Shares of Oriole Resources PLC (LON: ORR) plunged 31.4% after the mining and exploration company released an update on Senegal’s Senala gold project.
The report showed that its earn-in partner IAMGOLD had not met its drilling target for year 3 of its earn-in agreement forcing the work to spill over into year four, which began at the end of February 2021.
IAMGOLD drilled 6,901m of ‘air core’ (AC) drilling for 912 holes at the Faré prospect up to a maximum depth of 10m, which many investors found disappointing. The company collected 1,344 samples, which were analysed for gold and other elements.
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The results revealed significant surface anomalies with the best gold grades of 0.62 g/t Au, 0.64 g/t Au and 2.58 g/t Au at Faré North, a previously-identified dominant trend.
Investors were disappointed by the results triggering today’s decline and eroding their confidence in the company following yesterday’s positive update from its management team.
Oriole Resources top executives had visited the Bibeni gold project in Cameron. They had a live interview yesterday where they issued a favourable report on the site’s progress. The company has drilled four holes so far, given that it only has one drill rig and had found blind veins that were more prospective than they initially thought.
The team was optimistic about the progress made before today’s announcement triggered a selloff due to IAMGOLD’s underperformance in Senegal.
Oriole Resources share price.
Oriole Resources share price crashed 31.4% to trade at 0.86p, falling from Wednesday’s closing price of 1.25p.
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