Aim-listed Oriole Resources has completed, independently of joint venture partner IAMGOLD, a mineral resource estimate (MRE) for the Faré South projects at its Senala project in Senegal.
It has declared a maiden Joint Ore Reserve Committee- (Jorc-) compliant resource of 155 000 oz of gold grading 1.26 g/t gold in the inferred category, based on a 0.3 g/t gold cut-off and within a $1 800/oz pit shell.
IAMGOLD has the option to spend up to $8-million to earn a 70% interest at Senala and it is currently in Year 4 of that earn-in.
This resource sits within a larger Jorc-compliant exploration target estimate for Faré South of up to 280 000 oz of gold grading 1.10 g/t gold.
The mineral resource and exploration targets have been compiled for Oriole by an independent consultant, Forge International.
Both estimates remain open at depth and along strike.
On August 16, Oriole announced initial results from IAMGOLD’s Year 4 drilling programmes at the Faré and Madina Bafé prospects.
This included reported intervals, from the 689.50 m Phase 1 diamond drilling programme at the Faré South anomaly, of up to 70.00 m grading 1.46 g/t gold.
Results reported on August 18 for 38 reverse circulation (RC) holes drilled at the Faré North and Faré Far South anomalies, which returned best intersections of up to 11 m grading 1.22 g/t gold and 35 m grading 3.61 g/t gold respectively, are not included in the resource or exploration target estimates and, therefore, provide additional upside for potential resources.
Subject to completion of the Year 4 expenditure plan, IAMGOLD will have the right to acquire a 51% interest in the project.
"We are delighted to be in a position to share with our investors an initial resource estimate for Faré South, just one of three targets at the Faré prospect.
As a maiden Jorc-compliant resource, completed by an independent consultant, we see this as an excellent first step,” Oriole CEO Tim Livesay says.
The bulk of the mineralisation included in this mineralised envelope at Faré South is associated with the shallower, oxide component of the deposit.
This has positive commercial implications on any future mining here as the ore will be comparatively easier and cheaper to extract, using openpit mining techniques, he indicates.
“While additional work will be required to confirm a larger deposit, capable of supporting standalone economics, there is plenty of potential to expand this maiden resource estimate, both laterally and at depth, with the addition of more drilling at Faré South.
“Potential also exists for the identification of additional resources along strike at the neighbouring Faré Far South and Faré North anomalies. We are particularly excited by the latest results from Faré Far South, which returned a best drill interval of 35 m grading 3.61 g/t gold,” Livesay acclaims.