AIM-listed explorer Oriole Resources reports that its joint venture partner, IAMGOLD Corporation has initiated its year three option to spend up to US$8 million to earn a 70% interest in the Senala project in Senegal.
IAMGOLD’S decision to commence its year three earn-in at Senala, follows the recent successful application for a new licence at the project, providing security of tenure for up to a further 10 years.
Since signing the option agreement in March 2018, IAMGOLD has focused on the Madina Bafé prospect in the south of Senala, where best results to date include 9.6 m grading 16.08 g/t of gold from 15.10 m (MBDD-002), 15 m grading 6.10 g/t of gold from 14 m and 8 m grading 2.56 g/t of gold from 76 m.
Madina Bafé lies within 10 km of the 2.5 Moz Boto gold project, where around US$30 million of investment in infrastructure has recently been announced ahead of a construction decision during H1-2020, and has the potential to be a satellite deposit.
In November 2019, IAMGOLD completed its 2019/20 work programme, with air core drilling at the Saroudia prospect, immediately north of Madina Bafé. A total of 3 158 m were drilled in 454 holes (200m x 50m spacing) to test possible extensions of the surface gold anomalism already defined by Oriole Resources, with a single sample taken in each hole at the saprolite interface. No additional trends were identified at Saroudia and so no further work is planned for this prospect.
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IAMGOLD has confirmed that it will now move northwards to commence drilling at the Faré prospect.
Faré is the most advanced prospect within the Senala licence and Oriole Resources believes it has potential to host a standalone deposit. The company had previously completed more than 10 000 m of reverse circulation and diamond drilling at Faré, delivering best intersections of 96 m grading 1.51 g/t of gold and 7 m grading 86.39 g/t of gold.
Soil sampling at Faré, carried out by Oriole Resources in 2016, identified a south-westward extension of the Faré South gold anomaly (>30 ppb gold) by at least 750 m and up to 600 m in width. An initial programme involving approximately 10 000 m of air core drilling is planned to further define and confirm areas of anomalism. A follow up reverse circulation drilling programme will be designed contingent on results from the air core drilling.
As a result of the new licence, new permits (environmental, water and forestry) applications are under way to enable commencement of the programme.
Since signing the agreement in March 2018, IAMGOLD has spent a total of US$1.5 million. As per the terms of the option agreement, IAMGOLD must spend a further US$1 million during year three to keep the option in good standing.