Oriole Resources (LSE:ORR) was up 0.8pc to 0.38p in midday trading on Monday after revealing a $500k success-based payment from one of its investments in Turkey. The firm will receive the money from its partner Anadolu in relation to the Karaağaç project in Turkey.
The payment was triggered by the definition of a minimum JORC 2012-compliant resource of 50,000oz of gold at the site under the terms of a 2015 exploration agreement. Anadolu has announced an indicated and inferred resources of 348,150pz gold and 2,832,036oz at the site. The firm is now waiting for the Urban and Environment ministry in turkey to approval an Environmental Impact Assessment for the site.
Oriole will receive staged payments of $25,000 a month for 20 months. It was paid the first of these instalments in February. The business is also entitled to a 1.5pc net smelter return royalty on any future production.
Oriole’s chief financial officer Bob Smeeton said the development provided ‘further evidence’ of the success of oriole’s self-funding exploration strategy.
‘The company's focus on developing projects in conjunction with carefully chosen partners means that we can expose investors to significant exploration upside whilst also minimising the risk of dilution,’ he added.
The news comes less than a week after Oriole revealed very encouraging’ high-grade anomalies at its assets in Cameroon. In an exploration update for the Bibemi asset, where it is earning up to a 90pc interest, Oriole said the first phase of a trenching programme had confirmed multiple zones of gold mineralisation. This includes 6m at 3.02 g/t gold with individual veins returning up to 13.7 g/t.
The trenching programme is now complete, with the remaining results anticipated later this quarter or in early Q2 2019. The work followed the news last November that rock-chip sampling results for Bibembi had demonstrated ‘bonanza’ high-grade gold anomalism extending over the c.4km strike. A phase two trench programme will now begin for a planned 4,360m.
Elsewhere the business said it has also completed soil sampling at the earlier stage Wapouze project, where it is also earning up to a 90pc stake. Results for 2,119 soil samples and 146 rock samples are expected later this month.
Oriole entered a conditional option agreement with established Cameroonian outfit BEIG3 in June last year for Bibemi and Wapouzé. The assets cover the highly prospective Neoproterozoic Pan-African greenstone belts in the north-east of the country.
The two-part agreement gives Oriole the right to earn up to a 90pc interest in the projects and take over their management. For an initial 51pc stake, the firm must fund $1.56m of exploration over two years, with a minimum commitment of $560,000 in the first year. It can then earn up to a further 39pc in exchange for another $1.56m exploration payment.
Monday’s update also comes several weeks after Oriole received a £500,000 rebate from the UK tax office. It will re-invest this into Cameroon and its other projects.
Author: Daniel Flynn
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