Awalé Resources Works to Uncover a New Copper-Gold District in Côte d'Ivoire

• Awalé Resources, a TSXV-listed explorer, is focused on uncovering a new copper-gold district in Côte d'Ivoire.
• The company underwent significant changes in May, with a $2.36 million raise, a new CEO and directors, plus the company settled their debt.
• Awalé's flagship project, Odienné, lies in the northwest Denguèlé Region of Côte d’Ivoire, close to the borders of Mali and Guinea. 2 of the permits are under JV with Newmont.
• Newmont's joint venture entails an exploration earning agreement where, upon spending $15 million dollars, they can earn up to 75% interest.

Awalé Resources Limited (TSX:ARIC) is a Canadian-based mineral exploration company focused on exploring and developing copper and gold assets in Côte d’Ivoire, West Africa. Led by CEO Andrew Chubb, an experienced geologist with over 15 years in West African exploration, Awalé is advancing its flagship Odienné project where recent drilling has uncovered a large copper-gold-molybdenum mineralized system.

New Funding & Technical Expertise

Awalé renewed focus on the district-scale potential at Odienné following a strategic investment and board changes earlier this year. Orecap Invest Corp. led by veteran mining executive Stephen Stewart, injected C$1 million into the company in May and brought significant technical expertise onto the board with the addition of geologist Charles Beaudry. According to Chubb, Beaudry recognized the similarities between Odienné and the early-stage exploration he had been involved with in the prolific Carajás copper-gold province in Brazil.

Shifting Exploration Approach at Odienné

This recognition led Awalé to re-evaluate its exploration approach at Odienné, shifting from a traditional orogenic gold model to an intrusive-related iron oxide copper-gold (IOCG) model. Recent drilling under this new IOCG exploration lens has intersected significant copper-gold mineralization outside of the main target areas, reinforcing the district potential. For example, one hole drilled to 365 meters depth intersected 0.2-0.6 g/t gold, similar percentages of copper, plus silver and molybdenum credits. Mineralization has now been traced across 700 meters of strike length and remains open.

Promising Regional Ground Position

The Odienné project encompasses over 2,500 sq km of prospective ground along the boundary of the Archaean and Proterozoic geological domains, a classic IOCG target environment. Last year, Awalé formed an earn-in joint venture on two key permits with major gold miner Newmont Corporation. Newmont is funding an initial US$15 million in exploration expenditures over 6 years to earn an initial 51% interest in the project. Awalé is the operator during this earn-in period.

Systematic Exploration Underway

The Newmont JV is currently focused on the advanced Odienné East and Odienné Ouest permits at Odienné. Newmont has allocated US$3 million towards drilling this year and results from the latest 5,000 meter drill program are pending. According to Chubb, Newmont is extremely pleased with the project so far. He expects at least another phase of drilling in Q4 and potentially an acceleration of spending by Newmont into 2024.

While the Newmont JV will continue to systematically explore the 2 Odienné permits, Awalé Resources plans to deploy its recent financing towards testing some of the multiple district-scale soil anomalies identified across its regional land package. These targets exhibit similar IOCG characteristics over 4-km strike lengths and are located along the same structural corridors. Demonstrating additional prospectivity across its regional permits will be key for Awalé in maintaining leverage over the longer term.

Favorable Mining Environment

Côte d’Ivoire has been a favored investment destination in West Africa since 2012 with a pro-mining policy agenda and major investments by companies like Endeavour Mining. Awalé Resources has been operating successfully in the country since acquiring its permits in 2017, establishing good relationships with local communities around its projects. Extensive infrastructure around the projects, including a commercial airport at Odienné, facilitates efficient exploration.

Risks & Opportunities

Risks

• Exploration and development risks - Mineral exploration is inherently risky, the company may fail to discover economic deposits or develop them into profitable mines.
• Funding risks - As a junior explorer, Awalé will need to raise additional capital for ongoing exploration and development. There is no guarantee they can raise sufficient funds.
• Commodity price risks - Copper and gold prices fluctuate and are out of the company's control. Lower prices could impact project economics.
• Political/country risks - Though Côte d’Ivoire is currently mining-friendly, changes in government policy, regulation, taxation etc. could adversely impact the company's operations.

Opportunities

• Discovery potential - Awalé's regional exploration permits provide significant upside potential for new copper-gold discoveries. Success could substantially boost the company's valuation.
• Strong backing - The involvement of veteran mining executives and funding from Newmont validates the potential of Awalé's projects.
• Rising copper demand - Copper is a critical metal for clean energy and EVs. Growing demand improves the long-term outlook for copper prices.
• Speculative upside - As a new exploration story, Awalé offers speculative miners exposure to potential stock price appreciation from exploration success.

Conclusion

With a strengthened board, renewed technical approach, major partner at Odienné, and extensive prospective ground position, Awalé Resources is primed to continue uncovering the copper-gold district potential in Côte d’Ivoire. The pending drill results from the Newmont JV permits will be an important catalyst for the company. Risk-tolerant investors may want to consider Awalé Resources as an early-stage copper-gold exploration play leveraged to continued success at its Odienné project.