Oriole Resources narrows first-half loss as development continues

West Africa-focussed exploration company Oriole Resources reported a pre-tax loss of £0.75m in its half-year results on Thursday, narrowing from £3.3m year-on-year.

The AIM-traded firm said its administrative expenses reduced to £0.58m for the six months ended 30 June, from £1.04m in the same period a year earlier.

It said consultancy and success-based payment fees in Turkey contributed “significantly” to that reduction, with the net cost of the Turkish operation falling to £0.04m from £0.17m.

UK Corporate costs were also down, to £0.47m from £0.72m, which the board put down to reduced director fees and reduced professional advisor fees.

A research and development tax relief claim for 2016, in respect of geoscientific advances sought by the company through its exploration programmes, delivered a rebate from HMRC of £40,000 during the period.

Oriole said further rebates for 2017 and 2018 were anticipated later in the year.

The board said the group’s cash balance as at 30 June stood at £0.72m.

On the operational front, in Senegal in the first quarter, Canadian mid-tier Iamgold Corporation confirmed that it had completed its first year earn-in at the company's Dalafin gold project by spending $1m on exploration at the southernmost Madina Bafé prospect.

It subsequently embarked on a second year programme for a planned 9,000 metres of drilling at the Madina Bafé prospect, and would extend the programme northwards to test the Saroudia target with a further 4,000-metre drilling programme later in the year.

Oriole said both prospects were within a 20 kilometre truckable distance from its 2.5 million-ounce Boto gold project, where a decision on mine permitting was expected later in the year.

Iamgold had the option to spend a total of $8m at Dalafin by March 2024, to earn a 70% interest in the project.

In Cameroon, the company said it completed its first year earn-in to the Bibemi and Wapouzé gold licences during the period, and as at 30 June had spent $1.04m.

A 9,145 metre first phase trenching programme at the “more advanced” project, Bibemi, delivered a best intersection of nine metres at 3.14 grammes per tonne of gold.

Under the terms of the agreement with Bureau d'Etudes et d'Investigations Géologico-minières, Géotechniques et Géophysiques, Oriole could earn up to a 90% interest in the projects by investing a total of $3.12m over four years.

“The first half of 2019 has seen significant activity across the group with our exploration programmes delivering excellent progress in both Senegal and Cameroon,” said Oriole chief executive officer Tim Livesey.

“Imagold’s commitment to the second year of its $8m earn-in reinforces its confidence in the Dalafin project to deliver additional feed for its Boto mine and we eagerly await Iamgold’s mine permit approval, which is expected later this year.

“Meanwhile, we are expanding our position in Cameroon to build on our success to date in what is an underexplored but highly prospective country.”