Oriole Resources plc said it expected drill results from Phase 2 drilling at Madina Bafé in the Senala joint venture gold project in Senegal.
The company’s partner IAMGOLD Corporation has the option to spend up to $8 million to earn a 70% interest in the project.
IAMGOLD, which started its Year 4 of that earn-in during May 2021, has temporarily halted drilling with the start of the seasonal rains and is due to resume operations in October.
PHASE 1
Phase 1 was completed at the Faré prospect, which Oriole believes has the potential to be a standalone deposit, for 689.50m diamond drilling in two holes and 4,854m reverse circulation (RC) drilling in 42 holes.
The RC drilling was over the strongest anomalies of up to 2.58g/t gold identified from Year 3 air core drilling at the Faré North and Faré Far South sub-prospects.
Subject to completion of the Year 4 expenditure plan, IAMGOLD has the right to acquire a 51% interest in the project and will need to spend a further $4m over two years to earn a 70% interest.
PHASE 2
The Phase 2 programme has been partially completed at the Madina Bafé prospect located within 10km of IAMGOLD’s Boto 2.5m ounce mine development project.
The work entailed a further 493m diamond drilling in three holes and 3,111m of a planned 5,000m RC drilling in 48 holes.
Initial results from the programmes are expected during Q3 2021.
SATELLITE TARGET
Oriole chief executive Tim Livesey said that understanding the geological and resource potential at the Faré and Madina Bafé targets would bring significant focus and value to the Senala licence.
“Positive results at Faré would offer the potential to take us closer to delivering a maiden resource, whilst positive results at Madina Bafé may mean the prospect consolidates as a satellite target for the neighbouring Boto mine development project.”
He added that IAMGOLD planned to invest this year an additional $60m on advanced site works and detailed engineering in Boto.