Corporate Update

Oriole Resources PLC

02 January 2024

 

Oriole Resources PLC

('Oriole Resources' or 'the Company' or 'the Group')

Corporate Update

Oriole Resources (AIM: ORR), the AIM-quoted gold exploration company focussed on West Africa, is pleased to provide an update on its activities and investments, including the Bibemi ('Bibemi') and Mbe ('Mbe') gold projects in Cameroon (together the 'Projects').

Highlights

·    Execution of the Bibemi and Mbe Earn-In Agreements is anticipated during January 2024. BCM International Limited ('BCM') will earn up to a 50% interest in both Bibemi and Mbe in return for meeting certain commitments, including payment of the outstanding Signature Payments (US$450,000 for Bibemi and US$1 million for Mbe), funding US$4 million in exploration expenditure at each of the Projects plus future resource-linked success-based payments;

·    At Bibemi, expenditure against the US$4 million funding on Bibemi has already commenced, with approximately US$72,000 received to support camp upgrades and ongoing technical studies in support of the application for an exploitation licence in 2024;

·    The Mbe Earn-In Agreement is conditional on the successful conclusion of BCM's due-diligence review. BCM has recently completed a three week-long site visit and collected 639 samples which are now being prepared for analysis. Results are anticipated in late January;

·    Due to the Mbe Earn-In Agreement, the proposed financing previously announced on 11 April 2023 with the Canadian Investment Bank is currently on hold pending completion of the Mbe Earn-In Agreement;

·    During December 2023, a renewal application was submitted for the Senala gold project ('Senala') in Senegal. Managem has confirmed that it will not be completing any further work at Senala under the existing option agreement, which expires on 17 February 2024. The Company is currently considering the future of the partnership post completion of the option agreement; 

·    Approval for a two-year licence extension is still awaited at Wapouzé, where the Company requested a change in commodity focus from gold to limestone on the basis of geological and geochemical data (Announcement 27 September 2023). Once the renewal is granted, the Company will look to secure an industrial mineral partner to progress the asset.

Photo 1: Samples collected during the BCM due-diligence review at Mbe

Oriole Resources CEO, Tim Livesey, said: "When I first introduced the concept of exploration in Cameroon to the Oriole team in 2018, they were quick to recognise the potential and to support the strategy of developing our focus on this new frontier for gold exploration. 

"Since 2018, the team's diligent work has now paid off, with successive exploration gains at Bibemi and throughout our Central Licence Package.

"With our efforts to attract a project-level partner for two of our properties nearing completion, we hope to see rapid and successful progress in 2024, with the expansion and enhancement of the Resource at Bibemi, and advancement of the definition of a new gold district within the Central Licence Package, starting with the Mbe project.

"Of course, our focus has not dropped on progressing other opportunities that may add value to the Company and, as such, we continue to progress the Wapouzé licence to a stage of potential farm out as a source of industrial minerals for the cement industry in the Region.

"At Senala in Senegal, Managem is considering its next steps as it reaches the end of the second option period, after which its equity position will be confirmed and the possibility of project advancement together as partners, or sale of the asset, can be considered.

"In Turkey, our legacy royalty asset, Muratdere, continues to advance through the permitting stage, moving ever closer to a realisation of value.  On several other fronts in Turkey, we continue to seek value from our debtors through ongoing court proceedings.

"In short, 2023 was a year of growth-building for Oriole, with significant new partnerships already starting to deliver value in our key projects in Senegal and Cameroon.

"Whilst we prepare to welcome BCM officially as our new partner, we still retain control of significant landholdings in Cameroon, a new frontier for gold exploration, and have several additional routes to value that we are working hard to unlock for our shareholders."

Further Details

During 2023, the Board focused its efforts on bringing-in project level funding to progress its assets and on 20 November 2023, the Company signed two Heads of Terms with BCM, a well-respected mining and civil contractor, related to earn-ins by BCM on the Company's Bibemi (92.8%-owned) and Mbe (90%-owned) gold projects, respectively.

The Company today reports that drafting of the definitive Bibemi and Mbe Earn-In Agreements is progressing well and it is now anticipated that they will be finalised during January 2024. Execution of these Earn-In Agreements will secure up to US$4 million in exploration expenditure for each Project in addition to Signature Payments and JORC resource linked success-based payments (Announcement 20 November 2023).

At the Bibemi project in northern Cameroon, under the terms of the draft Bibemi Earn-In Agreement, BCM will pay Oriole US$450,000 (being the US$500,000 Signature Payment less the US$50,000 deposit already paid). Expenditure against the US$4m funding has already commenced, with approximately US$72,000 already received to support camp upgrades and ongoing technical studies in support of the application for an exploitation licence in 2024. It is anticipated that drilling will resume at Bibemi in Q1-2024, with a strong focus on expanding the resource inventory at the Bakassi Zone 1 prospect, where the Company has already announced a maiden Mineral Resource Estimate of 305,000 ounces ('oz') grading 2.19 grammes per tonne ('g/t') gold ('Au') in the JORC Inferred category, within the limit of a US$1,800/oz gold price pit shell, and an additional JORC Exploration Target of between 1.5 and 2.2 million tonnes at grades ranging from 1.10 to 2.10 g/t for between 53,000 and 148,000 oz of Au (announcement dated 12 December 2022). Further details on the planned drilling programme will be announced in due course, subject to execution of the Bibemi Earn-In Agreement.

At Mbe, a 312km² licence located within the broader 2,266km² Eastern CLP package of contiguous gold-focussed licences in central Cameroon ('Eastern CLP' or the 'Licence Package'), the Company has identified a 3km-long zone of high-grade gold mineralisation with results of up to 134.10 g/t Au from surface samples and artisanal workings (announcements dated 30 January 2023, 27 February 2023 and 21 June 2023).

Receipt of the US$1 million Signature Payment, and the Mbe Earn-In Agreement, is conditional on the successful outcome of a due diligence review by BCM, ending no later than 31 January 2024. To date, BCM has completed (at its cost) a three-week long site visit to Mbe and has collected 639 samples weighing 2-5 kilograms each over the 3km-long zone. These samples will now be sent for analysis (together with 68 QAQC samples, for a total 707 samples) at the Intertek laboratory in Ghana, predominantly for Fire Assay analysis but also for some preliminary metallurgical testwork (bottle-roll leach test) to ascertain the recoverability of the gold. Results are expected in late-January.

 

Photo 2 (Left): BCM's geological consultant, Dr Bob Griffis, and Oriole's Exploration Manager for Cameroon, Abdoul Mbodji, discussing the geology of the Mbe gold system

Photo 3 (Right): Sample collection during the BCM due-diligence review at Mbe

Meanwhile, the Board continues to advance exploration, and in parallel seek project-level investment partners, on the remaining four licences in the Eastern CLP. The proposed financing previously announced on 11 April 2023 with the Canadian Investment Bank will look to be restructured. It continues to show an interest in the Licence package and is considering its position accordingly. A further update will be provided on this in due course. The Company also continues to engage with parties interested in the lithium anomalism previously identified within the Ndom licence (also part of the Eastern CLP) and the adjacent Gamboukou licence.

At the Wapouzé project, located 20km north of Bibemi, the Company submitted a formal request earlier this year for a change of permitted substance from gold to industrial minerals (Announcement dated 27 September 2023). This, and a renewal of the licence for a further two-year period, is awaited. Once received, the Company will look to secure an industrial minerals partner to develop the Wapouzé project through to exploitation on an expedited basis. Oriole is ultimately looking to achieve a royalty-based payment, likely based on the volume of material extracted, which would provide in-country revenue that can be redirected towards its gold and lithium-based exploration work at Bibemi and the Eastern CLP licences.

At Senala, a renewal application has been submitted for a further three-year term. Having originally intended to complete a 2,000m drilling programme at the Faré prospect during Q4-2023, Managem has confirmed that it will not be completing any further work at Senala under the existing Option Agreement, which expires on 17 February 2024. Accordingly, and subject to a final review of the accounts at that time, it is likely that Managem's resultant interest in the project will be approximately 60% (based on expenditure to date) under the option agreement. Managem retains the right to take its interest to the maximum of 70% under the option agreement by making a cash payment to Oriole directly which is equivalent to any shortfall in exploration expenditure (currently estimated to be US$2.3 million. The Company is considering its next steps, post completion of the option agreement, which includes, but is not limited to, a joint-venture partnership with Managem or a sale of its interest in Senala. 

In Turkey, the Company's former Muratdere project, in which it still holds a 1.2% net smelter returns royalty, continues to advance through the permitting stage. The Board also continues to seek value from its other legacy assets, where ongoing court proceedings are continuing to make progress against third party debtors.

Competent Persons Statement 

The information in this release that relates to Exploration Results has been compiled by Claire Bay (Executive Director, Exploration and Business Development). Claire Bay (MGeol, CGeol) is a Competent Person as defined in the JORC code and takes responsibility for the release of this information. Claire has reviewed the information in this announcement and confirms that she is not aware of any new information or data that materially affects the information reproduced here, and that the material assumptions and technical parameters that underpin the Bibemi Mineral Resource Estimate continue to apply.

** ENDS **

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

For further information please visit www.orioleresources.com, @OrioleResources on Twitter, or contact:

Oriole Resources Plc	Tel: [phone]
Tim Livesey / Bob Smeeton / Claire Bay
BlytheRay (IR/PR Contact)	Tel: [phone]
Tim Blythe / Megan Ray
Grant Thornton UK LLP	Tel: [phone]
Samantha Harrison / Ciara Donnelly
SP Angel Corporate Finance LLP Ewan Leggat / Harry Davies-Ball	Tel: [phone]

Notes to Editors:

Oriole Resources PLC is an AIM-listed gold exploration company, operating in West Africa. It is focussed on early-stage exploration in Cameroon, where the Company has a maiden Resource of 305,000 oz Au at 2.19g/t in the JORC Inferred category at the Bibemi project and has identified multi-kilometre gold and lithium anomalism within the district-scale Central Licence Package project. The Company is currently working towards the completion of two earn-in agreements with BCM International Limited ('BCM') to fast track the Bibemi project and the Mbe project (part of the CLP), with BCM committing to signature payments, US$4 million exploration spend and resource-based success payments at each project in return for up to 50% ownership.

At the more advanced Senala gold project in Senegal, AGEM Senegal Exploration Suarl ('AGEM'), a wholly-owned subsidiary of Managem Group, has earned an initial 51% beneficial interest in the Senala Exploration Licence by spending US$4 million and has the option to spend up to a further US$4 million by 17 February 2024 to earn an additional 19% interest in the licence. The Company also has several interests and royalties in companies operating in East Africa and Turkey that could deliver future cash flow.

 

END