Oriole Resources plc (LON:ORR) Executive Director Claire Bay caught up with DirectorsTalk to discuss the latest drilling results from the MB01 North prospect, highlighting resource growth and multi-deposit potential.
Q1: MB01 North drilling programme results were published, and they include the best intersection to date from that target with 56.2 metres at almost 1 gram per tonne of gold, and that’s at near surface. What do these results tell you about the scale and continuity of the mineralisation system at Mbe?
A1: We completed the maiden drilling programme at MB01 North last month for just under 3000 metres and 15 holes and today’s announcement has reported results for the final four holes in that programme. The 56.2 metres at 1 gram per tonne intersection you’ve just mentioned was from hole MBDD039. It’s the widest intersection we’ve reported from that programme, and it included 14.5 metres at just over 2 grams per tonne gold.
Importantly, it isn’t the only hole that’s hit mineralisation from the programme at this prospect, with another standout intersection being almost 22 metres at just over 3 grams per tonne in hole MBDD026, which is located approximately 100 metres to the north. We’ve also had higher grade hits from the programme, including one metre at 28.6 grams per tonne gold.
Just as we saw at the MB01 South deposit located 700 metres to the southwest, the drilling results have mirrored very well what we’ve achieved from the soil and trenching sampling campaigns previously. We’ve now confirmed that the system at MB01 North extends over a length of at least 700 metres, a width of at least 300 metres and to a vertical depth from surface of at least 200 metres. I’m saying at least because we haven’t drilled as deep here as we have at the southern prospect and as at the southern prospect, the system remains open in all directions.
Q2: Now, with the Maiden JORC resource for MB01 North expected in the second quarter of this year, how significant could this target be in adding to the existing 870,000 ounce resource MB01 South?
A2: So, we already have a JORC exploration target range of 15 to 20 million tonnes at 0.77 to 0.94 grams per tonne gold, which equates to 370 to 605,000 ounces of contained gold. This target was conceptual based on information we had at the time, being the earlier trenching programme. The drilling programme that we’ve just completed was designed to try and maximise the conversion of that target into JORC-inferred ounces. Any ounces we define will be in addition to the existing 870,000 ounce resource that you’ve just mentioned for the MB01 South deposit.
Based on the results we’ve reported to date, I expect a good level of conversion, hopefully at a better average grade, as we have had generally higher grades at the northern target, and anticipate that the global resources for Mbe will be well over a million ounces of gold.
The data has now been packaged up and sent to our external consultant, Forge International, who is computing QAQC checks ahead of starting the estimation in earnest. As you mentioned, the resource is scheduled for announcement in Q2.
Q3: The MB01 North system, as you mentioned earlier, extends over roughly 700 metres and remains open in all directions. Does that reinforce your view of Mbe as a potentially larger multi-deposit gold project?
A3: Absolutely. Based on what I’ve just described, there’s little doubt that we’ll soon be reporting an open pittable deposit for MB01 North, making it the second deposit that we will have reported for the Mbe licence as a whole. Let’s not forget we have three further targets on that licence that we’re yet to drill test. Importantly, all of the targets are close to each other, so it could be treated via a central processing facility if this moves forward to become a mine.
Q4: Just looking ahead, what are the key milestones investors should be watching out for over the next six months from Oriole Resources as you continue to expand the resource base at Mbe?
A4: In the immediate term, our team and that of BCM, our partner at Mbe, are preparing to mobilise for a fully funded step-up drilling programme at MB01 South, which has been planned for 2500 metres in 10 holes. Like at the MB01 North prospect, the system is still open in all directions, and so this programme will attempt to test laterally the extent of the system, as well as, we hope, add resource ounces. As such, a further JORC update will follow that programme later in the year. The programme design will be reported when we announce its commencement in a few weeks’ time.
As many of the listeners will know, Mbe is part of a much wider licence package known as the Eastern CLP, where we have already defined a number of multi-kilometre gold anomalies that have the potential to become the next Mbe. So, in addition to the drilling programme, our teams are very busy completing soil sampling, rock chip sampling, and mapping over a number of those licences.
Investors can expect to get results from those programmes over the coming months as well, that will hopefully help to reinforce the district scale potential of our land package in Cameroon.
