Oriole Resources plc said that a revised environmental impact assessment (EIA) report has been submitted for its Muratdere copper-molybdenum porphyry development project in Turkey.
HISTORY
Oriole operated the project from 2005 to 2011, delivering a JORC-compliant inferred resource of 51 million tonnes grading 0.36% Cu, 0.12 g/t Au, 2.40 g/t Ag, 0.0125% Mo and 0.34 ppm rhenium.
The total metal contents are approximately 186,000t Cu, 204,296 oz Au, 3.9 Moz Ag, 6,390t Mo and 17,594 kg Re.
In 2012, the company sold a 51% interest in the project in a joint-venture agreement to the new operator Lodos Maden Yatırım Sanayii ve Ticaret A.Ş. for $1.7m.
Lodos is a wholly-owned mining investment company of Istanbul-quoted investment company Pragma Finansal Danışmanlık Ticaret A.Ş, which will fund the project.
Oriole holds a 1.2% post-tax net smelter return (NSR) royalty in the project.
In 2019, Lodos submitted an EIA which was rejected.
MURATDERE
Oriole today said that the mine plan included 16m tonnes of ore reserves with an average ore grade of 0.52% copper, 0.0125 % molybdenum, 0.11 g/t gold and 2.40 g/t silver.
An average 1.60m tonnes of copper-molybdenum ore will be extracted per year, through an open pit operation, over a mine life of 10 years.
The ore will be enriched in a state-of-the-art flotation facility with zero discharge, and built on site to produce a copper and molybdenum concentrate with payable gold and silver credits.
Gross metal revenues over the mine life are expected to be in excess of US$650m.
Oriole’s 1.2% NSR royalty is estimated to be approximately $7.5m over the same period.
POTENTIAL
Oriole’s chief financial officer Bob Smeeton said that the company anticipated a positive outcome, and a subsequent move towards the mine development stage, later this year.
“During what is a strong bear market, having legacy assets like this is extremely important for future sources of cashflow for the company.
“Being focused on the development of a strategic and globally significant metal, the Muratdere royalty is a highly saleable asset for the group and, with a positive outcome on the EIA report expected later this year, the value of that sale is likely to increase markedly in line with the enhanced level of derisking that brings.
“We are actively engaging with royalty groups regarding a potential sale.”