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.”
The AIM-quoted exploration company is focused on early-stage gold exploration in Cameroon and also has the Senala project, a joint venture with IAMGOLD, in Senegal.
Shard Capital said stream sediment sampling over two of Oriole’s eight Central Cameroon licences returned ‘highly encouraging’ results and were a good indication of the district’s potential.
The broker also noted that preparatory work is underway for the Phase 2 drill programme due to kick off in September at Bibemi, also in Cameroon, while recent drilling by IAMGOLD at Senala continued to support the development and commercial potential of the licence.