole's joint venture partner on the project, IAMGOLD Corp (NYSE:IAG) has indicated its intention to proceed with a follow-up exploration programme comprising 5,000 metres of reverse circulation drilling and 1,000m of diamond drilling.

However, this proposal is subject to both companies addressing outstanding issues related to the work undertaken by IAMGOLD, which Oriole said had underspent on its Year 3 commitment at Senala. Oriole said it is awaiting the details of the underspend from IAMGOLD and discussions are ongoing to resolve the issue. Under an agreement between the companies, IAMGOLD has the option to spend up to US$8mln to earn a 70% interest in the project.

"We are in discussion with IAMGOLD on its recent request to carry over the Year 3 underspend into Year 4," said Livesey. "We are hopeful of seeing an expanded work plan proposal from them soon which will capture both the existing underspend from Year 3 as well as the Year 4 commitment, and to agreeing an appropriate way forward."

"Meanwhile we reserve our right to give notice of breach for failure to meet the terms of the option agreement. Discussions with IAMGOLD are ongoing, and although we are disappointed that IAMGOLD has missed its spending and work commitment for Year 3, Senala is an exciting asset in a very prospective mineral belt, surrounded by a number of large and encouraging deposits, and the company has a number of options available to deliver value at Senala."

 

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