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The shares of AIM-quoted Oriole Resources (LON: ORR) declined on Friday after reporting the latest drill results from its Phase 1 reverse circulation (RC) drilling programme at the Fare prospect at the Senala project in Senegal.
The company also reported initial results for the Phase 2 RC drilling at Madina Bafé.
The Phase 1 RC drilling results are for the final four holes at the Faré prospect. The best intersections included a result of 1 gram per ton of gold over 8m from 112m.
Oriole's joint venture partner, IAMGOLD, has the option to spend up to $8 million to earn a 70% interest at the Senala project. They are currently in Year 4 of the earn-in and have completed more than 80% of a two-phase exploration programme this year.
In August, Oriole reported 11m grading 1.22 grams per tonne of gold from year 4 RC drilling at Senala. It was one of several news updates during the month, which also saw them complete a Mineral Resource Estimate (MRE) for the Faré South prospect at Senala.
Today, Oriole also released initial results from Phase 2 RC drilling programme at Madina Bafé, where 3,111m of a planned 5,000m drilling has been completed. The results included 5m grading 0.56 grams per ton of gold from 9m, 2m grading 9.36 grams per ton of gold from 40m and 4m grading 0.98 grams per ton of gold.
The remainder of the program is to be completed in Q4 after the seasonal rains have eased.
Oriole Resources CEO, Tim Livesey, said: “We are very pleased to see the continuation of mineralisation being evidenced by the second line of RC drilling at FaréFar South, some 300m from the previously announced intersections. This gives support to our idea that there are opportunities for multiple pods of mineralisation along the c.6.3 kilometre Faré trend, which could be combined to provide sufficient resources for a stand-alone development target.
“At Madina Bafé, these early intersections again support the presence of mineralisation and we would hope that additional work could identify the controls on mineralisation in this area.”
Oriole investors haven't been impressed by the results, with shares in the company falling 8.95% to 0.433p following the news.
Oriole Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are ORR shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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