Oklo primed for success

Oklo Resources’ (AU:OKU) discovery of a 12km long gold corridor at its Dandoko project in Mali has set the company up for success, with strong backing and an experienced discovery team in a multi-million ounce gold mining region.

Oklo primed for success

If the nimble, aggressive explorer was looking to replicate a previous ASX-listed company’s success in Mali, it would be that of Papillon Resources, which discovered the 5.15 million ounce Fekola gold deposit before it merged with B2Gold in a deal worth about US$550 million.

“We’re a very active, aggressive explorer with plenty of cash and the ground that we’ve got is elephant country – and it’s under-explored,” managing director and CEO Simon Taylor explains.

“We are exploring a province that already hosts numerous multi-million ounce mines and we’re hoping to replicate finding the next big multi-million ounce project.

“That’s our goal, to create shareholder wealth through discovery.”

Dandoko lies 30km east of the Fekola deposit and contains Oklo’s flagship Seko prospect, its discovery of five mineralised gold trends which have yielded significant widths of bedrock gold mineralisation from the first drill holes, with promising drilling results including 24m at 2.02g/t gold from 12m.

More recently, drilling has identified a primary source of mineralisation at depth and the company is now planning its next stage of exploration as it moves towards establishing a maiden resource.

Taylor said the Seko discovery had attracted a supportive and strong share register and the company was fully-funded for further exploration with A$13.5 million in hand at the start of September.


He said the company was in the right area and had a fantastic team with an enviable discovery track record.

He said the in-country team was led by director Dr Madani Diallo, a geochemist with an outstanding track record as a team member in multiple discoveries including the 13Moz Sadiola and 7.9Moz Syama deposits.

Taylor said Diallo had a strong relationship with the Mali government and had been awarded a “knighthood” as a pioneer to the country’s gold industry.

Oklo’s principal geologist Bathily Mamadou was also awarded a “knighthood” for his services to Mali’s mining industry and has more than 30 years’ experience including working at BHP and Randgold in Mali.

Taylor also pointed to the relevant experience of Oklo’s exploration general manager Andrew Boyd, who was previously the general manager geoscience for Papillon.

The company has been backed by major institutional investors, with the BlackRock Group and 1832 Asset Management showing support.

Interestingly, fellow ASX-listed Resolute Mining (AU:RSG), which operates the Syama gold mine in Mali, has also been taking a stake in the explorer and now holds more than 5%.

“Resolute knows Mali, they know our ground and they have bought on market since we made the discovery at Seko,” Taylor said.


“Our top 20 holds about 67% so we’ve got a good capital structure and we’re tightly held now with several institutions coming on the register.”

He said Oklo had confidence in Seko’s potential due to the large and consistent gold anomalies, wide zones of gold mineralisation and limited stratigraphic diamond drilling confirming a primary source to the oxide gold mineralisation at depth.

“All five Seko trends reported bedrock gold mineralisation from first pass AC drilling,” he said.

“The anomalies are up to 2km long and they have the potential to host a very large deposit.”

He said the company was particularly pleased with Anomaly 3, where recent drilling intersected a significant zone of oxide, transitional and primary gold mineralisation, including an intercept of 73m at 1.02g/t gold from 94m.

“We got big zone of mineralisation of about 75m and about half of that was in fresh rock … which is telling us we’ve got the primary source to what’s in the in the oxide zone which is fantastic,” Taylor said.

“Our average hole depth at Seko is 56m so this is very early days and we’re already getting good zones in the oxides so this is a great start.”

The initial aircore programme has wrapped up and final assay results were received earlier this month, which extended Anomaly 1 by 200m to the south and increased its total strike length to at least 1,200m, with a highlight including 16m at 1.25g/t gold from 11m.

At Anomaly 2, the final two holes increased the width of the mineralised envelope to 180m and included 5m at 2.76g/t from 31m adjoining the previously reported intersections which included 40m at 1.55g/t gold from surface to end of hole and 28m at 3.38g/t gold.


Taylor said the project area had excellent infrastructure, was linked by a sealed road to Bamako, had good access to water and power and was within 40km of other major gold mines including Fekola.

“Mali is Africa’s third biggest gold producer, it’s got a very good mining code and there’s lots of infrastructure and drill rigs available,” he said.

“It’s a great place to explore.”

He likened part of its geology to Western Australia but said it had not seen the same amount of exploration.

“We’re finding things from the surface that have just never been looked at,” he said.

He anticipated drilling through the wet season next year and said the current lull in drilling activity meant it was a good time for investors to look at the stock, which has risen more than 120% year-to-date.

“I think the next catalyst is to announce the drilling programme for the next field season and actually getting back out on site,” Taylor said.

“We’re looking at putting together the programme at the moment.

“We’re fully-funded with lots of drilling to come, we have supportive shareholders so we’re in a pretty good space.”

The main focus of upcoming exploration will be infill and resource definition drilling at Seko and first pass aircore testing of other targets extending from Seko within the 12km Dandoko gold corridor.

Taylor said Oklo would also conduct a reconnaissance auger programme on other targets as it had been so successful at delineating Seko.

He said the three things that would redefine the company’s value-creation path over the next 12 months would be continuing to make further gold discoveries along the Dandoko trend, advancing towards resource definition stage at Seko and announcing a maiden openpit resource.

He said Oklo held numerous advantages as it entered the next stage of exploration, namely being nimble, cashed up, on good ground and with a first-class team that had a successful track record.

“(It’s a) solid foundation for discovery and growth,” he said.

Oklo Resources – at a glance


HEAD OFFICE: Level 5, 56 Pitt St, Sydney NSW 2000

PH:  +61 2 8319 9233



DIRECTORS: Michael Fotios, Simon Taylor, Dr Madani Diallo

QUOTED SHARES ON ISSUE: 301.866 million

MARKET CAP (at 5 September): A$71 million

MAJOR SHAREHOLDERS: BlackRock Group 14.82%; 1832 Asset Management 8.08%; Hawkstone Group 6.53%; Resolute Mining Ltd 5.48%; Ack Pty Ltd 5.47%

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