Oriole Resources PLC has a diverse portfolio of African gold assets
- Oriole Resources pleased with latest assays from Senegal
- Oriole Resources has made encouraging progress in Cameroon and Senegal, says broker
- Oriole present their latest financial report with a focus now on returning to normality
Quick facts: Oriole Resources PLC
Price: 0.425 GBX
Market Cap: £6.7 m
About the company
Oriole Resources PLC is an AIM-listed exploration company, operating in Africa and Europe.
Oriole is focused on early-stage gold exploration in Cameroon and the more advanced Senala 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 gold and base metal opportunities in both regions.
How it is doing
Best results from the near-surface programme were grades of 1g/t over 8m at a depth of 112m.
IAMGOLD is carrying out the exploration as part of an earn-in programme with 80% of a two-phase exploration programme at the Faré and Madina Bafé prospects now complete.
In August, IAMGOLD released results for 38 out of 42 shallow holes at Faré North and Faré Far South that showed best intersections of up to 11m grading 1.22 g/t gold and 35m grading 3.61 g/t respectively.
The 1,650-metre programme, which is expected to start before the end of September, will target a 1-kilometre strike length at the southern end of the Bakassi Zone 1 prospect.
What the brokers say
Oriole Resources PLC (LSE:ORR, FRA:S1Y) has made encouraging progress with its gold projects in Cameroon and Senegal, but this has not yet been reflected in the company’s valuation, said broker Shard Capital.
“There are exciting times ahead for Oriole with the scale and prospectivity of the district play in Central Cameroon starting to become clear. At the Senala JV, the maiden MRE [mineral resource estimate] is a major milestone for Oriole and exploration continues to deliver highly encouraging results,” Shard Capital said in a research note.
“We view ORR’s current market cap of £7.7mln as extremely unchallenging given how the true potential in both Cameroon and Senegal is starting to emerge at a rate of knots.”
What management says
The pre-revenue company made a loss before tax of £871,000 versus a profit of £167,000 the previous year.
Administration expenses rose to £524,000 in the first half of the year from £416,000 the year before, reflecting the return to full-time salaries for the team after voluntarily wage reductions in the prior year in response to the COVID-19 pandemic, and a restart of exploration activities as borders reopened and travel became possible.
This company may be familiar to many investors under its previous guise as Stratex International, when its focus was as a hybrid developer/project generator, with a strong bias towards Turkey.
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...FOR OUR FULL DISCLAIMER CLICK HERE