Monday 18 March 2024

High Grade Gold Intercepts Should Send ARIC Flying

Awalé Resources Limited (ARIC.V) rose 42% today on outstanding drill results at its Odienné Project Joint Venture with Newmont Corporation (NEM) in the Ivory Coast. With these successful drill results and NEM's interest in the project and investment in ARIC, we think this stock will go on a prolonged run. Especially considering the recent increase in the price of gold. We are up to 1,016 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 122 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

From the news release:

Awalé Hits Multiple Shallow High-Grade Intercepts, Including 2.4 g/t AuEq over 75 Meters at the Odienné Project

NewsfileMar 18, 2024 8:00 AM EDT

HIGHLIGHTS:

  • 75m @ 2.4 g/t gold equivalent (Au Eq) from 242m downhole* in OEDD-74
  • 44m @ 2.5 g/t Au Eq from 131m downhole* in OEDD-65
  • 40m @ 1.9 g/t Au Eq from 194m downhole* in OEDD-76
  • 39m @ 1.6 g/t Au Eq from 60m downhole* in OEDD-64
  • Assay results from the Charger target are expected soon
  • A follow-up drill program is scheduled to begin in April

Vancouver, British Columbia--(Newsfile Corp. - March 18, 2024) - Awalé Resources Limited. (TSXV: ARIC) (the "Company" or "Awalé") is delighted to report significant assay results at the Odienné Project. The BBM Zone is a grassroots discovery announced in Awale's January 11, 2024 news release. These latest holes followed up on this promising new discovery, and the Company expects to restart drilling in April. These multiple, shallow, broad, high-grade intercepts demonstrate the BBM zone's excellent continuity and scale potential.

All holes were mineralized and intercepted target geology. Mineralization remains open in all directions.

Andrew Chubb, CEO of Awale Resources, commented today:

"We are delighted with these assays from the follow-up program at the BBM target. The mineralization is robust and we have now confirmed plunging high grade mineralization over 500m of strike, which remains open in all directions. The consistently high-grade gold mineralization encountered in multiple drill holes underscores the prospectivity of our exploration area and highlights the substantial value it holds for our Company and stakeholders."

The gold and copper mineralization and alteration are controlled by a shear zone that follows an intrusive/sedimentary contact. Drilling now covers 2 km of strike along this shear zone, which sits within a high tenor, and open 8km long geochemical gold in termitaria trend. This drilling has been completed on 8 sections with a minimum spacing of 150 m between sections and up to 500m step-outs to the SE and NW (Figure 1). All holes have intercepted mineralization (Figure 2 & 3 cross sections and Figure 4-long section). All assay results from 14 holes for 2537 m drilled at BBM have been returned.

LINK TO BBM's OEDD-74 Drill Core Photos

With an established robust geologic framework, the Company can progress with a targeted drilling program to scope size potential, geological and grade continuity of the mineralization as well as test for new parallel shoots along the 8km of open strike.

A full table of significant intercepts for the program is given in Table 1 below.

 

Cannot view this image? Visit: https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_001.jpg

Figure 1: BBM Location with drill area zoom on the right. Map to left shows the >8km of strike potential between the BBM and Lando targets.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_001full.jpg

Cannot view this image? Visit: https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_002.jpg

Figure 2: Drill section looking NW through A-A' in figure 1. Red hatch shown mineralization zone with >50m true width.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_002full.jpg

Cannot view this image? Visit: https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_003.jpg

Figure 3: Cross Section B-B' through the Discovery line at BBM.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_003full.jpg

Cannot view this image? Visit: https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_004.jpg

Figure 4: Gram Metre Equivalent Long Section L-L'. Approximately 500m strike of high grade mineralization in initial drilling.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10016/202083_6756dbe48452cb3b_004full.jpg

Table 1: List of significant values for all drill holes at BBM

HoleFromToWidthAuEq g/tAu g/tCu_%Mo_ppmAg_ppmEASTNORTHRLAziDipHole DepthAu_gmAuEq_gm
OEDD005959103441.71.20.242300.96560991047971454.836-51179.25375
Including6887192.51.90.264111





3648
Including959943.21.90.892183.3





813
OEDD006049.6566.0016.350.60.40.13850.46563701047683464.945-52122610
OEDD00612578.153.10.90.50.27161.56556301048206455.225-52155.152748
Including37.6539.92.251.61.60.0360.1





44
Including53.6354.651.023.120.75815.5





23
and116117.11.11.71.60.0420.7





22
OEDD0062130.9181.450.51.30.90.181550.8656075104793845437-60188.334566
Including157.7160.552.852.31.60.48781.7





57
Including163.717410.33.32.60.323021.5





2734
OEDD0063175179.34.31.60.70.64301.2655607104814945635-55257.337
OEDD00632172462910.70.21530.8





2029
Including221.642308.362.31.50.48632





1319
OEDD0064475031.51.10.27531.5655979104806045135-55134.4335
OEDD00646099391.61.10.302260.8





4163
OEDD00646082222.21.70.251840.8





3748
Including727426.55.70.403551.7





1113
OEDD0065131175442.51.40.604132.56559491048016450.235-55209.5162110
Including134140653.90.643712.5





2330
Including14615593.41.90.5510632





1731
OEDD00661825.57.51.50.70.58200.86555121048297457.335-5592.2511
Including20.521.512.92.10.50900.9





23
and757612.42.40.0130.5





22
OEDD0067147.00176.0029.000.60.30.11142.10.56563251047619464.535-55206.2916
OEDD006896192960.7470.3450.00041.81.4006554681048237458.835-55239.33372

85.0093.008.000.40.20.10160.4





23

96.00142.0046.000.70.30.24621.0





1331
HoleFromToWidthAuEq g/tAu g/tCu_%Mo_ppmAg_ppmEASTNORTHRLAziDipHole DepthAu_gmAuEq_gm

153.00192.0039.001.00.50.35232.1





1939
OEDD006955.0087.0032.000.40.20.05153.90.36566731047344461.635-55113.3814
OEDD0070*91100100.140.120.1020.16552941048466452.635-55110.2

OEDD0071108.00115.007.000.50.50.0450.16566401047306460.935-55179.334
OEDD0072110.00112.002.000.380.270.07143.58.56576391045558465.1




OEDD00731956.537.51.80.50.773441.7





1968
Including5256451.42.189503.4





620
OEDD0074242317752.41.80.342671.26559111047965448.833-58338.21132181
Including242294522.51.70.363071.3





88130
Including27227316.35.60.461932.3





66
Including28128219.480.676442.8





89
Including3003171732.40.352351.2





4151
Including30530616.75.50.653812.8





67
Including30830916.35.20.692322.4





56
OEDD0075*7286140.330.10.15230.66558541048203448215-55152.3

OEDD007639.2541.001.752.51.90.43323.56557661048079449.835-55254.2034
and194234401.91.50.211181.0





6277
Including219231124.74.00.363221.7





4857

 

The Awalé-Newmont JV - 'Odienné Project JV'

The Odienné Project JV covers one permit and one application within the greater Odienné Gold-Copper Project, the greater project consists of a further 4 applications and on option agreement which in the Northwest of Côte d'Ivoire, and is subject to an earn-in agreement with Newmont Ventures Limited ("Newmont"); see company news release dated May 31 2022 through which Newmont retains the option to earn-in to a minimum of 65% interest, from Awalé, in the Odienné Project JV in return for USD 15 million of exploration expenditures. Newmont is funding the exploration program and Awalé is managing the Odienné Project JV in the initial three-year phase.

ARIC has 63 million shares outstanding, leading to a $16 million market cap. Newmont has a 15% equity stake in the company and currently owns 51% of the JV upon $5 million in exploration in 2023 and 2024. An additional $10 million in exploration expenses is to be made by Newmont to earn another 14%. So with 35% ownership of the JV, ARIC is at little risk of further dilution in the near future. We expect this stock to be north of $0.50 in the near to mid-term. 

Disclosure: We are long ARIC.V