Shares of Oriole Resources PLC (LON: ORR) exploded 27.3% higher after the company issued a positive update on its gold mining projects located in various West African countries.
Investors cheered the multiple positive updates sending Oriole’s shares higher, extending last week’s rally that has now turned parabolic due to the massive gains accumulated over the past six days.
The company noted that its Canadian partner IAMGOLD had completed a 10,000-metre air core drilling programme at the Senala project in Senegal as scheduled.
IAMGOLD is in the third year of its earn-in partnership with Oriole Resources, requiring it to spend an additional $1 million on the project by the end of February 2021.
IAMGOLD will complete another 5,000 metres follow-up reverse circulation drilling combined with 1,000 metres of diamond drilling to test mineralised intervals identified in the past, based on the initial results.
Oriole Resources revealed that it expects the initial results of its maiden diamond drilling programme at the Bibemi project in Cameroon later this quarter and into Q2.
The firm also confirmed that pilot trenching is underway at Wapouzé to test key gold-in-soil anomalies identified earlier from soil samples.
The company is also looking forward to the approval of eight new licences in central Cameroon covering a total area of 3,500 square kilometres with high potential for gold mineralisation.
Oriole’s Djibouti partnership known as Thani Stratex, in which the company has an 11.8% stake, completed its Phase 1 programme at the Hesdaba project for 2,242 metres diamond drilling in 17 holes and 3,413 metres of RC drilling in 33 holes.
Given the over-extended nature of Oriole’s share price, I would wait for a pullback before establishing any new positions. I would also secure some of the profits on any open positions.*
*this is not investment advice.
Oriole Resources share price.
Oriole Resources shares exploded 27.37% higher to trade at 1.14p having risen from Friday’s closing price of 0.895p.