Oriole Resources PLC (LON: ORR) share price fell 9.07% despite releasing a positive update on its gold exploration programme in the East African nation of Djibouti.
The mining company revealed impressive results from the drilling campaign conducted at ts Assaleyta, Pandora, and Hesdaba projects located in Djibouti’s East African Rift Valley.
The drill results included the best intersection of 38.10 metres grading 2.21 grammes per tonne ‘g/t) gold from 126.60m downhole, including 17.37m grading 3.59 g/t Au returned from the Porcupine Hill prospect within the Assaleyta project.
The Hesdaba project also returned impressive results, including samples from hole Hd-D-17 returning 10.75m grading 26.27 g/t Au from 108.25m, including a windfall intersection of 1.22m grading 211.00 g/t Au.
Oriole Resources has a small stake in the project, owned and operated by Thani Stratex Djibouti Limited (TSD). The project is funded and managed by African Minerals Exploration & Development Fund III (AMED Fund III).
Investors sold Oriole Resources shares after the mining company reported that its stake in TSD had fallen to a mere 9.21% as its prepared to unlock the third tranche of funding for the project.
AMED’s stake in TSD has been growing after funding the first two tranches of the project to the tune of $5 million. The fund is set to unlock $2.5 million in additional funding as part of the third tranche once the results from the drilling campaign are available.
Oriole Resources told investors that it would cease providing updates on the project to investors, given that it deems its current stake in the project to be immaterial to its broader operations.
Tim Livesey, Oriole Resources CEO, said: “We are very encouraged to see continued success from the exploration programmes in Djibouti. These recently reported results confirm the opportunity for grading intersections of significant width, further de-risking this ‘new frontier’ project.”
“Whilst we will no longer be reporting regularly on the exploration results for TSD, we do believe that the ongoing exploration programmes are continuing to grow the value of the projects significantly.”
Oriole Resources share price.
Oriole Resources shares fell 9.07% to 0.43p from its opening price of 0.48p.
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