Shares for Oklo Resources Ltd [ASX:OKU] are up close to 22% for the week, increasing from $0.16 on Monday and closing at $0.205 yesterday. But at time of writing, the Oklo share price has shed close to 5% of their gains and are now trading at $0.195.
Oklo Resources is an ASX-listed resources company. Their focus is 11 gold projects in Mali, Africa that cover an area of approximately 1,400 sqm.
Why the Oklo share price is up this week
Yesterday, the company announced the results of their drilling program over the SK1 North at Seko in the Dandoko project.
The Dandoko Project covers 134 km squared and is located in the Kenieba Inlier of West Mali, about 30 km west from B2Gold’s 7.21Moz Fekola gold project, and 50 km to the north-northwest from Rangold’s 12.5Moz Loulo Gold Mine.
According to the company, the results from 28 reverse circulation holes and a diamond (DD) hole on the SK1 North discovery at Seko turned the following results:
38m at 5.65 grams per tonne gold from 159m, including 10m at 19.22 g/t gold from 165m, including 6 m at 30.94 g/t of gold from 168m, and 1 meter at 102.37 g/t gold from 172 m.
Another significant intersection is 32 meters at 10.57 g/t gold from 52m including 10m at 30.96g/t gold from 58m and 26m at 7.54 g/t gold from 70m including 8m at 14.44g/t gold from 84m.
Oklo’s Managing Director Simon Taylor had this to say on the announcement:
‘With SK1 North emerging as game-changer for Oklo, all efforts are currently being made to fast track its evaluation prior to finalising our maiden MRE. The step-out drilling has now confirmed the strike length over 500m, with the deeper diamond drilling continuing to extend the zone at depth. We are particularly delighted with the exceptional results returned from Section D in the north, including 32m at 10.57g/t gold and 26m at 7.54g/t gold, with several of these holes ending in mineralisation.[…]
‘We look forward to providing further updates on our progress at SK1 North in the weeks ahead, which so far remains unaffected by the COVID-19 pandemic.’
What could happen next for OKU?
Oklo isn’t the only gold miner that’s seeing a fall in their share price today.
In fact, several of our Aussie miners are trading lower today, Northern Star Resources Ltd [ASX:NST] had a 2.75% fall as well as St Barbara Ltd [ASX:SBM], with a 1.41% decrease.
The main reason for the decline is a fall in gold prices on the news that the Central Bank of Russia will stop buying gold from 1 April. Central banks around the world have been increasing their gold purchases in recent years, with the Central Bank of Russia turning out to be one of the main buyers.
While the Russian central bank is ending their demand for gold at this moment, there are concerns that gold supply could take a hit from COVID-19.
Some miners in countries like South Africa and Canada have had to close their mines as the countries went into lockdown.
So far though, Oklo reports their operations have been unaffected by the outbreak.
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