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Iamgold secures 51% stake in Oriole’s Senala projejct

18th May 2022

By: Darren Parker

Creamer Media Contributing Editor Online

     

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Aim-listed exploration company Oriole Resources has announced that its joint venture (JV) partner Iamgold has met the requirements for earning 51% ownership in the Senala gold project, in Senegal.

In February, Iamgold notified Oriole that it had duly exercised the first option outlined in an option agreement signed in February 2018 by incurring expenditures of more than $4-million within the first four years.

Following a review of that expenditure, Oriole has confirmed that Iamgold has met its first option commitment.

Having now committed to the second option period, as outlined in the agreement, Iamgold will have to spend a further $4-million on exploration by February 28, 2024, to earn an additional 19% interest in Senala for an aggregate 70% interest in total.

“We are very pleased that Iamgold has continued its investment at Senala. The company’s confidence in the prospectivity of the Faré area, underpinned by the excellent 2021 drilling results, matches our own belief that there is significant potential for the development of a standalone target,” Oriole CEO Tim Livesey said in a May 18 update to shareholders.

Prior to the first option exercise process being completed, Oriole held an 85% net attributable interest in the Senala licence through its JV company Stratex-Energy and Mining Corporation (EMC), while JV partner EMC holds the remaining 15% interest.

Oriole said discussions were under way between Iamgold and EMC regarding the most appropriate method for the change in the beneficial interest in the project to be effected and the corporate structure that is to be established, as well as the resultant dilutionary impact on Oriole and EMC.

“There are a few administrative steps required to complete the formalisation of Iamgold’s 51% ownership, but we support its decision to continue the exploration programme at pace while we finalise the structure,” Oriole noted. 

EXPLORATION
Meanwhile, Iamgold has proceeded with its year-five exploration programme at Senala. The programme is focussed predominantly on the Faré prospect, where the company had previously reported best intersections, including 70 m grading 1.46 g/t gold and 35 m grading 3.61 g/t gold.

Moreover, Iamgold has reported a maiden Joint Ore Reserves Committee-compliant resource and exploration target for the Faré South anomaly.

The year five exploration programme will initially comprise a planned 9 600 m of auger drilling, with two samples being collected per hole. The holes will be drilled to an average depth of 8 m to assess the subsurface geology and to identify potential extensions to the existing mineralisation.

Drilling will predominantly focus on testing the strike extension – southwest and northeast – of the main 6-km-long structure at Faré and a grid has also been planned to test a previously identified gold-in-soil-sampling anomaly about 3 km to the east of Faré.

The southwest and northeast extension of the system will be sampled using a 400 m by 50 m grid, moving to a 400 m by 100 m spacing further to the north outside of the currently defined limits of Faré and over the eastern anomaly.

The budget for the programme is $1.5-million and is expected to be completed by the end of May.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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