Oriole Resources PLC
('Oriole Resources' or 'the Company' or 'the Group')
AGM Results and Strategic Overview
Oriole Resources, the AIM-quoted exploration company, focused on exploration in West Africa, held its AGM at 15:00 today where all resolutions were duly passed.
A new corporate presentation is now available on the Company's website https://orioleresources.com/investors/reports-presentations/.
At the meeting John McGloin, Non-Executive Chairman, said:
"During 2018, we secured a new US$8 million joint-venture for our project in Senegal, recruited a new, technically-strong Management team and Board, expanded into Cameroon and made significant reductions in our administrative costs. This gave us a strong foundation with which to start the year and the team has continued to deliver positive newsflow across the business.
"In Cameroon, systematic exploration has continued, delivering solid progress at Bibemi and Wapouzé, through the respective Phase 1 trenching (8,742 metres, with 3,608 samples reported to date) and soil (2,119 samples) programmes, and delivering on the Year 1 earn-in expenditure commmitment. Phase 2 infill programmes are nearing completion, with further results from both projects anticipated later this quarter. Cameroon is a 'new frontier' with respect to modern gold exploration, offering huge potential in what is a geologically highly-prospective terrane. Following almost a year on the ground, we are very comfortable operating in Cameroon and see it as a key growth centre going forward. As such, we will be expanding our footprint during the year, with additional licences under our existing JV and new licence applications under a subsidiary of Oriole, in order to secure our first-mover advantage. We anticipate that companies will continue to follow our lead and expect the pace of investment in exploration to increase once results from the first phase of the World Bank-funded 'PRECASEM' geological targeting programme - led by the French and Finnish geological surveys - are released later this year. The Cameroonian government is highly supportive of foreign investment into the mining sector, having revised it's mining code in 2016, and we are pleased to be leading the way.
"In Senegal, our partner IAMGOLD recently confirmed that it had met its Year 1 commitment at the Dalafin project, following 5,195 metres confirmatory drilling at the Madina Bafé prospect in the southern end of the licence. It has now commenced its Year 2 programme with a further 13,000 metres drilling planned to extend the 2018 programme at Madina Bafé northwards, as well as stepping two kilometres to the northwest to test the Saroudia prospect. First results from these programmes are anticipated late Q2/Q3 2019. IAMGOLD is focusing initially on these two southernmost prospects which are closest to its 2.49 million ounce Boto gold project, where approval of a mining permit is anticipated by mid-year. Madina Bafé and Saroudia are located within 10 kilometres and 20 kilometres 'truckable distance' of Boto, respectively, and as such should be seen as satellite targets for Boto, with the potential to provide additional feed for IAMGOLD's planned mine. However, additional targets within the licence, in particular in the north at the Faré prospect (where Oriole has previously completed over 16,000 metres drilling and delivered multiple long intercepts of ore grade material, including best near-surface results of 96 metres at 1.51 grammes per tonne ("g/t") gold ("Au") and 7 metres at 86.39 g/t Au) could provide additional standalone mine targets. We believe that IAMGOLD will extend its exploration programmes to test other targets within Dalafin, including Faré, once they have fully-tested the potential for satellite deposits in the immediate vicinity of the Boto mine development project. The Board believes that Dalafin alone more than underpins the current share price and is a stark example of how undervalued the Company is in the current market.
"Financially speaking, we have continued to improve our operating efficiency across the Group. During the year thus far we have seen the conclusion of our appeal against the UK tax office, HMRC, which resulted in the receipt of circa £522,000 last month, as well as a successful claim for Research and Development ("R&D") tax relief, which delivered £40,000 in relation to the year ended 31 December 2016. Further R&D relief claims will be submitted later this year for the 2017 and 2018 reporting periods. The Company's cash position, which stood at £1 million at the end of April, has been further bolstered by value realisation across our various investments and royalties. In Turkey, this has included offsetting our costs by sub-contracting our geological team to local partners, as well as the receipt of staged payments relating to a US$500,000 success-based fee at the Karaağac gold project. As we enter the rainy reason in Cameroon, our operational spend will be significantly reduced, and we continue to monitor our positions across our investment and royalty portfolio and to review monetisation opportunities."
** ENDS **
For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:
Oriole Resources PLC
Bob Smeeton / Tim Livesey /Claire Bay
Tel: +44 (0)20 830 9650
Blytheweigh (IR/PR contact)
Tim Blythe / Megan Ray / Rachael Brooks
Tel: +44 (0)20 7138 3204
Grant Thornton UK LLP
Samantha Harrison / Ben Roberts / Niall McDonald
Tel: +44 (0)20 7383 5100
Hannam & Partners
Neil Passmore / Andrew Chubb
Tel: +44 (0)20 7907 8500
Turner Pope Investments (TPI) Ltd
Ben Turner / James Pope / Andy Thacker
Tel: +44 (0)2036214120
Notes to Editors:
Oriole Resources PLC is an AIM-listed exploration company, operating in Africa and Europe. It is focused on early-stage exploration in Cameroon and the more advanced Dalafin gold project in Senegal, where IAMGOLD has the option to spend US$8m to earn a 70% interest. The Company has a number of interests and royalties in companies operating throughout Africa and Turkey and is assessing new opportunities in both regions.
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