Big Picture – A Deep Dive Examination of Oriole Resources PLC
Oriole Resources PLC Snapshot
Oriole Resources is an AIM-quoted exploration company, focused on creating shareholder value through the development of quality exploration assets.
The principal activity of the Group is the exploration and development of gold and base metals in Africa and Europe.
STRATEGY AND VISION
The Company’s strategic intent is to maximise shareholder value, through quality exploration in well-known geological terranes throughout Africa (e.g. Birmian and Archean) and Europe (Tethyan). This includes our new projects in Cameroon, where we are earning up to a 90% interest in the Bibemi and Wapouzé projects, and our 85%-owned Dalafin project in Senegal, where IAMGOLD has the option to spend US$8m to acquire 70%. We have interests and royalties in several projects in Turkey and Africa and are actively seeking further exploration opportunities, particularly in West Africa, to consolidate our existing geographic footprint.
BIBEMI AND WAPOUZÉ
Bibemi and Wapouzé are early-stage gold exploration projects, covering highly prospective Neoproterozoic Pan-African greenstone belts in north-eastern Cameroon. Oriole has the option to earn a 90% interest by spending US$3.12m.
The Company’s interests in the projects are held 100% by local company BEIG3 through its wholly-owned subsidiary, RMC Cameroon SARL, formerly held in JV with Reservoir Minerals Corporation. The majority of work to date has been completed at the Bibemi licence.
Bibemi (202 km2 ) is held by BEIG3’s wholly-owned subsidiary Reservoir Minerals (BVI) Cameroon and has a renewal date of April 2019.
Surface exploration – predominantly stream sediment, soil, rock and trench sampling – on the Bibemi project to date has focused on the central Bakassi area of the licence where gold is predominantly hosted in a series of irregular quartz veins. Three parallel mineralised trends were identified on the licence by former operator Reservoir Minerals Inc., over a strike distance of c.20km. Historic best results from 7,744 trench samples included 14m @ 1.00g/t Au to 6.2m @ 8.05g/t Au (Reservoir announcement dated 18 November 2014).
Wapouzé (180 km2 ) is held by BEIG3’s wholly-owned subsidiary Reservoir Minerals (BVI) Cameroon and is currently pending renewal until 2020.
Located 20 km north of Bibemi, and in a similar geological setting, the main gold anomaly is located in the east of the licence. Reservoir Minerals conducted 1.5/ km2 stream sediment sampling between 2011 and 2015 and results (with 269 out of 573 samples analysed) included 14 samples >10ppb Au, 6 samples >25ppb Au and 3 samples >50ppb Au. The main anomalous structure follows the same orientation as at Bibemi and additional zones showing signs of mineralisation have been identified for follow-up.
BEIG3 OPTION AGREEMENT
Under the terms of the Option Agreement, the Company will earn an initial 51% of both Projects by funding US$1.56m of exploration over the next two years (First Option). Thereafter, Oriole can earn a further 39% for an additional U$1.56m exploration expenditure, or on the completion of a pre-feasibility study on at least one of the Projects, over the subsequent two years (Second Option). BEIG3 will retain a 10% free carried interest in both projects up to completion of the Second Option or the completion of a pre-feasibility study on at least one of the Projects.
Oriole and BEIG3 will form a JV company managed by a committee, comprising three representatives of Oriole and two representatives of BEIG3 following exercise of the First Option, that will hold and operate the Projects.
Oriole will manage the exploration programme and BEIG3 will provide operational and logistical support via a technical services agreement.
Following completion of a £1.15 m placing in June 2018, the work programme for the First Option is fully-funded. At Bibemi, mapping and rock-chip sampling is currently underway and will be followed by infill trenching later in the year to better define key gold anomalies. Following a full project evaluation, RC and diamond drilling will be completed to target key geochemical/geophysical anomalies and structural intersections ahead of resource drilling.
At Wapouzé, Oriole intends to conduct detailed mapping and reconnaissance soil and rock sampling and trenching in order to define areas of more concentrated gold anomalies which can subsequently be drilled, subject to ongoing positive results.
On both licences, the Company hopes to define areas of more concentrated gold anomalies for subsequent drilling.
Located in south-eastern Senegal, the 472.5 sq km Dalafin licence is positioned in the centre of the Birimian-age Kédougou-Kenieba gold belt that extends from eastern Senegal into western Mali and has already seen multiple major gold discoveries including Randgold Resources’ Massawa deposit (3.4 million oz Au) and Oromin Exploration’s Sabodala deposit (3 million oz Au) in Senegal, and Randgold’s Loulo (12 million oz Au) and Gounkoto projects (5.76 million oz Au) in Mali. IAMGOLD has the option to earn a 70% interest by spending US$8m.
The Company own 85% of Dalafin through its Senegal-registered joint-venture company Stratex EMC S.A., formed in partnership with private local company Energy & Mining Corporation S.A. (EMC) that holds the remaining 15%.
To date, four main geochemical targets, Faré, Baytilaye, Saroudia, and Madina Bafé, have been confirmed by a 33,408 metre RAB (Rotary Air Blast) and AC (Air Core) drilling programme.
Best results from a follow-up diamond and RC drilling programme at the Faré prospect include 3 m @ 10.47 g/t Au and 96 m @ 1.51 g/t Au (FADD-002), 19.5 m @ 1.08 g/t Au (FADD-021), 7 m @ 86.39 g/t Au (FARC-007), 7 m @ 1.64 g/t Su (FADD-013) and 23.5 m @ 1.41 g/t Au (FADD-023). Additional drilling at Faré South was undertaken in November-December 2014 and returned best intervals of 4.8 m @ 1.06 g/t Au (FADD-0026), 3 m @ 1.04 g/t Au and 5 m @ 0.78 g/t Au (FARC-0043), 2 m @ 1.26 g/t Au (FARC-0052), 1 m @ 4.39 g/t Au from 42 m (FARC-0053); and 2 m @1.07 g/t from 59 m (FARC-76). Potential for strike extension of the mineralisation to the north remains.
During Q1-2016, 1,136 soil samples were collected across four 250 m x 50 m grids in the vicinity of the Faré South Zone to assess possible SW-trending extensions, as well as the importance of a NNW-trending breccia zone identified during the Phase 2 RC drilling campaign. The most significant results yielded were from Grid 3, which clearly show south-westward extension of the Faré South anomaly (>30 ppb) by at least 750 metres and up to 600 m in width. A possible new gold anomaly (10-60 ppb) has also been identified in Grid 1, extending 1,250 m in a NW-SE direction, and this may correlate with NW-trending structures identified elsewhere in the licence area. Multiple, albeit less distinct, NE- and NW-trends are also evident in Grid 4, with a number of samples yielding 30-60 ppb and >60 ppb.
Trenching, mapping, and sampling at Madina Bafé has confirmed the presence of a 1.2 km by 30-45 m NE-striking mineralised zone in the south-east of the prospect. Mineralisation is hosted by sheeted tourmaline-quartz veins and quartz-tourmaline breccias with best results including 4.0 m @ 1.40 g/t Au (MBT-005), 6.0 m @ 0.86 g/t Au incl. 1.0 m @ 4.40 g/t Au (MBT-005),1.2 m @ 1.14 g/t Au (MTB-003) and 1.0 m @ 1.77 g/t Au. Mineralisation remains open to the east. RC and diamond drilling between trenches MBT-003 and MBT-004 has previously returned excellent intersections – including 9.6 m @ 16.08 g/t Au and 1.5 m @ 2.84 g/t Au – that are indicative of depth-continuity of the zone and of elevated gold contents.
IAMGOLD OPTION AGREEMENT
In March 2018 the Company announced that it had signed an option earn-in agreement with a subsidiary of IAMGOLD under which IAMGOLD could earn into 51% of the Dalafin project by spending US$4m over four years and a further 39% (total 90%) by spending an additional US$4m over a subsequent two years. IAMGOLD’s initial programme will focus on the Madina Bafé prospect, which is located 12 km WSW of its 2.52 Moz Boto project, and will include 3,000m AC drilling to assess geochemical signature of the bedrock and define mineralised corridors, 2,000m RC drilling to test previously-defined mineralised trends and best AC anomalies, and 750m diamond drilling.
CHIEF EXECUTIVE OFFICER
Tim has 28 years’ experience in gold and base metals, with a distinct focus on Africa, Europe and Asia. He has worked at all stages of exploration, development and mining, and has a strong track record of delivery, both at the technical and commercial level within previous positions. Some of his more notable roles to date include exploration manager (Eurasia), Barrick Gold Corp., project director and later CEO of Tethyan Copper Company Pty Ltd (a Joint Venture between Antofagasta Minerals and Barrick Gold Corp, owner of the Reko Diq project in Pakistan), and more recently as COO of TSX.V-listed Reservoir Minerals Inc., which was sold in June 2016 to TSX-listed Nevsun Resources Ltd for US$365 million. Tim joined the company in March 2018.
CHIEF FINANCIAL OFFICER
Bob is a member of the Institute of Chartered Accountants in England and Wales. He trained as a chartered accountant with Price Waterhouse, qualifying in 1992, and has a BSc in geography from Durham University. Bob has extensive experience of working for AIM-quoted companies, where he has been heavily involved in turnaround situations, fund raisings and acquisitions.
In partnership with three different CEO’s, Bob was instrumental in the turnaround and subsequent growth of AIM-listed Universe Group Plc as Group Finance Director, seeing its market capitalisation increase from £1.5m to £25m during his tenure.
Prior to the Universe Group, Bob was European Finance Director for OpSec Security Limited, where was heavily involved in formulating and implementing a very successful reconstruction plan. The restructuring plan stemmed the annual operating losses of £2.5million and moved the Company to a profit situation in the first year of its implementation.
John McGloin is a geologist and graduate of Camborne School of Mines. John worked for many years in Africa within the mining industry before moving into consultancy. He joined Arbuthnot Banking Group following four years at Evolution Securities as their mining analyst. He is also the former Head of Mining at Collins Stewart. More recently, John served as the Chairman and Chief Executive Officer of Amara Mining plc until 2016 when it was sold for US$85 m. He is currently a non-executive director to Caledonia Mining Corporation plc and to Perseus Mining Limited.
INDEPENDENT NON-EXECUTIVE DIRECTOR
David Pelham is a mineral geologist with over 35 years global exploration experience. He has overseen the discovery and early evaluation of multiple deposits, most notably including the +6 Moz Chirano Gold Mine in Ghana, as well as Hummingbird’s 4.2 Moz Dugbe gold deposit in Liberia. David has been a non-executive director to AIM-quoted Cora Gold Ltd since May 2017.
VP EXPLORATION & BUSINESS DEVELOPMENT
A Chartered geologist with over ten years’ experience in the resources sector, Claire graduated from the University of Southampton with a First Class Masters in 2007 and joined AIM-listed Stratex International shortly thereafter, where she spent the next 11 years. During her career, Claire has operated at both the technical and commercial level, with a particular focus on gold exploration in Africa and Turkey. In addition to managing the Company’s business development activities, Claire also oversees the Company’s exploration programmes and is heavily involved in the review and interpretation of technical data.
GENERAL MANAGER TURKEY
Bahri Yildiz is a Turkish national with an industrial career spanning more than 30 years dedicated to mineral exploration and mining geology throughout Turkey. A geology graduate of the Middle East Technical University, Bahri commenced his career in 1980 with the government’s General Directorate of Mineral Research and Exploration (MTA) where he spent ten years managing a wide range of projects relating to exploration for precious and base metals. This was followed by three years as Exploration Manager with Turkish company Yurttaslar Madencilik before he joined Dardanel Madencilik, the Turkish subsidiary of major Canadian mining company Inco Ltd in 1992 as Senior Geologist. During his final four years with Dardanel he was Exploration Manager and responsible for generating and supervising a wide range of exploration programmes throughout Turkey. Following closure of the Turkish office in 2003 he became an independent consultant before joining Stratex in April 2005.
GENERAL MANAGER WEST AFRICA
Issouf Ouedraogo graduated from the Faculty of Sciences and Technology at the University of Ouagadougou, Burkina Faso, where he obtained a Master’s degree in Applied Geology in 1995. Following graduation he joined AngloGold Ashanti, eventually becoming Chief Geologist for Siguiri Gold Mine in Guinea and then Exploration Superintendent for the Geita Gold Mine in Tanzania.
Issouf joined Gold Fields as Exploration Manager for DRC in 2008 before relocating to Accra in 2009 as Regional Geologist, responsible for generating projects in frontier gold camps throughout Africa. At this time he was also acting Country Manager for Gold Fields in Guinea and more recently was their JV Manager for Ethiopia. He joined Stratex in June 2013.
Oriole Resources PLC
Email: [email protected]
Tel: +44 (0)207 830 9650
Fax: +44 (0)207 830 9651
Chief Executive Officer: Tim Livesey
Media contact: Camarco
Tel: +44 (0)20 3757 4980
UK EXPLORATION OFFICE
Oriole Resources PLC
Upper Market Street
Tel: +44 (0) 238 065 1649
VP Exploration & Business Development: Claire Bay
Oriole Exploration Limited
t/a Stratex Madencilik San. Tic. Ltd. Şti.
Çukurambar Mahallesi 1458. Sokak
Elit Aprt. No: 17/6
06510 Çankaya, Ankara/Turkey
Tel: +90 (0) 312 285 2046
Fax: +90 (0) 312 285 2048
Oriole Exploration Limited
c/o Energy & Mining Corporation S.A.
Sacre Coeur 111 / VDN
Dakar BP.45.409, Senegal
Tel: +221 (0) 338 699 989
General Manager: Issouf Ouedraogo
General Manager: Bahri Yildiz
Grant Thornton UK LLP
30 Finsbury Square
Hannam and Partners
2 Park Street
Auditors and Reporting Accountants
1 Westferry Circus
Solicitors to the Company
2 Stone Buildings
Share Registrars Limited
Suite E, First Floor
9 Lion and Lamb Yard
Solicitors to the Company
Boğaz Sokak 7/8