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Oriole Resources looks to utilise first mover advantage in West African gold exploration

Snapshot

  • Experienced management team
  • Attractive portfolio of gold assets in Cameroon and Senegal
  • Joint venture with well-known industry name IAMGOLD
explorers

Quick facts: Oriole Resources PLC

Price: 0.375 GBX

LSE:ORR
Market: LSE
Market Cap: £2.63 m
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What does Oriole Resources do?

Oriole Resources PLC (LON:ORR) is a resources exploration and development specialist with a focus on gold.

The company has a long-standing presence in West Africa and Turkey and has lately decided to focus on Cameroon.

Chief executive Tim Livesey is an experienced mining professional with a long track record in the industry.

Other well-known faces in the junior mining space, notably John McGloin, formerly of Amara and now of Perseus, and David Pelham, one of the geological brains behind Hummingbird’s early exploration success, are also on the board.

 

 

What does Oriole Resources own?

Cameroon: Oriole’s own focus is early-stage gold exploration in Cameroon and the Bibemi and Wapouzé projects in particular.

These projects lie over highly prospective neoproterozoic Pan-African greenstone belts in north-eastern Cameroon.

Oriole has the option to earn a 90% interest by spending US$3.12mln.

Under the terms of the option agreement, Oriole will earn an initial 51% of both projects by funding US$1.56mln of exploration over the next two years.

Thereafter, Oriole can earn a further 39% for an additional U$1.56mln exploration expenditure, or on the completion of a pre-feasibility study on at least one of the projects, over the subsequent two years.

Senegal: The company also has a significant stake in the more advanced Dalafin gold project in Senegal, where IAMGOLD has the option to spend US$8mln to earn a 70% interest.

Elsewhere: In addition, Oriole holds interests and royalties in companies operating throughout Africa and Turkey and continues to assess new gold and base metal opportunities in both regions.

 

How is it doing

In early August, Oriole’s area of interest at the Medina Bafe target expanded to 16 sq km after more indications of gold were found by IAMGOLD, its partner on the project in Senegal.

IAMGOLD completed 4,167m metres of a planned 5,000m shallow drilling programme and identified multiple anomalies of greater than 20 ppb gold (0.02g/t) as well as a new area several kilometres to the north.

In September, the company formed a new local subsidiary in Cameroon, Oriole Cameroon SARL, and submitted applications for a district-scale land package to expand its footprint in the country by around 3,500 square kilometres.

Meanwhile, the firm said on 29 October that I had received income of two million Turkish lira, or around US$341,000, in the year to date from success-based payments relating to operations in Turkey and through consultancy fees.

This enabled the Turkish team to become financially self-sustaining during 2019, whilst continuing to manage the company’s investments in the country.

Oriole’s activities were also given a boost in November when it another £105,000 in research and development (R&D) rebates from the UK tax authorities for “geoscientific advances” made during its exploration work.

 

What the boss says: Tim Livesey, chief executive  

"As we indicated back in May, our success to date in Cameroon has given us the confidence to build on our existing footprint in the country to capitalise on our position as first movers in this new frontier for gold exploration,” said chief executive Tim Livesey on the decision to expand the group's activities in Cameroon.

"During our technical review meetings in July, the team identified and ranked seven key areas within Cameroon where we felt the geological potential merited us staking new licences.  We have now submitted eight new licence applications covering a district-scale land package in our highest ranked areas.”

With the shares trading at 0.28p as of 11 November 2019, Oriole carries a market cap of £1.9mln.

 

Watch video interview

 

Inflection points

  • Continued results from exploration in Cameroon
  • Cash from Turkish royalties
  • Set up Cameroon subsidiary to expand footprint
  • Have to capitalise of first mover position by acquiring more ground says Livesey

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Watch

Oriole Resources' Tim Livesey updates on operations at Mines & Money London

Oriole Resources PLC's (LON:ORR) Tim Livesey caught up with Proactive's Andrew Scott while at Mines & Money in London 2019. Most recently Oriole's concluded the conversion of its interest in the Muratdere copper-molybdenum-gold deposit to a 1.2% post-tax net smelter return (NSR)...

1 week, 3 days ago

RNS

Holding(s) in Company

2 weeks, 2 days ago

Muratdere Converts to a 1.2% NSR

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Updated Presentation

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Work Restarts in Senegal

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Second Price Monitoring Extn

2 weeks, 4 days ago

Price Monitoring Extension

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Strategic Update

3 weeks, 2 days ago

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