ORR Site Visit

Thank you Matthew Yates and the Orecorp team for hosting us their Nyanzaga gold project in Tanzania.

The Company is currently progressing it’s DFS which is due to be released in the SepQ.

We recognise that recent cost inflation could put upwards pressure on both capex and AISC.

Numerous work programs are underway include, relocation action plan (RAP) within the SML which appears to be tracking to plan, with many locals already signing on.

Green credentials are also encouraging with +70% of the grid power coming from cheap hydro (<US10c/kWh, this could become appealing to debt providers. Regional infrastructure on the improve with large bridge (4KM) under-construction to reduce travel time to mine site.

In country mood under the new President appears strongly supportive of encouraging foreign investment, particularly mining. BHPs investment into Kabanga nickel adds weight to this. 

We are of the opinion that this project could be appealing to many well capitalised gold miners, given the optionality to upscale the size of the project.

Regional exploration results are pending with the company planning to follow up with rigs in the coming months. Company is largely targeting regional Nyanzaga lookalikes which have had little to no drilling