Recent drilling results from the Odienné gold-copper project in Ivory Coast have shown promising signs of high-quality ore extending nearly 400 meters underground. This discovery has sparked optimism for the potential of large-scale mining operations in the region.

According to a report by Awalé Resources, drilling hole BBDD-31 encountered a 36-meter section with an average of 1.51 grams of gold per ton, along with copper and silver content. Notably, within this section, there was a 7-meter interval that exhibited a higher concentration of 7.04 grams of gold per ton. These findings suggest that the ore body extends deeper, providing a favorable outlook for underground mining following the initial open-pit operations.

Justin Chan, an analyst from SCP Resource Finance, expressed optimism regarding the drilling results, stating that the deep ore body could enhance the mining potential at the site. The open-pit operation at BBM is expected to last approximately 10.5 years, with an average yield of 1.1 grams of gold and 0.3% copper. Meanwhile, the Charger area is projected to have a similar lifespan with an estimated output of 200,000 tons annually and an average gold content of 5 grams per ton.

Should the underground mining at BBM be developed, the overall project lifespan could be extended, potentially increasing gold reserves and clarifying the scale of the ore structures at both BBM and Charger 2. This could elevate annual production to over 150,000 ounces of gold.

The recent drilling has revealed a gold ore body extending up to 400 meters, which could significantly expand the resource scale of the Odienné project, bringing it closer to joining the ranks of major gold-copper mines in Ivory Coast. Awalé Resources has also secured a $14.2 million Canadian investment from Predictive Discovery, indicating strong interest from major mining companies in the project's potential.

Following the announcement, Awalé's stock price increased by approximately 8%, reaching $0.80 Canadian per share, with a market capitalization of around $93.8 million Canadian. Over the past year, the stock has fluctuated between $0.48 and $1.18 Canadian per share.

Awalé Resources' CEO, Andrew Chubb, noted that the initial drilling results below the open-pit area met expectations, revealing the highest gold grades ever discovered at BBM. This reinforces confidence in the untapped mineralization potential of the site. The ongoing drilling program consists of 12 holes aimed at assessing the ore body beneath the core of the BBM mine, with depths reaching up to 600 meters.

Currently, the Odienné project is estimated to contain about 32.4 million tons of ore with an average grade of 1.33 grams of gold per ton and 0.33% copper, equating to approximately 1.4 million ounces of gold and 93,000 tons of copper across three areas: BBM, Charger, and Empire. BBM contributes the majority of the reserves.

Under the joint venture agreement, Awalé is responsible for managing all exploration activities at Odienné, while Newmont provides funding for the exploration and development program.