Results for the six-month period ended 30 June 2019.
Operational Highlights:
- Senegal – in Q1-19, Canadian mid-tier IAMGOLD Corporation (“IAMGOLD”) confirmed that it had completed its Year 1 earn-in at the Company’s Dalafin gold project in Senegal by spending US$1 million on exploration at the southernmost Madina Bafé prospect (Announcement dated 28 February 2019). It subsequently embarked on a Year 2 programme for a planned c.9,000 metres (“m”) drilling at the Madina Bafé prospect and will extend the programme northwards to test the Saroudia target with a further c.4,000m drilling programme later this year (Announcement dated 31 May 2018). Both prospects are within a 20km truckable distance from its 2.5 million-ounce (Measured and Indicated) Boto gold project where a decision on mine permitting is expected later this year. IAMGOLD has the option to spend a total of US$8 million at Dalafin by March 2024 to earn a 70% interest in the project;
- Cameroon – During the Period, the Company completed its Year 1 earn-in to the Bibemi and Wapouzé gold licences in Cameroon (Announcement dated 21 May 2019) and as at 30 June 2019 had spent US$1.04 million. A 9,145m Phase 1 trenching programme at the more advanced project, Bibemi, delivered a best intersection of 9m at 3.14 grammes per tonne (“g/t”) gold (“Au”). Under the terms of the agreement with Bureau d’Etudes et d’Investigations Géologico-minières, Géotechniques et Géophysiques SARL (“BEIG3”), Oriole can earn up to a 90% interest in the projects by investing a total US$3.12m over four years;
Financial Highlights:
- The Group’s pre-tax loss for the 6 months to 30 June 2019 was £0.75 million (2018: loss of £3.30 million);
- Administrative expenses reduced to £0.58 million (2018: £1.04 million). Consultancy and success-based payment fees in Turkey contributed significantly to this reduction, with net cost of the Turkish operation falling to £0.04 million (2018: £0.17 million);
- UK Corporate costs were also reduced to £0.47 million (2018: £0.72 million), due to reduced directors’ fees and reduced professional advisor fees;
- A Research and Development (“R&D”) tax relief claim for 2016 in respect of geoscientific advances sought by the Company through its exploration programmes delivered a rebate from Her Majesty’s Revenue and Customs (“HMRC”) of £40,000 (Announcement dated 21 February 2019). Further rebates for 2017 and 2018 are anticipated later this year
- The cash balance of the Group as at 30 June 2019 was £0.72 million.
Tim Livesey, CEO of Oriole, said: “The first half of 2019 has seen significant activity across the Group with our exploration programmes delivering excellent progress in both Senegal and Cameroon. IAMGOLD’s commitment to the second year of its US$8 million 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.”
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