The Oriole Resources PLC (LON: ORR) share price spike 5.12% higher after issuing a positive update on its Senala Gold project in Senegal, where it completed a 2,148 metres reverse circulation (RC) drilling campaign.
The drilling results revealed extended mineralisation at all three prominent anomalies along the strike. Some of the results generated during the drilling programme include 2.00m grading 26.61 grammes per tonne (g/t) gold (Au) and 5.00m grading 12.45 g/t gold (Au).
Investors cheered the news that brings the Senala gold project much closer to production, evidenced by the slight rally in Oriole Resouces shares.
However, the rally did not last as ORR shares had given up most of their gains at the time of writing since the project still has a long way to go before producing gold and generating revenues.
Luckily for Oriole Resources, the project does not have to start producing gold to generate revenues from it.
Oriole partnered with IAMGOLD, which agreed to spend up to $8 million to acquire a 70% interest in the project.
The Year 4 Phase 2 RC drilling results confirmed that mineralisation at Fare is open to the northeast at all three of the main anomalies. The Best intersections were returned from the Faré South and Faré Far South anomalies, which include:
1.00m grading 6.08 g/t Au from 12.00m (FARC21-0135), 5.00m grading 12.45 g/t Au from 92.00m including 2.00m grading 26.61 g/t Au (FARC21-0136), and 12.00m grading 0.67 g/t Au from 104.00m including 2.00m grading 1.18 g/t Au and 2.00m grading 1.15 g/t Au (FARC21-0137) at Faré Far South.
IAMGOLD is set to acquire a 51% interest in the project after completing the Year 4 drilling campaign.
Tim Livesey, Oriole Resources CEO, said: “We continue to have great confidence in the Faré area, with further positive results from this programme of step-out drilling. The successful extension of the known mineralisation within the areas of surface anomalism originally identified by our team in 2016 confirms our belief that this prospect has the potential for significant resource growth, with the possibility of becoming a stand-alone mine target of significant size. We look forward to discussing the next steps for the area with our partner, IAMGOLD.”
Oriole Resources shares have fallen over 73% in the past 12 months, but they are up 10.5% since the year started. So the shares might be pretty attractive to investors interested in owning their shares for the long term.
*This is not investment advice. Always do your due diligence before making investment decisions.
Oriole Resources share price.
Oriole Resources share price spiked 5.13% higher on 0.41p, rising from Friday’s closing price of 0.39p.
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