Interview with Justin Tremain, Managing Director of Exore Resources (ASX: ERX).

Exore Resources, formerly Oroya Mining Limited, is an Australian-based Gold exploration and development company listed on the ASX, and was founded in 1985. The company owned lithium mining projects in Portugal and Sweden.

Exore Resources recently acquired what it claims to be 'some of the most compelling Gold exploration ground in northern Cote d’Ivoire, covering 1,948km2.

Exore claims Côte d’Ivoire is an 'established and proven jurisdiction for exploration, permitting and mine development, with an attractive fiscal regime and mining code.' While the country has seen 5 gold mines developed over the past 10 years with several recent additional +1Moz gold discoveries at resource definition/feasibility stage, we were keen to ask about the current operational environment; specifically, the surge of terrorist activity regarded by the UN as 'unprecedented' in the Sahel (West Africa) in their neighbouring countries of Mali and Burkino Faso. Is this an investable jurisdiction right now? Find out what Tremain has to say.

Exore Resources' flagship asset is right on the border with Burkina Faso, a country that has descended into chaos, with hundreds dead and around 650,000 citizens displaced at the hands of ISGS, Ansar ul-Islam, Boko Haram and al Qaeda amongst others. Tremain is adamant that while this is a situation they are monitoring "very closely," it is not one that will affect their operations. Tremain points to the lack of attacks in the Côte d’Ivoire, in addition to the strong government as reasons for investors to feel reassured. He also speaks about the heavy local military presence in the area, supported by the French government. Exore Resources itself does not employ security.

Exore Resources stated it would deliver a Maiden Resource of c. 400,000oz - 500,000oz in September, 2019 to show analysts the company is progressing. We questioned the benefit of doing so at the time. It didn't in the end deliver a Maiden Resource. Tremain explains that while the company didn't deliver, plenty of work has been done, and Exore Resources intends to make its Maiden Resource larger after conducting additional drilling. Tremain claims shareholder feedback was also a big factor, with shareholders allegedly saying they were very pleased with drilling results and wanted to see continued drilling. The overall strategy is to define a +2Moz resource. Tremain claims the Maiden Resource would have been an interim step rather than a true reflection of Exore Resources' potential.

How has the market responded to this strategy? The share price was AU$0.07 this time last year, but now sits at AU$.06. Has all this drilling actually added value? The market cap stands at AU$36.84M. Tremain has work to do.

Exore Resources' recent drill results were good, but it appears there are question marks elsewhere; does the management team have what it takes to get this resource out of the ground economically? Tremain's "surprise" at the falling share price speaks volumes. We wait to see how they can change this trend.

Exore Resources recently went to market last 2019, raising AUS$10M at AUS$0.085. Around 80% of this investment came from institutional Gold investors. Exore Resources has spent AUS$8M in Côte d’Ivoire. How much has actually gone into the ground? Tremain says 90%, so why hasn't the share price gone up? He is scratching his head a little, especially given the drill results.

The new strategy is drilling, but what is the end game? Tremain states he intends Exore Resources to develop a mine and go into production on a large scale, standalone Resource.

Company page: https://www.exoreresources.com.au/ 

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