Oriole Resources has first mover advantage in Cameroon says broker
Published: 15:01 01 Feb 2023 GMT
Oriole Resources offers investors first mover advantage in Cameroon, with a portfolio of highly prospective, early-stage assets that offer significant room for value creation, broker SP Angel suggests.
Oriole is currently developing a suite of licences across Cameroon and has delivered an initial JORC MRE (mineral resource estimate) in the inferred category at Bakassi Zone 1, one of four projects at its Bibemi licence.
“By providing a fast-tracked JORC MRE at Bakassi Zone 1, the team has highlighted their ability to generate greenfield discoveries in under-explored jurisdictions such as Cameroon,” the broker said in a note.
In addition to 305,000oz gold at Bibemi, Oriole has a 49% interest in a 105,000oz gold Inferred MRE in Senegal at Senala, where it is being free carried by IAMGOLD.
Oriole can boost those resources further with additional definition and increases in both tonnage and ounces at both Bibemi and Senalaz, which will bolster the longer-term multiples assigned to the company.
Although Oriole’s current combined attributable gold grade stands at 1.75g/t, the MRE at Bakassi Zone 1 offers 2.19g/t, which would place Bibemi towards the higher end of the selected peers on a grade basis.
Considering early and late-stage exploration and development companies in the area, market valuation multiples range significantly from as low as US$3-4/oz MII (Total Resource) for marginal projects to US$36-184/oz for higher grade deposits with an average of US$17/oz across the area.
