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.

 

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

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

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

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

Hole	From	To	Width	AuEq g/t	Au g/t	Cu_%	Mo_ppm	Ag_ppm	EAST	NORTH	RL	Azi	Dip	Hole Depth	Au_gm	AuEq_gm
OEDD0059	59	103	44	1.7	1.2	0.24	230	0.9	656099	1047971	454.8	36	-51	179.2	53	75
Including	68	87	19	2.5	1.9	0.26	411	1							36	48
Including	95	99	4	3.2	1.9	0.89	218	3.3							8	13
OEDD0060	49.65	66.00	16.35	0.6	0.4	0.13	85	0.4	656370	1047683	464.9	45	-52	122	6	10
OEDD0061	25	78.1	53.1	0.9	0.5	0.27	16	1.5	655630	1048206	455.2	25	-52	155.15	27	48
Including	37.65	39.9	2.25	1.6	1.6	0.03	6	0.1							4	4
Including	53.63	54.65	1.02	3.1	2	0.75	81	5.5							2	3
and	116	117.1	1.1	1.7	1.6	0.04	2	0.7							2	2
OEDD0062	130.9	181.4	50.5	1.3	0.9	0.18	155	0.8	656075	1047938	454	37	-60	188.33	45	66
Including	157.7	160.55	2.85	2.3	1.6	0.48	78	1.7							5	7
Including	163.7	174	10.3	3.3	2.6	0.32	302	1.5							27	34
OEDD0063	175	179.3	4.3	1.6	0.7	0.64	30	1.2	655607	1048149	456	35	-55	257.3	3	7
OEDD0063	217	246	29	1	0.7	0.21	53	0.8							20	29
Including	221.64	230	8.36	2.3	1.5	0.48	63	2							13	19
OEDD0064	47	50	3	1.5	1.1	0.27	53	1.5	655979	1048060	451	35	-55	134.43	3	5
OEDD0064	60	99	39	1.6	1.1	0.30	226	0.8							41	63
OEDD0064	60	82	22	2.2	1.7	0.25	184	0.8							37	48
Including	72	74	2	6.5	5.7	0.40	355	1.7							11	13
OEDD0065	131	175	44	2.5	1.4	0.60	413	2.5	655949	1048016	450.2	35	-55	209.51	62	110
Including	134	140	6	5	3.9	0.64	371	2.5							23	30
Including	146	155	9	3.4	1.9	0.55	1063	2							17	31
OEDD0066	18	25.5	7.5	1.5	0.7	0.58	20	0.8	655512	1048297	457.3	35	-55	92.2	5	11
Including	20.5	21.5	1	2.9	2.1	0.50	90	0.9							2	3
and	75	76	1	2.4	2.4	0.01	3	0.5							2	2
OEDD0067	147.00	176.00	29.00	0.6	0.3	0.11	142.1	0.5	656325	1047619	464.5	35	-55	206.2	9	16
OEDD0068	96	192	96	0.747	0.345	0.000	41.8	1.400	655468	1048237	458.8	35	-55	239.3	33	72
	85.00	93.00	8.00	0.4	0.2	0.10	16	0.4							2	3
	96.00	142.00	46.00	0.7	0.3	0.24	62	1.0							13	31
Hole	From	To	Width	AuEq g/t	Au g/t	Cu_%	Mo_ppm	Ag_ppm	EAST	NORTH	RL	Azi	Dip	Hole Depth	Au_gm	AuEq_gm
	153.00	192.00	39.00	1.0	0.5	0.35	23	2.1							19	39
OEDD0069	55.00	87.00	32.00	0.4	0.2	0.05	153.9	0.3	656673	1047344	461.6	35	-55	113.3	8	14
OEDD0070*	91	100	10	0.14	0.12	0.10	2	0.1	655294	1048466	452.6	35	-55	110.2
OEDD0071	108.00	115.00	7.00	0.5	0.5	0.0	45	0.1	656640	1047306	460.9	35	-55	179.3	3	4
OEDD0072	110.00	112.00	2.00	0.38	0.27	0.07	143.5	8.5	657639	1045558	465.1
OEDD0073	19	56.5	37.5	1.8	0.5	0.77	344	1.7							19	68
Including	52	56	4	5	1.4	2.18	950	3.4							6	20
OEDD0074	242	317	75	2.4	1.8	0.34	267	1.2	655911	1047965	448.8	33	-58	338.21	132	181
Including	242	294	52	2.5	1.7	0.36	307	1.3							88	130
Including	272	273	1	6.3	5.6	0.46	193	2.3							6	6
Including	281	282	1	9.4	8	0.67	644	2.8							8	9
Including	300	317	17	3	2.4	0.35	235	1.2							41	51
Including	305	306	1	6.7	5.5	0.65	381	2.8							6	7
Including	308	309	1	6.3	5.2	0.69	232	2.4							5	6
OEDD0075*	72	86	14	0.33	0.1	0.15	23	0.6	655854	1048203	448	215	-55	152.3
OEDD0076	39.25	41.00	1.75	2.5	1.9	0.43	32	3.5	655766	1048079	449.8	35	-55	254.20	3	4
and	194	234	40	1.9	1.5	0.21	118	1.0							62	77
Including	219	231	12	4.7	4.0	0.36	322	1.7							48	57

 

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