Oriole Resources PLC (AIM:ORR), the AIM-quoted gold exploration company focussed on West Africa, has said it will write down the carrying value of its 24.94% interest in privately-owned Thani Stratex Resources Limited (TSR) after its Hodine licence in Egypt was formally relinquished.
On 19 October 2022, Oriole reported that Red Sea Resources Limited (RSR) had spent US$2.2mln on exploration at Hodine, specifically the Anbat project, but that it would not be exercising its option to acquire an 85% interest in the licence.
The decision was made on the basis that the exploration programmes had not significantly improved the existing 2017 inferred Mineral Resource Estimate (MRE) at Anbat of 209,000 ounces grading 1.11 grammes per tonne gold.
Furthermore, the Egyptian mining authority, EMRA, had concluded that the 2017 MRE did not satisfy the definition of a commercial discovery under the Egyptian Mining Code. Accordingly, RSR, therefore, forfeited its right to an 85% interest in the licence and TSR resumed full control.
With the licence due to expire on 31 December 2022 and no possibility of extending its tenure, TSR has advised the company that it has now formally relinquished the licence.
Accordingly, Oriole said an amount of £1.45mln, relating to the carrying value of TSR, will be written down in the company's accounts at year-end.
Oriole is focussed on early-stage exploration in Cameroon, where the company has recently reported a JORC Exploration Target of between 290,000 and 440,000 ounces of gold at the Bibemi project and has identified multi-kilometre gold and lithium anomalism within the district-scale Central Licence Package project.
At the more advanced Senala gold project in Senegal, IAMGOLD is operator and has the option to spend US$8mln to earn a 70% interest. Under the terms of the option agreement, IAMGOLD has recently met its first commitment by spending US$4mln within an initial four years and will shortly acquire a 51% interest in Senala.
Oriole also has several interests and royalties in companies operating in East Africa and Turkey that could deliver future cash flow.