Oriole Resources (LSE:ORR) sat at 0.37p with a market cap of £2.6m on Monday morning after revealing positive drilling progress at its 85pc-owned Dalafin gold project in eastern Senegal.

The firm said that significant local player IAMGOLD, which owns an option to earn up to 70pc in Dalafin, has now completed 4,167m of a planned 5,000m drilling programme on a prospect called Madina Bafé. The shallow aircore (AC) drilling identified numerous new gold anomalies at more than 20 parts per billion (ppb). Indeed, highlights include a best grade of 235ppb as well as 157ppb, 138ppb and 104ppb. IAMGOLD’s 869 holes have also identified a 3.5km-long northeast-trending anomaly at the south of Madina Bafé and a 2km-long northeast-trending anomaly in the north of the prospect.

IAMGOLD is earning-in to an initial 51pc interest in Dalafin by spending $4m on exploration over four years. It can increase its stake to 70pc by funding an additional $4m over the subsequent two years. The company is currently in year two of its earn-in and is focusing on exploration in the southernmost Madina Bafé and Saroudia prospects. It is focusing on these two prospects first because they are closest to its 2.49MMoz Boto gold project.  Given that the sites are within trucking distance to Boto, IAMGOLD hopes to use them as feed for its planned mine.

The business has now stopped work for the west season, with plans in place to resume its $1m programme of work in October. This is expected to see it follow-up on best results to date at Madina Bafé with a 4,000m RC drilling programme. The organisation also plans to complete 2,500m of AC drilling at the Saroudia prospect, which it will then follow with 1,600m of RC drilling to chase up highlight results.

Oriole’s chief executive Tim Livesey said the business was ‘very pleased’ with IAMGOLD’s latest drilling progress at Madina Bafé, adding: ‘The identification of yet more gold targets has expanded our area of interest in the south of Madina Bafé to a substantial 16km2. The identification of a further 2km long anomaly several kilometres north of this, leaves us convinced of the more prospective nature of our Dalafin licence within this highly endowed geological terrane. We are confident that follow-on RC Drilling will provide further definition of these targets at Madina Bafé, and that more anomalism will be identified as the programme extends to the Saroudia area.’

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

The Author has not been paid to produce this piece by the company or companies mentioned above

Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance