Oriole Resources PLC (LSE:ORR, FRA:S1Y) said a maiden resource estimate for the Faré South prospect of the Senala project in Senegal has been completed.
Oriole reported a JORC-compliant resource estimate of 155,000 ounces of gold grading 1.26 grammes (g/t) a tonne gold in the inferred category, based on a 0.3 g/t gold cut off and within a US$1,800/ounce pit shell.
The resource sits within a larger JORC-compliant exploration target estimate for Faré South of up to 280,000 ounces of gold at 1.10 g/t.
"We are delighted to be in a position to share with our investors an initial resource estimate for Faré South, just one of three targets at the Faré prospect,” said Oriole chief executive Tim Livesey. “As a maiden JORC-compliant resource, completed by an independent consultant, we see this as an excellent first step.”
"The bulk of the mineralisation included in this mineralised envelope at Faré South is associated with the shallower, oxide component of the deposit. This has positive commercial implications on any future mining here as the ore will be comparatively easier and cheaper to extract, using open-pit mining techniques.
"Whilst additional work will be required to confirm a larger deposit, capable of supporting standalone economics, there is plenty of potential to expand this maiden resource estimate, both laterally and at depth, with the addition of more drilling at Faré South.
"Potential also exists for the identification of additional resources along strike at the neighbouring Faré Far South and Faré North anomalies,” he added.
The report was completed independently of joint venture partner IAMGOLD.
IAMGOLD has the right to acquire a 51% interest in the Senala project once it completes the current Year 4 expenditure plan and then has the option to lift this interest to 70% if it spends a further US$4mln over two years.