Awalé Resources stock soars on 32 metre hit of 45.7 grams gold

Awalé Resources (TSXV: ARIC) shares soared on Monday after the Newmont-backed explorer reported outstanding assay results of 45.7 grams gold per tonne over 32 metres from drilling on the Odienné project in Côte d’Ivoire.

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

Shares of Awalé Resources more than doubled by midday Monday, trading at 85¢ apiece in Toronto. Earlier, the stock hit a 52-week peak of $1.10. Awalé’s market capitalization stood at $53.3 million.

The highlight 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.

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 sq. km. Currently, two of the permits – Odienné East and Sienso – have been granted.

In 2017, Awalé acquired initial permits in the project from Australian company Aforo Resources, in partnership with its local associate, ANGET, which still retains a 10% interest.

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 by spending US$15 million on exploration. It has an option to purchase ANGET’s stake.

The company then 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 drilled later, delivering multiple high-grade intercepts such as 32 metres at 3 grams gold per tonne from 74 metres downhole, including 4 metres at 12.4 grams gold.

Four holes for a total of 699 metres were completed at Charger during the latest drilling phase, with the 45.7 grams gold 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, Awalé’s Chubb said the company will restart drilling in April, representing the first phase of the 25,000 metres 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.