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AC Drilling to Re-Start at Senala Gold Project

RNS Announcement

RNS Number : 6387E

Oriole Resources PLC

09 November 2020

Oriole Resources PLC

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

Air Core Drilling to Re-Start at the Senala Gold Project, Senegal

Oriole Resources (AIM: ORR), the AIM-quoted exploration company focussed on West Africa, is pleased to announce that its joint venture partner IAMGOLD Corporation ('IAMGOLD') will shortly restart its 10,000 metre ('m') air core ('AC') drilling campaign at the Senala project ('Senala' or the 'Project') in Senegal. Prior to the seasonal rains, IAMGOLD had already completed 1,300m AC drilling at the northernmost Faré prospect and will resume its programme there later this month.

Initial results from the programme are anticipated in the first quarter of 2021. Ahead of these new results, the Company has recalculated all historic reverse circulation ('RC') and diamond drilling results for Faré from Stratex International's programmes in 2013 and 2014, using a 0.3 gramme per tonne ('g/t') gold ('Au') cut off and 3m maximum consecutive internal dilution. Best results include 20m grading 31.13 g/t Au including 10m grading 60.98 g/t Au from RC drilling and 59.60m grading 2.20 g/t Au and 49.50m grading 1.75 g/t Au from diamond drilling.

Under the terms of the option agreement, IAMGOLD is approaching the end of its Year 3 commitment to spend up to US$8 million to earn a 70 per cent interest in Senala.

Highlights

· IAMGOLD completed 1,300m AC drilling at the Faré prospect during June and July 2020;

· Recommencement of the planned 10,000m programme later this month;

· Review and recalculation of all historic RC and diamond drilling results has returned exceptional results, including:

o 20.00m grading 31.13 g/t Au from 18.00m, including 10.00m grading 60.98 g/t Au (FARC-00007);

o 10.00m grading 2.34 g/t Au from 50.00m, including 6.00m grading 3.50 g/t Au (FARC-00001);

o 23.40m grading 1.84 g/t Au from 68.60m (FADD-00001);

o 14.00m grading 2.94 g/t Au from 11.10m (FADD-00002);

o 59.60m grading 2.20 g/t Au from surface (FADD-00003);

o 42.00m grading 1.36 g/t Au from 4.10m and 49.50m grading 1.75 g/t Au from 50.60m (FADD-00004);

o 7.00m at 1.31 g/t Au from 14.10m (FADD-00007);

o 7.00m grading 1.64 g/t Au from 17.60m (FADD-00013);

o 5.15m grading 2.92 g/t Au from 170.10m and 10.00m grading 4.12 g/t Au from 192.10m (FADD-00016);

o 19.50m grading 1.08 g/t Au from 93.40m and 4.28m grading 1.02 g/t Au from 146.32m (FADD-00021);

o 23.50m grading 1.41 g/t Au from 6.00m (FADD-00023);

o 12.00m grading 7.09 g/t Au from 18.00m (FADD-00025);

o 4.80m grading 1.38 g/t Au from 63.70m (FADD-00026).

· Based on these results alone, the Company believes Faré has the potential to host a standalone deposit;

· Results from the IAMGOLD programme are anticipated in Q1-2021;

· Subject to those results, IAMGOLD has planned a further 5,000m RC follow-up drilling and 1,000m diamond drilling to further test the extent of the mineralisation.

Oriole CEO Tim Livesey, said: "The historical results at Faré have already shown the potential for the development of a significant gold resource. As we have seen from recent drilling on other licences in the immediate surrounds of Senala, long intercepts with grades well in excess of 2 g/t Au can quickly build the types of volumes required for stand-alone mineable resources.

"We are very eager to see the results of the IAMGOLD programme, which will initially look to make the link between the areas of mineralisation already drill tested. Further work is then planned to begin to pull together the structural interpretation of the mineralised shoots, to allow the development of a resource.

"As a potential stand-alone resource target, with over six kilometres of mineralised strike length, Faré adds significant value to the Senala licence, confirming its importance to Oriole.

"In addition to Faré, we have four other mineralised zones within the Senala licence, already partially explored. The confirmation, earlier this year, of the successful reapplication of the licence area has given us security of tenure and will allow the progressive exploration to continue unhindered by any concerns over licence expiry."

Further Details

In the second quarter of 2020, the Company announced that, as part its US$8 million earn-in at Senala, IAMGOLD had commenced a 10,000m AC drilling programme at the Faré prospect in the north of the licence (Announcement date 29 June 2020; Figure 1). Prior to the seasonal rains in mid-July, a total of 1,300m AC drilling had been completed. IAMGOLD has advised the Company that it plans to restart the programme later this month, with an anticipated completion date of early January 2021. The programme plans to determine the overall geochemical footprint of mineralisation at Faré, including whether any continuity exists between the currently identified Faré North and Faré South zones.

Link to Figure 1. Planned AC drilling at Faré, covering previously-identified gold-in-soil anomalism (>10 ppb Au). Yellow labels highlight best results from RC and diamond drilling to date.

http://www.rns-pdf.londonstockexchange.com/rns/6387E_1-2020-11-9.pdf

Initial results from the programme are anticipated in the first quarter of 2021. Ahead of these new results, the Company has reviewed results for more than 10,000m RC and diamond drilling from Stratex International's programmes in 2013-2014. Recalculation of the data using a 0.3 g/t Au cut off and 3m maximum consecutive internal dilution has delivered a number of multi-gram intervals over substantial widths. Best results include 20m grading 31.13 g/t Au including 10m grading 60.98 g/t Au from RC drilling and 49.50m grading 1.75 g/t Au (Table 1) and 50.60m grading 1.75 g/t Au from diamond drilling (Table 2) (Figure 1).

Table 1. RC intercepts (0.3 g/t Au cut-off). Best results are highlighted in bold.

Hole ID	Prospect	Azimuth (°)	Declination (°)	From (m)	To (m)	Interval (m),*	Grade (g/t)
FARC-00001	Faré South	295	-50	44.00	45.00	1.00	0.30
and				50.00	60.00	10.00	2.34
including				54.00	60.00	6.00	3.50
and				76.00	77.00	1.00	1.20
FARC-00002	Faré South	295	-50	28.00	29.00	1.00	0.49
and				42.00	43.00	1.00	0.31
FARC-00003	Faré South	295	-50	12.00	13.00	1.00	3.01
FARC-00004	Faré South	295	-50	46.00	47.00	1.00	22.15
FARC-00005	Faré South	295	-50	40.00	41.00	1.00	0.37
FARC-00006	Faré South	295	-50	3.00	5.00	2.00	0.40
FARC-00007	Faré South	295	-50	18.00	38.00	20.00	31.13
including				18.00	28.00	10.00	60.98
and				41.00	42.00	1.00	0.46
and				56.00	59.00	3.00	0.55
and				79.00	80.00	1.00	0.57
FARC-00008	Faré South	295	-50	23.00	24.00	1.00	0.36
and				26.00	29.00	3.00	0.94
and				78.00	79.00	1.00	0.38
FARC-00009	Faré South	295	-50	6.00	7.00	1.00	0.72
and				59.00	60.00	1.00	0.43
FARC-00013	Faré North	295	-50	12.00	13.00	1.00	0.38
FARC-00014	Faré North	295	-50	16.00	17.00	1.00	0.53
FARC-00015	Faré North	295	-50	42.00	43.00	1.00	0.36
FARC-00016	Faré North	295	-50	40.00	41.00	1.00	0.58
FARC-00017	Faré North	295	-50	20.00	21.00	1.00	0.31
FARC-00019	Faré North	295	-50	25.00	27.00	2.00	1.81
FARC-00020	Faré North	295	-50	66.00	68.00	2.00	0.41
and				72.00	73.00	1.00	0.54
FARC-00021	Faré North	295	-50	7.00	9.00	2.00	1.64
FARC-00023	Faré North			24.00	25.00	1.00	0.41
FARC-00024	Faré North			16.00	17.00	1.00	0.31
FARC-00025	Faré North	295	-50	36.00	37.00	1.00	0.30
and				50.00	53.00	3.00	0.60
FARC-00026	Faré North	295	-50	27.00	28.00	1.00	0.37
and				30.00	31.00	1.00	0.62
and				65.00	66.00	1.00	0.41
FARC-00027	Faré North	295	-50	45.00	46.00	1.00	1.05
FARC-00029	Faré North	295	-50	22.00	23.00	1.00	0.68
FARC-00030	Faré North	295	-50	16.00	17.00	1.00	0.59
FARC-00031	Faré North	295	-50	8.00	9.00	1.00	0.31
and				13.00	23.00	10.00	0.51
and				35.00	36.00	1.00	0.42
and				49.00	50.00	1.00	0.36
FARC-00032	Faré North	295	-50	20.00	22.00	2.00	0.72
and				52.00	53.00	1.00	0.43
FARC-00033	Faré North	295	-50	10.00	11.00	1.00	0.36
FARC-00034	Faré North	295	-50	12.00	16.00	4.00	0.53
and				18.00	23.00	5.00	0.39
and				40.00	41.00	1.00	1.49
and				56.00	58.00	2.00	0.47
and				64.00	65.00	1.00	0.46
FARC-00041	Faré South	295	-50	3.00	4.00	1.00	0.37
FARC-00042	Faré South	295	-50	29.00	30.00	1.00	0.32
and				47.00	48.00	1.00	0.33
FARC-00043	Faré South	295	-50	13.00	14.00	1.00	0.31
and				20.00	21.00	1.00	0.31
and				23.00	26.00	3.00	0.37
FARC-00044	Faré South	295	-50	23.00	26.00	3.00	1.04
and				50.00	51.00	1.00	0.38
and				72.00	77.00	5.00	0.78
FARC-00050	Faré South	295	-50	44.00	45.00	1.00	0.68
FARC-00051	Faré South	295	-50	0.00	1.00	1.00	0.68
and				32.00	33.00	1.00	0.52
FARC-00052	Faré South	295	-50	16.00	17.00	1.00	0.34
and				30.00	32.00	2.00	1.26
and				37.00	38.00	1.00	0.98
FARC-00053	Faré South	295	-50	21.00	22.00	1.00	0.43
and				29.00	30.00	1.00	1.36
and				42.00	43.00	1.00	4.39
and				50.00	53.00	3.00	0.69
and				70.00	71.00	1.00	1.16
FARC-00055	Faré South	295	-50	33.00	35.00	2.00	0.56
and				37.00	38.00	1.00	0.50
FARC-00056	Faré South	295	-50	69.00	73.00	4.00	0.51
FARC-00061	Faré South	295	-50	59.00	60.00	1.00	0.99
FARC-00062	Faré South	295	-50	21.00	22.00	1.00	0.58
and				24.00	25.00	1.00	0.33
and				32.00	33.00	1.00	0.63
and				42.00	43.00	1.00	0.31
FARC-00063	Faré South	295	-50	3.00	4.00	1.00	0.35
and				11.00	13.00	2.00	0.41
and				30.00	37.00	7.00	0.71
and				43.00	47.00	4.00	0.50
FARC-00076	Faré South	295	-50	14.00	16.00	2.00	0.62
and				52.00	53.00	1.00	0.32
and				59.00	61.00	2.00	1.07
FARC-00078	Faré South	295	-50	45.00	46.00	1.00	0.32

Table 2. Diamond drilling intercepts (0.3 g/t Au cut-off). Best results are highlighted in bold.

Hole ID	Prospect	Azimuth (°)	Declination (°)	From (m)	To (m)	Interval (m),*	Grade (g/t)
FADD-00001	Faré South	115	-50	8.60	13.10	4.50	0.85
and				31.60	32.60	1.00	0.63
and				68.60	92.00	23.40	1.84
FADD-00002	Faré South	295	-50	11.10	25.10	14.00	2.94
and				49.10	50.10	1.00	2.38
FADD-00003	Faré South	295	-50	0.00	59.60	59.60	2.2
and				80.10	83.60	3.50	2.31
FADD-00004	Faré South	295	-50	4.10	46.10	42.00	1.36
and				50.60	100.10	49.50	1.75
FADD-00005	Faré South	295	-50	12.60	14.10	1.50	0.32
and				40.10	41.10	1.00	1.53
and				57.60	58.60	1.00	3.53
and				101.60	105.60	4.00	0.39
FADD-00006	Faré South	295	-50	69.60	70.60	1.00	0.35
FADD-00007	Faré North	295	-50	14.10	21.10	7.00	1.31
FADD-00008	Faré North	295	-50	2.10	3.60	1.50	2.90
and				32.56	34.60	2.04	1.37
and				78.10	80.10	2.00	0.48
and				86.10	87.10	1.00	0.88
FADD-00010	Faré North	295	-50	8.60	9.70	1.10	0.46
FADD-00011	Faré North	295	-50	17.00	21.50	4.50	0.41
FADD-00012	Faré North	295	-50	27.10	28.10	1.00	1.34
and				96.60	100.60	4.00	0.35
FADD-00013	Faré South	295	-50	17.60	24.60	7.00	1.64
FADD-00014	Faré South	295	-60	23.20	27.70	4.50	0.92
and				32.20	33.70	1.50	0.48
FADD-00015	Faré South	295	-60	80.30	81.30	1.00	0.70
FADD-00016	Faré South	295	-60	78.10	80.10	2.00	1.76
and				109.10	110.10	1.00	0.72
and				120.10	121.10	1.00	0.78
and				125.10	126.10	1.00	0.39
and				129.10	130.10	1.00	15.99
and				134.10	136.10	2.00	0.82
and				141.10	144.10	3.00	1.18
and				170.10	175.25	5.15	2.92
and				178.10	179.10	1.00	0.38
and				188.10	189.10	1.00	0.43
and				192.10	202.10	10.00	4.12
and				210.10	211.10	1.00	0.83
and				217.10	222.40	5.30	1.20
and				247.10	248.10	1.00	0.87
FADD-00017	Faré South	295	-60	102.40	103.40	1.00	0.30
and				115.40	116.40	1.00	0.33
FADD-00018	Faré South	295	-60	24.50	25.50	1.00	0.34
FADD-00020	Faré South	295	-60	23.50	37.00	13.50	0.91
and				44.00	46.00	2.00	1.22
FADD-00021	Faré South	295	-60	93.40	112.90	19.50	1.08
and				130.60	131.60	1.00	0.81
and				139.87	142.14	2.27	0.75
and				146.32	150.60	4.28	1.02
FADD-00022	Faré South	295	-60	136.30	141.28	4.98	0.61
FADD-00023	Faré South	295	-60	6.00	29.50	23.50	1.41
and				45.50	47.00	1.50	0.35
FADD-00024	Faré South	295	-60	234.00	242.50	8.50	0.74
FADD-00025	Faré South	295	-60	18.00	30.00	12.00	7.09
FADD-00026	Faré South	295	-60	57.10	68.50	11.40	0.85
including				63.70	68.50	4.80	1.38
and				140.50	145.00	4.50	0.61
FADD-00029	Faré South	115	-50	187.00	188.00	1.00	0.38
and				252.00	253.00	1.00	1.54
and				281.00	283.00	2.00	0.65
and				298.00	299.00	1.00	0.4

*For interval widths greater than 1.0 m, using a 0.3 g/t Au cut-off and no more than 3.0 m consecutive internal dilution.

**True widths are estimated to be between 77% and 87% of the reported interval thickness, except for holes FADD-00001 and FADD-00029, where estimate true width is 42%.

Based on these results alone, the Company believes Faré has potential to host a standalone deposit. Subject to the results from the current AC drilling programme, IAMGOLD has planned a further 5,000m RC follow-up drilling and will also be undertaking a planned 1,000m diamond drilling to test mineralised intervals previously identified by Stratex International.

IAMGOLD is currently in Year 3 of its earn-in and, under the terms of the option agreement, must spend a further US$1 million by the end of February 2021 to keep the option in good standing.

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 release that relates to Exploration Results has been compiled by Claire Bay (VP Exploration and Business Development). Claire Bay (MGeol, CGeol) is a Competent Person as defined in the JORC code and takes responsibility for the release of this information. Claire has reviewed the information in this announcement and confirms that she is not aware of any new information or data that materially affects the information reproduced here.

** ENDS **

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Following 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:

Oriole Resources PLC Tim Livesey / Bob Smeeton / Claire Bay	Tel: +44 (0)20 7830 9650
Blytheweigh (IR/PR contact) Tim Blythe / Megan Ray / Rachael Brooks	Tel: +44 (0)20 7138 3204
Grant Thornton UK LLP Samantha Harrison / Seamus Fricker	Tel: +44 (0)20 7383 5100
Shard Capital Limited Damon Heath / Erik Woolgar / Isabella Pierre	Tel: +44 (0)20 186 9900

Notes to Editors:

Oriole Resources PLC is an AIM-quoted exploration company, operating West Africa. It is focused on early-stage exploration in Cameroon (Bibemi and Wapouzé projects) and the more advanced Senala gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. Year 2 commitments have been met at all three projects. The Company 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.

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END

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RNS metadata

Title: AC Drilling to Re-Start at Senala Gold Project
Time: 07:00:12
Date: 9 Nov 2020
Category: Corporate updates
ID: 6387E