Oklo Resources (ASX: OKU, Share Price: $0.27, Market Cap: $60m) continues to enjoy significant and sustained success with respect to its gold exploration activities in western and southern Mali. Oklo maintains a portfolio of seven strategically-located projects, encompassing a total of 1,389 sq km. Ongoing results from air-core, RC and diamond drilling have returned robust, high-grade mineralisation.
Oklo’s share price has surged by up to 55% this week following the release of further exciting assay results from infill auger drilling at its Seko discovery. The latest work confirms five extensive, coherent gold anomalies separately measuring up to 2km in length and boasting gold grades up to 4.26g/t from surface.
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Market Significance
Oklo’s share price has surged from a 12-month low of $0.078 in March 2016 to a high of $0.31 this week. The primary catalyst remains strong market interest in the company’s aggressive drilling programs related to evaluation of the Diabarou prospect’s open-pit resource potential (with the ultimate aim of a maiden JORC resource), along with evaluation of exciting nearby regional targets like Seko – where at least five separate gold anomalies have been identified that host gold mineralization from surface and have a combined strike length of around 6km. Interest is sky-high in the follow-up drill program underway.
Announcement Detail – Dandoko Project Update
Oklo Resources has today provided an encouraging update with respect to ongoing auger and air-core drilling campaigns at its Dandoko Project in western Mali. Dandoko is strategically located within the Kenieba Inlier of western Mali – lying within 30km to the east of B2Gold’s 5.15Moz Fekola Project and 50km to the south-southeast of Randgold’s 12.5Moz Loulo Mine.
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This follows on from our most recent coverage on 7th March, where we provided a comprehensive overview of drilling work on the Seko prospect. Today’s release comprises the latest batch of assay results received from 25-metre-spaced infill auger holes drilled along the initial 400-metre reconnaissance lines that unearthed the Seko prospect area, and along 200-metre infill lines.
The auger geochemical program has been designed to improve the geological and geochemical understanding of the prospective target areas within the projects, by cheaply and efficiently penetrating below the extensive tracts of lateritic and transported cover.
Assay results received to date have successfully confirmed five extensive and coherent gold anomalies at Seko, with numerous intersections greater than 1g/t gold including:
- 21 metres at 1.59g/t gold from surface – including 12 metres at 2.40g/t gold from 9 metres depth and 4 metres at 3.74g/t gold from 17 metres (ending in mineralisation)
- metres at 2.4g/t gold from surface, 5 metres at 3.88g/t gold from 8 metres and 6 metres at 2.8g/t gold from 13 metres
Technical Significance
Two of the recent auger holes penetrated to depths of up to 21 metres (twice the average depth of the reconnaissance geochemical drilling) and both returned significant bedrock mineralisation. What’s also significant is that the Seko gold anomalies are up to 2km in length and have returned individual bedrock sample grades from shallow auger drilling of up to 4.26g/t gold.
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We should also reflect upon the previously announced assay results (from last week) that also confirmed the robustness of the previously reported Seko gold anomalies and which also delineated a new gold trend at Seko West over a 1.6km length, with grades of up to 1.6g/t gold.
Infill auger drilling results on neighbouring anomalies within 2.5km of Seko have also outlined further coherent zones of strong gold anomalism of over 800 metres in length at Dabia, Dabia West and Seko South.
Meanwhile the graphic below of the broader Seko area within the Dandoko project is important, because it highlights the anomalies to the south and to the north, which lie outside of the area of focus of the previous graphic, Figure 1.
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The infill auger results confirm the coherent nature of the strong gold anomalies at Seko and also provide support for Oklo’s interpretation of a strong north-northeast trending gold-anomalous corridor, extending over 12km from Selingouma in the south to Dabia in the north. This trend can be clearly visualised from the regional graphic below.
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Summary
We initiated coverage of Oklo Resources around $0.08 during November 2015. The company represents an honest and straightforward exploration story. Assay results received so far from Dandoko have successfully outlined new and encouraging zones of strong gold anomalism, most notably at the Seko area, which are interpreted to be related to prospective northeast-trending, regional-scale structures.
