Oriole Resources plc has confirmed enhanced gold-in-soil anomalies in the latest results from its Senala project in Senegal, West Africa.
Operator and Oriole’s joint venture partner, IAMGOLD Corporation, is due to begin a further drill programme to test anomalism identified along the strike length from previous drilling at Faré North and at Faré Far South.
The programme will start once the JV partners have resolved an issue of an underspend on IAMGOLD’s US$1 million commitment for Year 3 at Senala. This was caused by a delay in work due to the pandemic.
Under terms of the companies’ option agreement, IAMGOLD has the option to spend up to $8m to earn a 70% interest.
The recently completed air core (AC) drilling programme at the northernmost Faré prospect aimed to test the geochemistry of the immediate sub-surface, below the influence of any lateritic and/or transported cover, with a single sample taken per hole.
Results show best values of 2.58 g/t Au, 0.64 g/t Au and 0.62 g/t Au, which supports and enhances the previous gold-in-soil anomalies defined by the company, and that the majority of the anomalism is in situ.
A follow-up exploration programme will comprise 5,000 metres reverse circulation (RC) drilling and 1,000m diamond drilling.
Oriole said that the programme was subject to a mutual agreement on addressing outstanding issues related to the option agreement.
These include the fact that the work had been scheduled for completion within Year 3 of the earn-in but will now fall into Year 4 which began at the end of February 2021.
DISCUSSIONS
Oriole chief executive Tim Livesey said that Senala was an exciting asset in a very prospective mineral belt, surrounded by a number of large and encouraging deposits.
“We have always believed that, based on the existing RC 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.
“We are in discussion with IAMGOLD on its recent request to carry over the Year 3 underspend into Year 4.
“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.”
Mr Livesey added that Oriole reserved its right to give notice of breach for failure to meet the terms of the option agreement.