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Awalé Resources operates in northern Côte d’Ivoire. They recently published their initial MRE on a part of the project which is under a joint venture with Newmont (Newmont currently at 61%). This MRE consists of three deposits. BBM is the bulk of the resource, Charger is the high-grade quartz breccia, and Empire is seen as a small high-grade potential starter pit. The conversation centred on the just-released maiden mineral resource estimate showing 1.7 million ounces gold equivalent at roughly 1.7 g/t, the Newmont JV mechanics following that result, the upcoming PEA, and the path to a mining license application by mid-2027.
TL;DR
The maiden MRE landed at roughly 1.7 million ounces gold equivalent at just under 1.7 g/t (gold-only is slightly over 1.3 million ounces), which is in line with Andrew’s prior guidance of 1.5 to 2 million ounces at 1.5 to 2 g/t. Critically, this falls short of the 2 million ounce gold-only threshold that would have triggered Newmont’s option to move from 61 to 75 percent, meaning Newmont must now fund 100 percent of exploration to retain its interest. Charger came in just under 5 g/t versus internal grade-weighted expectations of around 7 g/t, with Andrew attributing the difference to mining shape optimisation and statistical capping. BBM dominates the resource, with about 75 to 80 percent in the open pit and 20 to 25 percent underground at a 1.34 g/t cut-off. The MRE is the data cut-off for a PEA targeted for June or July 2026, with PFS drilling already underway to support a mining license application by mid-2027. Awalé holds roughly C$17 million in cash to fund its 100 percent ground exploration program in parallel. Andrew told us Charger 2, Charger 3, and depth extensions at BBM will not be in the PEA but could make the PFS. Resource growth of 300,000 to 500,000 gold equivalent ounces is expected by PFS.
What have they done for shareholders lately?
Released the maiden MRE on the JV ground showing 1.7 million ounces gold equivalent at around 1.7 g/t across BBM, Charger, and Empire. Triggered the contractual mechanism that keeps Newmont funding 100 percent of exploration since the 2 million ounce gold-only threshold was not met. Started PFS-level drilling to support the mining license application. Continued metallurgical test work with samples shipped to lab in February 2026. Flew airborne gravity gradient surveys and ran a targeting exercise on the JV ground, now in the middle of an 8,000 to 10,000 metre aircore campaign on other targets within the JV property. On the 100 percent owned ground, the company is working toward drilling at Sadou before the wet season and follow-up drilling at Fremin.
How much money do they have and what are they spending it on?
About C$17 million in cash, all earmarked for the 100 percent owned ground exploration program since Newmont funds 100 percent of the JV expenditures going forward. Spending priorities on the 100 percent ground are team expansion (currently hiring additional people in Côte d’Ivoire), aircore drilling at Seydou and follow-up at Fremen, and corporate marketing including conferences in Zurich, London, Toronto, Cape Town, and a new addition in New York. No financing was discussed as upcoming. On the JV ground, Newmont controls the budget, and Andrew said that if Awalé held the project 100 percent he would be drilling more aggressively at BBM along strike for satellite deposits.
Upcoming catalysts
Technical: ongoing PFS drilling at BBM including underground potential and the steepening plunge interpretation; resource expansion drilling at Charger 2 and a possible Charger 3 to the northeast; brownfield extension drilling at BBM; full metallurgical results to feed the PEA; drilling at Charger margins to extend the top 400 metres of the resource. Operational: PEA publication targeted for June or July 2026; PFS data cut-off targeted for end of January 2027; mining license application targeted for mid-2027; PFS publication later in 2027; resource update next year targeting growth of 300,000 to 500,000 gold equivalent ounces. Corporate: aircore drill results from Newmont-funded targeting work across the JV ground; drilling results from 100 percent owned Sadou before the second wet-season peak and follow-up at Fremin in June; possible new strategic interest or off-take discussions after the MRE; potential corporate video to support marketing.
Risks
Newmont’s continued commitment to fund 100 percent of exploration depends on their willingness to keep going, and Awalé is constrained by Newmont’s global budget allocations. The PEA timeline is being driven by an administrative permit renewal deadline (a special renewal granted last year that gave them two years to produce feasibility studies and apply for a mining license), not by geological optimisation, which means the PEA will be based purely on inferred resources. Drill spacing of 100 metre pierce points at BBM, 40 by 20 metres at Charger, and 60 to 100 metres at Empire will need to tighten to 50 metres for indicated and 20 to 25 metres for measured before the PFS, requiring significant drill density increases and adding execution risk to the tight January 2027 cut-off. Charger has steeply dipping geometry that becomes increasingly difficult to drill from surface, requiring fan drilling from parent holes. Wet season constraints limit field activity for parts of the year. Metallurgy is not yet fully back, leaving recovery numbers provisional. The 10 year mine life at 100,000 to 150,000 ounces per year is not at Newmont scale, so Andrew acknowledged Newmont may not see this as a needle-moving asset long term, raising the question of whether they ultimately stay in or whether someone else ends up acquirer.
Awalé Resources CEO Interview
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