Stockbroker Shard Capital insisted that “Oriole [Resources PLC] should have a place in every gold bug’s portfolio” given the early-stage exploration risk-reward opportunity at the Senala gold joint venture project in Senegal.
Shard's optimism followed confirmation that IAMGOLD has earned the right to a 51% stake in Senala after agreeing to spend a further US$4mln on the project.
IAMGOLD has already spent over US$4mln on the project and has now exercised its second option, to spend a further US$4mln by end-February 2024, which would lift its interest to 70%.
“We view the completion of the first option period and start of the second option period as a huge vote of confidence in the prospectivity and potential of the Senala licence,” Shard Capital said.
"IAMGOLD’s continued commitment to the project is considered a testament to the quality of the geological setting and the possible scope for the development of a standalone mining operation at Faré, Shard added.
“The prospectivity and potential scale of the gold system at Senala and Faré are becoming clearer with every additional round of exploration.
“Having a major mining company and quality operator press on with exploration at Senala is highly encouraging.”