Awalé Resources stock soars on 45.7 g/t gold find

This intersection was drilled at the Charger target. which along with Sceptre East target has become the company’s main focus of exploration aimed at discovering the first major iron oxide copper gold (IOCG) deposit in West Africa.

Andrew Chubb, CEO of Awalé Resources, called this drill hole “absolutely spectacular”, adding, “I have been looking at gold projects for the last 20 years and have never seen anything like this.”

Located in the northwest Denguèlé region, close to the borders of Mali and Guinea, the Odienné project comprises seven permits that together cover 2,462 km2. Currently, two of the permits – Odienné East’ and Sienso  – have been granted.

In 2017, Awalé initiated its involvement in the project by acquiring an initial two permits from Aforo Resources – an Australian company – in partnership with their local associate – ANGET – which still retains a 10% interest.

Following its acquisition, the company embarked on a systematic exploration campaign that incorporated legacy data from Randgold Resources, which conducted a first-pass exploration geochemistry of the property in the 1990s. Subsequent drilling on identified targets led to the discovery of high-grade gold at Empire Main.

The Charger target was later drilled with a similar mineralization model, and it delivered multiple high-grade significant intercepts such as 32 metres at 3.0 g/t gold from 74 metres downhole, including 4 metres at 12.4 g/t gold from 78 metres downhole.

Four holes for a total of 699 metres were completed at Charger during the latest drilling phase, with the 45.7 g/t intercept being the only one to encounter significant mineralization. The mineralization, according to the company, is consistently high grade throughout the reported interval.

Looking ahead, chief executive Chubb said the company will restart drilling in April, representing the first phase of the 25,000 metres being planned for the year.

“This drilling will progress the Charger, BBM and Sceptre discoveries and will scout drill some prospective pipeline targets. Confidence is growing that Odienné has the potential to be a world-class mine camp in Cote d’Ivoire,” he added.

The project is currently being developed as an earn-in joint venture signed with Newmont in July 2022. Under the agreement, Newmont has the opportunity to earn up to 65% ownership of the two permits by spending a total of $15 million on exploration, and has an option to purchase the 10% held by ANGET.

Shares of Awalé Resources more than doubled by midday Monday, trading at C$0.85 apiece as of 1:40 p.m. ET. Earlier, the stock hit a 52-week peak of C$1.10. Awalé’s market capitalization stood at C$53.3 million ($39.2m).