25th Oct 2018 11:47
LONDON (Alliance News) - Oriole Resources PLC said on Thursday "broad" zones of gold have been found at its Dalafin project in eastern Senegal.
Oriole, formerly known as Stratex International, has an 85% stake in Dalafin. IAMGOLD Corp, Oriole's partner at the mine, has an option to spend USD8 million for a 70% stake.
IAMGOLD started a drilling programme on the Madina Bafe prospect during the second quarter of 2018, carrying out 2,428 metres at 552 holes.
The best results included, Oriole said, grades of 2.5 grammes of gold per tonne of ore, as well as 0.7% gramme of gold per tonne of ore.
An anomaly, was found over 1.5 kilometres at the south-east of Madina Bafe, which Oriole said is coincident with bismuth and molybdenum and confirms a trend indicated before.
A second gold anomaly was found, over 400 metres long, confirming further termite anomalism found by Oriole previously - indications of gold can be found in termite mounds, dug out from underground.
In November, the partners will start a 3,000 metre drill programme to test new targets, as well as 500 metres of following up drilling on other previously drilled areas.
Oriole Chief Executive Tim Livesey said: "We are very glad to see IAMGOLD progressing so quickly with their earn-in on Dalafin and are especially pleased the initial air core drilling campaign has been successful in 'seeing-through' the lateritic cover, identifying broad zones of anomalous gold mineralisation as well as higher grade samples that could indicate a feeder zone at depth.
"These encouraging results have not only supported previous work by Oriole but have importantly also identified new targets. Both will be the focus of deeper, follow-up reverse circulation and diamond drilling, commencing next month."
Shares were down 5.0% on Thursday, quoted at 0.48 pence each.
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