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Gold Company, Oklo Resources Gets Immediate Success In Mali

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Oklo Resources (ASX: OKU, Share Price: $0.165, Market Cap: $40m) has enjoyed immediate success with respect to its gold exploration activities in western and southern Mali. The company has assembled a portfolio of seven strategically-located projects that encompass a total of 1,389 sq km. Results from initial air-core, RC and diamond drilling programs have returned spectacularly high-grade mineralisation.

Oklo has advised that that the 2016/17 exploration field season has commenced, with auger drilling at its Dandoko Project in western Mali. Over the coming months a series of advanced and early-stage targets will be tested by more than 47,000m of drilling at its Dandoko and adjoining Moussala projects.

Market Significance

Oklo’s share price surged from a recent low of $0.05 in January to a recent 12-month high of $0.25 in July, before retracing in line with a broader sector-wide consolidation in the gold space. The key driver of market interest remains the discovery of high-grade gold mineralization at its Dandoko Project. The recent phase of drilling prior to the wet season was designed to assess the Diabarou prospect’s open-pit resource potential, with the ultimate aim of an initial JORC-compliant resource. All of the evidence so far is highly encouraging and we keenly anticipate the results from fresh drilling work in the new field season.

Announcement Detail – Dandoko Project Update

Oklo Resources has announced the commencement of the 2016/17 exploration field season, with the commencement of auger drilling at its Dandoko project in western Mali.

The Dandoko project lies within the Kenieba Inlier and is located 30km to the east of B2Gold’s 5.15Moz Fekola Project and 50km to the south-southeast of Randgold’s 12.5Moz Loulo Mine.

Over the coming months, a series of advanced and early-stage targets will be drill-tested at both the Dandoko and adjoining Moussala projects. An initial 40,000-metre auger geochemical program will be completed at both projects – with three rigs currently operating at Dandoko and a fourth rig to be mobilised to Moussala, 15km west of Dandoko.

At Dandoko, initial auger drilling will concentrate on regional extensions to the encouraging gold discoveries at Diabarou and Disse, before stepping out to test other potential targets on the remainder of the project on a 400-metre x 100-metre spacing.

At Moussala, auger drilling will test a number of previously-defined geochemical and geological targets that remain untested by drilling, including areas where limited previous soil-sampling programs returned peak gold-in-soil results of up to 0.54g/t gold, also on a 400-metre x 100-metre spacing.

A program of approximately 7,000 metres of RC drilling is also planned to commence in late November as ground conditions permit, on top of the 40,000 metres of auger drilling, in order to further test the strike extension of the mineralisation at Diabarou and through the Disse areas.

With the cessation of the wet season, further drying and a reduction of water levels at river crossings, there will shortly be the opportunity for safe and efficient access for heavier RC drilling rigs and equipment to the Diabarou and Disse prospects during late November.

Technical Significance

A total program in excess of 47,000 metres has been approved, costing in the vicinity of $2.2 million, which will be fully funded from the company’s existing cash reserves of more than $9.5 million.

It is anticipated that by year end, the first round of these aggressive programs will have materially progressed the Diabarou and Disse prospects, as well as having provided enhanced geochemical coverage below the variable laterite cover to highlight any regional extensions to these prospects – along with and new areas for testing.

With results from these programs expected to be coming through from early December until late January, Oklo should be in a good position to continue its work programs through the remainder of the 2016/17 dry season, guided by ongoing results.


We initiated coverage of Oklo Resources around $0.08 during November 2015 – representing a current gain of 106%. The company in my view represents a fairly straightforward exploration story. It has utilized waning interest in West African gold projects over previous years to its advantage - allowing it to assemble a high-quality tenement portfolio in Mali, the continent’s third-largest gold producing nation.

Drilling at Dandoko has highlighted potential for extensive gold mineralised alteration systems, which hosts high-grade mineralization at relatively shallow depths. Importantly, the mineralisation is similar in style to many other large deposits found nearby in western Mali, boding well for Oklo as it attempts to outline a large, open-pittable gold deposit. There are numerous gold targets of varying maturity that will be systematically drill-tested over the coming 12 months. The company is well funded with current cash reserves of more than $9.5 million.

View More Articles By Gavin Wendt

After a decade as a broking resources analyst with Intersuisse, Gavin helped establish the Fat Prophets Mining Report during 2005, writing and producing the report until he established MineLife during late 2010. He writes about mining and energy companies via his MineLife reports.

Disclaimer: Gavin Wendt, who is a director of Mine Life Pty Ltd ACN 140 028 799, compiled this document. It does not constitute investment advice. In preparing this report, no account was taken of the investment objectives, financial situation and particular needs of any particular person. Before making an investment decision on the basis of this report, investors and prospective investors need to consider, with or without the assistance of a securities adviser, whether the information is appropriate in light of the particular investment needs, objectives and financial circumstances of the investor or the prospective investor. Although the information contained in this publication has been obtained from sources considered and believed to be both reliable and accurate, no responsibility is accepted for any opinion expressed or for any error or omission in that information.



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