Shares of AIM-listed Oriole Resources (LON: ORR) are gaining on Tuesday after the company said it has reached an agreement with joint venture partner IAMGOLD regarding Senegal's Senala project.
Oriole Resources share price is trading over 17% higher at 1.055p per share.
An agreement was reached with IAMGOLD in respect of carrying forward an underspend of US$172,000 into Year 4, and they also proposed a programme of expenditure that will meet the Year 4 commitment of US$1.5 million before 28 February 2022.
Completing the funding will see them earn the option to acquire a 51% interest in the project.
The funds will be used to undertake a two-phase work programme. The first phase will comprise a planned 5,000m of reverse circulation drilling and 1,000m of diamond drilling at the northernmost Faré prospect. This work is now scheduled for completion before the end of Q2-2021.
The second phase has a planned 5,000m of RC drilling and 600m of diamond drilling. It will focus on re-testing the system at the southernmost Madina Bafé prospect, where the company's previous drilling had returned 9.60m grading 16.08 grammes per tonne gold.
“The carry forward will mean greater funding for Year 4, allowing additional work to be completed on the Senala licence,” commented Oriole CEO Tim Livesey.
“The programmes will, as always, be led by results, but it's very encouraging to see the exploration team planning to continue development of the potential stand-alone mine target at Faré, as well as expand their drilling of the potential Boto satellite mineralisation at Madina Bafé,” Livesey added.
Oriole also released a separate update on its 11.8% interest in Thani Stratex Djibouti. The company reported further limited drilling and surface grab sampling results from Phase 1 exploration at the Hesdaba project.
The best results showed 1.00m grading 2.1g/t (grammes per tonne) and 7.62 g/t, respectively, and follow the previously reported best intersections of up to 15.00m grading 4.08 g/t.
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