Oriole Resources PLC (AIM:ORR) shares soared on Tuesday with the release of the explorer's maiden JORC-compliant Mineral Resource Estimate for the MB01-S zone at its 90%-owned Mbe gold project in Cameroon.
Independent consultant Forge International has estimated an Inferred resource of 24.8 million tonnes, grading 1.09g/t, for 870,000 ounces of contained gold.
The estimate, using a US$3,200/oz gold price and 0.40g/t cut-off, exceeds the upper range of Oriole’s prior exploration target.
Meanwhile, Oriole has also defined a nearby exploration target (the MB01-N zone), around 700 metres north-east of MB01-S, which is estimated to host some 370,000 to 605,000 ounces of contained gold, and, remains untested by drilling.
Chief executive Martin Rosser called it "an outstanding result" and highlighted that in less than a year, MB01-S has gone from being a highly prospective target to one with a maiden MRE of almost 900,000oz of contained gold.
MB01-S is still open in all directions, he noted. And, the Oriole boss told investors that whilst it will focus on fully delineating the magnitude of the gold resources at Mbe, it will also begin to consider the potential for the resources to support a significant open pit gold mine.
"What we can emphatically say is that the Mbe discovery has amply demonstrated the potential for Cameroon to host significant size gold deposits," Rosser said.
"Oriole is in a tremendous position with its major exploration land holding to build on the results to date at Mbe and in the wider Eastern CLP licences.
"We have much to look forward to in the months ahead."