Oriole Resources plc said it had reached an agreement over an underspend with its joint venture partner of £1.8 million at the Senala gold project in Senegal.
Earlier in March, IAMGOLD Corporation had requested to carry forward US$172,000 from Year 3 into Year 4. bityl.co/660c
As per the terms of the option agreement, IAMGOLD proposed a programme of expenditure to cover the shortfall and meet the Year 4 commitment of $1.5 million before 28 February 2022.
IAMGOLD proposes a Year 4 exploration budget of $1.789m to fund a two-phase work programme at Senala.
Completion of the funding will see the company earn the option to acquire a 51% interest in the project.
TWO-PHASE PROGRAMME
Phase 1 comprises a planned 5,000 metres of reverse circulation (RC) drilling in 42 holes and 1,000m of diamond drilling at the northern most Faré prospect.
This work is due to start shortly and scheduled for completion before the end of the second quarter of 2021 with results expected in Q3 2021.
Phase 2 comprises a planned 5,000m of RC drilling in 50 holes and 600m of diamond drilling in two holes.
It will focus on re-testing the system at the southernmost Madina Bafé prospect, where previous drilling in 2014 by the Oriole returned 9.6m grading 16.08 grammes per tonne (g/t) gold.
Subject to results from Phase 1, IAMGOLD reserves the right to redirect the Phase 2 funding to undertake follow-up work at Faré.
Oriole chief executive Tim Livesey said that the agreement with IAMGOLD was the best value for the company.
“The carry forward will mean greater funding for Year 4, allowing additional work to be completed on the Senala licence.
“The programmes will, as always, be led by results, but it’s very encouraging to see the exploration team planning to continue development of the potential stand-alone mine target at Faré, as well as expand their drilling of the potential Boto satellite mineralisation at Madina Bafé.
“With the Senala exploration programme continuing its fourth year in the safe hands of the IAMGOLD team, the substantial planned drilling programmes at both Faré and Madina Bafé will ensure steady progress through the year and we look forward to sharing the results as they become available.”
IAMGOLD has the option to spend up to $8m to earn a 70% interest in the project.