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Oklo Resources hits high-grade gold in Mali

New drilling to extend the artisanal workings at the Diabarou prospect of Oklo Resources' (ASX:OKU) Dandoko gold project in Mali has delivered encouraging initial results.

One significant intersection in the six-hole reverse circulation program marked 29 metres at 5.62g/t gold, including 8 metres at 12.58g/t gold, with the hole ending in mineralisation.

Drilling was also undertaken on a newly developed artisanal trend located about 100 metres to the north where high-grade results of up to 68.3g/t gold were recently reported from channel samples collected at the base of the artisanal mine workings.

The first holes drilled into this zone returned 7 metres at 1.54g/t gold in hole and 1 metre at 49.80g/t gold.

These results are interpreted as confirming the high grades previously recorded at the project and supporting the potential for an open pit operation.

Significantly, the gold mineralisation at Diabarou is not only associated with extensive quartz veining and visible gold, but also with a broader alteration zones similar to many of the other large gold deposits found nearby.

Important neighbouring gold properties in the Kenieba Inlier of western Mali include B2Gold Resources' (NYSE:BTO) 5.1 million ounce Fekola project (30 kilometres from Dandoko) and Randgold Resources' (LON:RRS) 12.5 million ounce Loulo mine (50 kilometres from Dandoko).

Analysis

These results represent a promising start to Oklo's 2016 field program by confirming Dandoko's potential for producing high grades and providing support for plans to develop an open pit.

Importantly, the gold mineralisation at Diabarou has proven to be related to a variety of styles of geology, indicating an association with the massive deposits already established in this prolific region.

The mineralisation remains open along strike and at depth.

Further drilling to firm up the geological controls of this zone of mineralisation as well as to define its extents represents potential for more price catalysts for Oklo.

Oklo remains well funded with over $3 million in cash and is expected to continue an aggressive campaign across its Mali portfolio.

Future newsflow from the company is expected to include a detailed interpretation of the recent drill results at Dandoko in the coming months, the reporting of drilling assays from the Socaf gold project in mid-February and the start of new drilling at the Yanfolila gold project later next month to follow up promising historical leads.

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