Oriole Resources PLC (LSE:ORR), an AIM-listed gold explorer, said the Hodine exploration licence in Egypt has been renewed and that drilling has started.
Oriole has 24.92% interest in privately held Thani Stratex Resources Ltd, which holds a 93% interest in the Hodine licence. Private investment company Red Sea Resources Ltd owns the remaining 7% and can earn up to 85% in return for staged expenditure commitments totalling US$2.2mln (£1.6mln) under a deal signed in March.
Drilling has now started on the licence as part of Red Sea’s first option to spend US$1.2mln on exploration within 12 months in return for a 51% interest in Hodine.
"We are pleased to see the licence renewal has been completed smoothly and that the exploration programme has started," said Oriole chief executive Tim Livesey. "With existing JORC and non-JORC resources on the licence from previous drilling, we expect there will be continued success in resource development on this promising licence."