Shares in Oriole Resources (LSE:ORR) advanced 1.4pc to 0.36p on Wednesday after the business announced ‘very encouraging’ high-grade anomalies at its assets in Cameroon.
In an exploration update for the Bibemi asset, where it is earning up to a 90pc interest, Oriole said the first phase of a trenching programme has confirmed multiple zones of gold mineralisation. This includes 6m at 3.02 g/t gold with individual veins returning up to 13.7 g/t.
The trenching programme is now complete, with the remaining results anticipated later this quarter or in early Q2 2019. The work followed the news last November that rock-chip sampling results for Bibembi had demonstrated ‘bonanza’ high-grade gold anomalism extending over the c.4km strike. A phase two trench programme will now begin for a planned 4,360m.
Elsewhere on Wednesday, Oriole said it has also completed soil sampling at the earlier stage Wapouze project, where it is also earning up to a 90pc stake. Results for 2,119 soil samples and 146 rock samples are expected later this month.
Oriole entered a conditional option agreement with established Cameroonian outfit BEIG3 in June last year for Bibemi and Wapouzé. The assets cover the highly prospective Neoproterozoic Pan-African greenstone belts in the north-east of the country.
The two-part agreement gives Oriole the right to earn up to a 90pc interest in the projects and take over their management. For an initial 51pc stake, the firm must fund $1.56m of exploration over two years, with a minimum commitment of $560,000 in the first year. It can then earn up to a further 39pc in exchange for another $1.56m exploration payment.
Earlier this year, Oriole said it would invest a portion of its £500,000 rebate from the UK tax office into the projects.
In Wednesday’s update, the company’s chief executive Tim Livesey said: ‘These results from our first phase of trenching at Bibemi are very encouraging and, together with the Phase 2 infill trenching, will assist us in both gaining a better understanding of the mineralised system and progressing towards a drill decision later in the year.
‘Though the higher-grading intercepts may appear at first glance to be rather sporadic, they do follow the previously mapped trends and confirm our early model of shear-related vein mineralisation. When one considers the scale of the area and the average 200m-spacing between trenches, the results to date suggest the presence of multiple mineralised ore shoots within what is a major 600m-wide structural corridor.’
He added that there remains work to do to under the controls on mineralisation in such a complex structural environment properly.
‘Remembering that the individual ore shoots in many of the world’s biggest mines exploiting this kind of orogenic gold deposit have strike lengths of around 200-400m, our immediate task now is to target the higher-grade sections with the intention of defining specific ore shoots and the geological factors controlling their localisation,’ he added.
Author: Daniel Flynn
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