Oriole Resources PLC 

('Oriole Resources' or 'the Company' or 'the Group')

Senala Update: Maiden Inferred Gold Resource for Faré South

Oriole Resources PLC (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, is pleased to provide an update on its Senala project ('Senala' or the 'Project') in Senegal, where joint venture partner IAMGOLD Corporation ('IAMGOLD') has the option to spend up to US$8 million to earn a 70% interest (announcement dated 1 March 2018). IAMGOLD is currently in Year 4 of that earn-in.

On 16 August 2021, the Company announced initial results from IAMGOLD's Year 4 drilling programmes at the Faré and Madina Bafé prospects. This included reported intervals, from the 689.50m Phase 1 diamond drilling programme at the Faré South anomaly ('Faré South'), of up to 70.00 metres ('m') grading 1.46 grammes per tonne ('g/t') gold ('Au').

The Company today reports that it has completed, independently of IAMGOLD, a Mineral Resource Estimate ('MRE') for Faré South that has delivered a maiden JORC-compliant Resource (the 'Resource') of 155,000 oz Au grading 1.26 g/t Au in the Inferred category, based on a 0.3 g/t Au cut off and within a US$1,800/oz pit shell. This Resource sits within a larger JORC-compliant Exploration Target estimate for Faré South of up to 280,000 oz Au grading 1.10 g/t Au[1]. The Mineral Resource and Exploration Target have been compiled for Oriole by an independent consultant, Forge International Limited. Both estimates remain open at depth and along strike.

The recently reported results for 38 reverse circulation ('RC') holes drilled at the Faré North and Faré Far South anomalies, which returned best intersections of up to 11.00m grading 1.22 g/t Au and 35.00m grading 3.61 g/t Au respectively (announcement dated 18 August 2021), are not included in the Resource or Exploration Target estimates and therefore provide additional upside for potential resources.

Summary

·    Oriole-engaged independent consultants have estimated a maiden JORC-compliant MRE for Faré South of 155,000oz Au grading 1.26 g/t Au in the Inferred category.

·    The entire Resource has been defined within the limit of an US$1,800/oz pit shell, with more than two-thirds of the Resource being attributed to near-surface oxide material.

·    The Resource sits within a larger JORC-compliant Exploration Target for Faré South which has up to an estimated 280,000 oz Au grading 1.10 g/t Au. Both the Resource and Exploration Target at Faré South are open at depth and along strike to the northeast and southwest.

·    A selection of two and three-dimensional models for the Faré South Resource can be viewed at the following link [http://www.rns-pdf.londonstockexchange.com/rns/3894J_1-2021-8-22.pdf].

·    Recently received RC drilling results for the Faré North and Faré Far South anomalies have not been modelled as part of the Resource and therefore highlight the potential for the definition of additional near-surface resources at Senala.

·    Subject to completion of the Year 4 expenditure plan, IAMGOLD will have the right to acquire a 51% interest in the Project.

Oriole Resources CEO, Tim Livesey, said: "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.  

"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 open-pit mining techniques.

"Whilst 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 35.00m grading 3.61 g/t Au.

"We look forward to reporting further results for the Project as they become available."

Further Details

Under the terms of an Option Agreement on the 472.50km² Senala licence, IAMGOLD is currently in Year 4 of its investment period with a planned exploration budget of at least US$1.672 million (announcement dated 29 March 2021). In July, the Company reported that IAMGOLD had completed Phase 1 of its Year 4 programme at the northernmost Faré prospect, where the Company has previously defined anomalous mineralisation over a strike length in excess of 6km (announcements dated 4 December 2012 and 6 June 2016), and was significantly advanced on its Phase 2 programme at the Madina Bafé prospect, located c. 40km to the south.

The Phase 1 programme included 689.50m diamond drilling in two holes at Faré South, which returned a number of encouraging intersections, most notably 70.00m grading 1.46 g/t Au including 31.00m grading 2.72 g/t Au.

On the basis of those results, as well as previous drilling by the Company in 2013 and 2014, the Company today reports that it has completed, independently of IAMGOLD, an MRE for Faré South that has delivered a maiden JORC-compliant Resource of 155,000 oz Au grading 1.26 g/t Au in the Inferred category, based on a 0.3 g/t Au cut off and within a US$1,800/oz pit shell (Table 1). More than two thirds of this Resource has been defined within oxide material, which supports the case for low-cost extraction should the Resource undergo future development.

Table 1. Resource tabulation for Faré South using a 0.3 g/t Au cut off and within a US$1,800/oz pit shell

Notes:

·      The Operator of the Faré South Project is IAMGOLD.

·      The Resource Estimate is shown on a gross (100%) basis of the Faré South target within the Senala Project. Oriole currently holds an 85% net attributable interest through the licence holding company, Stratex-EMC S.A. The Company's joint venture partner, EMC S.A., holds the remaining 15% interest.

·      To define the blocks with reasonable prospects of economic extraction, the Inferred Mineral Resource Estimate is reported above a cut-off grade of 0.3 g/t and constrained within wireframe models representing the mineralised bodies and within a Lerchs-Grossman optimised pit shell based on a gold price of 1,800 USD / oz, with the application of reasonable mining parameters.

·      All figures are rounded to reflect the relative accuracy of the estimate.

·      Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. It is uncertain if further exploration will convert Inferred Mineral Resources to higher confidence categories.

·      The Resource estimate has an effective date of 13 August 2021.

·      The Resource has been estimated by Mr. Robert Davies, EurGeol, CGeol, a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (The JORC code).

At a higher gold price, the cut-off grade of the Resource could be reduced to 0.2 g/t Au or even 0.1 g/t Au which would in turn increase the tonnage and total contained gold, albeit reducing the average gold grade slightly. Further information on the grade tonnage sensitivity for the Resource is shown in Table 2. 

Table 2. Grade tonnage sensitivity for Faré South resource at 0.1 g/t Au intervals

This maiden Inferred Resource has been estimated using 25 diamond holes and 55 RC holes for a total 8,496.80m. This Resource is contained within a larger, JORC-compliant Exploration Target for Faré South that has up to an estimated 280,000 oz Au grading 1.10 g/t Au (Table 3). The Exploration Target is along strike of the Mineral Resource in areas of the deposit where there is insufficient sample support to be Classified as Inferred Resource. With infill drilling it is hoped that the size and confidence level of the existing Resource will be increased to incorporate some of the additional ounces.  

Table 3. Exploration Target for Faré South

Note:

·      The Exploration Target is an estimate of the exploration potential of the Faré South mineral deposit and includes the areas from which a Mineral Resource has been estimated.

·      The exploration target has been generated using 25 diamond holes and 55 RC holes for a total 8,496.8 m. The estimate has been prepared by wireframe modelling of mineralised bodies, using a 0.1 g/t cut-off and following the geological and structural interpretation for the deposit. The estimate has been limited to 200m below the current topography. The grade is presented as a range 20% above and 20% below the actual grade estimated using an inverse distance weighting interpolation, applying a cut-off of 0.3 g/t gold. The blocks include areas of the model that do not have sufficient sample support to be reported as Resource. 

·      The RC and Diamond drilling covers a strike length of approximately 1500m. All of the data has been used to create wireframe models and a block model. All of the data also feeds into the statistical analysis and variography for the deposit.

·      Of the 1,500m strike length, only 950m has sufficient data density to support an Inferred Resource Classification and demonstrates reasonable prospects for eventual economic extraction. The remaining strike length does not have sufficient exploration to be defined as Resource and or does not demonstrate reasonable prospects of eventual economic extraction with the current level of drilling. 

·      It is proposed that the exploration targets will be tested with infill Diamond and Reverse Circulation drilling.

·      The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for the entire deposit. It is uncertain if further exploration will result in the conversion of the remaining Exploration Target to Mineral Resource.

·      The Exploration Target has been estimated by Mr. Robert Davies, EurGeol, CGeol. A Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (The JORC code).

The Phase 1 programme also comprised a further 4,854m RC drilling in 42 holes that were focussed on testing the system along strike at Faré North and Faré Far South. Results for 38 holes, published earlier this month, returned best intersections of up to 11.00m grading 1.22 g/t Au and 35.00m grading 3.61 g/t Au respectively (announcement dated 18 August 2021). Data for Faré North and Faré Far South is not included in the Resource or Exploration Target estimates and therefore provide additional resource potential upside at Faré. Results for a further four RC holes, drilled on the southernmost fence line at Faré Far South are still awaited and are expected before the end of Q3 2021.

Phase 2 of the exploration programme at Senala is scheduled to resume in Q4-2021, with completion of the c.2,000m outstanding RC drilling at Madina Bafé.

For further information, including an updated JORC Table 1, please see the Senala page on the Company's website https://orioleresources.com/projects/senala/.

Competent Persons Statement 

The information in this announcement that relates to Mineral Resources is based on data compiled by Mr. Robert Davies, EurGeol, CGeol, an independent consultant to Oriole. Mr Davies is a Director of Forge International Limited. Mr Davies has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Davies consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

** ENDS **

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:

Notes to Editors:

Oriole Resources PLC is an AIM-listed exploration company, operating West Africa. It is focused on early-stage exploration in Cameroon (Bibemi, Wapouzé and Central Cameroon projects) and the more advanced Senala gold project in Senegal, where IAMGOLD has the option to spend US$8 million to earn a 70% interest. The Company also has several interests and royalties in companies operating throughout Africa and Turkey that could deliver future cash flow, and it continues to assess new opportunities in both regions.