Key points:
- Oriole Resources shares surged 17.1% on bonanza gold deposits.
- The miner reported excellent phase 3 diamond drilling results at Bibemi.
- The company’s shares are down 77.7% in 12 months and look attractive.
The Oriole Resources PLC (LON: ORR) share price surged 17.1% after the latest phase 3 diamond drilling programme at its Bibemi mine in Cameroon revealed bonanza grade gold deposits.
The mining company focused on West Africa uncovered a bonanza gold deposit intersection of 1.10m grading 36.06 g/t Au. A bonanza gold deposit equal to or greater than 31.10 g/t Au, or one troy ounce per tonne.
Investors cheered the announcement, as evidenced by the Oriole Resources share price rally, and many cannot wait for the company to reach the production stages.
Also Read: Best Gold Stocks to Buy Right Now.
Other highlights of the drilling campaign included an interval of 9.20 metres grading 1.31 grammes per tonne (g/t) gold (Au) and 2.10m grading 19.04 g/t Au.
Oriole Resources is currently working on a JORC-classified Exploration Target at the prospect and still has three other prospects to analyse at the Bibemi mine.
The company also released an update on the exploration work at its Wapouzé gold project in Cameroon, where it had completed a soil sampling project.
The results of the programme include 2.00m grading 0.53 g/t Au at WPT006; 2.00m grading 4.06 g/t Au at WPT007; and 1.50m grading 0.53 g/t Au and 2.00m grading 0.50 g/t Au at WPT008.
The Wapouzé gold project is located 20Km away from the Bibemi project, at advanced exploration stages. However, the deposits at the project are spread over a parallel 2.8km-long anomaly.
Tim Livesey, Oriole Resources CEO, said: “The Phase 3 infill and extension drilling has again delivered multiple gold intersections at the Bakassi Zone 1 target, confirming our ideas on the prospectivity of the area. This programme has given us additional geological, structural and mineralisation data with which we move closer to the definition of an ‘Exploration Target’, under JORC rules.”
Adding:
“We are pleased that the infill drilling, in particular, has given us such good correlation with previous intersections, and we are working to continue the development of our exploration targeting model at Bakassi Zone 1. It is important to note that Bakassi Zone 1 remains open along strike in both directions and at depth.”
Oriole Resources shares have fallen 77.7% in the past 12 months, making it look quite attractive at current prices. I would buy the shares if looking for investment targets in the mining sector, but it would be a long term investment.
*This is not investment advice. Always do your due diligence before making investment decisions.
Oriole Resources share price.
Oriole Resources share price rallied 17.14% to trade at 0.41p, rising from Tuesday’s closing price of 0.35p.