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Oklo Resources Ltd set for strong news with gold drilling in West Africa

Published: 11:30 27 Oct 2016 AEDT

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Oklo has commenced the 2016-17 field season.

Oklo Resources Ltd (ASX:OKU) has commenced the 2016-17 field season with auger drilling at its Dandoko gold project in western Mali.

Over the coming months a series of advanced and early stage targets will be drill tested at Oklo’s Dandoko and adjoining Moussala projects.

A total program in excess of 47,000 metres has been approved and will be fully funded from the company cash reserves, which currently stand at over $9.5 million. 
Three rigs are currently operating at Dandoko and a fourth rig is being mobilised at Moussala.


Background

Oklo has eight gold projects covering 1,389 square kilometres in Mali.

The Dandoko and Moussala projects are located only 15 kilometres from each other within the prolific Kenieba Inlier of western Mali.

The Dandoko project is located 30 kilometres to the east of B2Gold Resources’ (formerly Papillon Resources) 5.15 million ounce Fekola project.

The project is also 50 kilometres to the south-southeast of Randgold’s 12.5 million ounce Loulo Mine, highlighting that Oklo is exploring in a well-endowed region.


Dandoko hosts the Diabarou and Disse prospects

Recent highlights at Diabarou included:

- 6 metres at 53.77 g/t gold from 36 metres; 3 metres at 110.30 g/t gold from 120 metres; and 28 metres at 3.90 g/t gold from 88 metres.

Diabarou's gold mineralisation is similar in style to many of the other large gold deposits found nearby within the Kenieba Inlier of western Mali.


Drill program details

An initial 40,000m auger geochemical program will be completed at Dandoko and Moussala.

At Dandoko, initial auger drilling will concentrate on regional extensions to the gold discoveries at Diabarou and Disse before stepping out to test other targets within Dandoko.

At Moussala, auger drilling will test a number of previously outlined geochemical and geological targets.

A 7,000m step out and resource definition RC drilling program at Disse and Diabarou
estimated to commence in late November.


Analysis

This large-scale drilling program at the Dandoko and Moussala projects will look to create value for Oklo by defining the Diabarou and Disse gold discoveries and targeting further discoveries.

With 47,000 metres of drilling approved, this will create continuous news flow for Oklo shareholders keeping them leveraged to exploration upside.

The company is well funded with cash reserves of $9.5 million and both drilling programs scheduled to be completed by the end of 2016 are budgeted to cost $2.2 million.

The aggressive drill program is planned to continue through the dry season into 2017 being guided by ongoing results.

Results from these initial programs are expected to be coming through from early December through to late January.

Oklo shares are trading up 210% year to date, currently priced at $0.155.

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