Oriole Resources PLC (AIM:ORR) said an updated Environmental Impact Assessment (EIA) report has been submitted for the Muratdere copper-molybdenum project in Turkey.
Oriole has a 1.2% post-tax net smelter return (NSR) royalty in the project, which is operated by Lodos Maden Yatırım Sanayii ve Ticaret AŞ, a unit of Istanbul-quoted investment company Pragma Finansal Danışmanlık Ticaret AŞ.
"After a false-start back in 2019/2020, we commend Lodos' tenacity and professionalism in working alongside more than a dozen governmental departments to reach this point of EIA resubmission,” said Oriole chief financial officer Bob Smeeton. “All this whilst dealing with the global chaos of Covid-19, which has hit Turkey particularly hard.
“We anticipate a positive outcome, and a subsequent move towards the mine development stage, later this year.”
The mine plan includes 16 million tonnes of ore reserves with an average grade of 0.52% copper, 0.0125 % molybdenum, 0.11 grammes per tonne (g/t) gold and 2.40 g/t silver.
An average of 1.60 million tonnes of copper-molybdenum ore will be extracted annually, through an open pit operation, over a 10-year mine life.
Gross metal revenues over the mine life are expected to be more than US$650mln with Oriole's 1.2% NSR royalty estimated to be about US$7.5mln, although this does not take into account any value from the underlying resource, which is outside of the current mine plan.
“Being focused on the development of a strategic and globally significant metal, the Muratdere royalty is a highly saleable asset for the group and, with a positive outcome on the EIA report expected later this year, the value of that sale is likely to increase markedly in line with the enhanced level of de-risking that brings,” added Oriole’s Smeeton.
“We are actively engaging with royalty groups regarding a potential sale."
The project will be funded by Pragma and so does not require external financing to take into production.