This is a very brief summary of what was a lengthy interview. Don’t rely on this summary. Watch the full interview which is linked at the end of this post.
Please note that this company has paid for the creation of this content. The Resource Talks interview rules are simple.
The companies, albeit paying or non-paying, get no questions upfront, no questions off the table, and no editing rights.
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Time to Read: 9 minutes
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Awalé Resources Company Overview
Awalé Resources Ltd. (TSX-V: ARIC) is a junior exploration company focused on discovering and developing high-grade gold and copper resources in West Africa, particularly in Côte d’Ivoire. The company is advancing a portfolio of highly prospective targets, with a strategic partnership with Newmont Corporation, allowing it to leverage both financial and technical resources to push its projects forward. Awalé Resources aims to create significant value through systematic exploration and disciplined project management. They currently have over $10M CAD in treasury.
This news release adds another piece to the puzzle of our larger geological thesis. We’re not just looking at isolated high-grade zones but trying to understand the continuity and extent of a broader mineralized system. The results we’ve reported, particularly the 580 gram-meters from hole 88, are highly encouraging and suggest that we are dealing with a significant gold-bearing system.
Andrew Chubb, CEO Awalé Resources
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Awalé Resources CEO Interview Summary
What’s happening with the stock price, and what’s the market not liking? Am I missing something?
I’m not entirely sure what’s driving the recent movement in the stock price. We’re actually very pleased with the results we’ve reported, particularly with the continuity of high-grade mineralization at Charger. We hit 580 gram-meters of gold at about 150 meters deep, which is significant by any measure, even if it doesn’t match the 1,500 gram-meters we reported in hole 83. It’s important to remember that mineralization of this caliber is still very high grade.
However, the market often reacts to more than just the headline numbers. It’s possible that some investors expected an even higher grade, given our past results, or perhaps they were looking for more immediate confirmation of a larger resource. But from our perspective, every hole drilled gives us more data, and we are building a comprehensive understanding of the mineralized system. The share price fluctuations are something we don’t focus on daily; our goal is to develop the project in a way that maximizes long-term value.
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Why was there a lower grade in hole 85 compared to the previous high-grade results?
Hole 85 is an interesting case. It was drilled as a western step-out from hole 83, and it intercepted the target breccia system, but the grade was lower compared to the exceptionally high grades we saw in hole 83. Specifically, hole 85 returned 21 meters at 1.7 grams per ton, with a four-meter interval at nearly 17 grams per ton. While this is still a good result, the variability in grade is typical of gold systems, especially those with visible gold.
In systems like this, you often see a lot of internal variability due to factors such as the size and distribution of clasts within the breccia. For example, in this breccia, larger clasts might be associated with less matrix and, consequently, lower grades. Conversely, areas with smaller clasts and more matrix tend to be richer in mineralization. This kind of variability means that while hole 85 didn’t hit the same high grades as hole 83, it still contributes valuable data to our understanding of the system’s geometry and mineralization patterns.
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What unanswered question is this news release answering for the larger thesis?
This news release adds another piece to the puzzle of our larger geological thesis. We’re not just looking at isolated high-grade zones but trying to understand the continuity and extent of a broader mineralized system. The results we’ve reported, particularly the 580 gram-meters from hole 88, are highly encouraging and suggest that we are dealing with a significant gold-bearing system.
What this news release does is reinforce the idea that Charger is part of a large, complex system that could host multiple high-grade zones. It’s also helping us refine our geological model. We’re starting to see more continuity in mineralization at depth, which is crucial for understanding the potential size and scale of the deposit. This release doesn’t answer all the questions, but it brings us closer to defining the full extent of the mineralized system.
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What’s the correlation between the breccia matrix composition and the high-grade mineralization?
We’ve been closely examining the relationship between the breccia matrix and the mineralization, and what we’re seeing is that smaller clast sizes within the breccia are generally associated with higher grades of gold. The matrix composition is also variable—some areas have more chlorite and clinopyroxene, while others are dominated by silica or quartz.
In hole 88, for instance, we saw a much higher concentration of quartz in the matrix, which initially led us to believe that this might result in lower grades. However, the opposite was true—hole 88 produced very high grades, which challenges our previous assumptions and forces us to rethink the controls on mineralization. It seems that the degree of brecciation and the presence of a more extensive matrix are more critical factors in determining grade than we initially thought.
This understanding is essential because it helps us predict where the higher-grade zones might be located within the breccia. If we can correlate certain matrix compositions and clast sizes with higher grades, it will significantly improve our ability to target future drill holes.
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Is Charger now more of a size story rather than a grade story?
Charger has always been a complex target, and we’re still working to fully understand it. The high grades we’ve reported so far are certainly encouraging, but as we drill more holes, we’re starting to see that this system has the potential to be both high-grade and large in scale. The breccia seems to follow a pre-existing structural framework while also creating its own, which adds a layer of complexity to our exploration.
That said, if the overall system averages out at over 10 grams per ton, we don’t need a massive volume to achieve significant gold content. We’re continuing to explore both the size and the grade of the system. Right now, it’s about finding the balance between these two factors. We’re improving our understanding of the system’s geometry and structural controls, which should help us better define the size of the deposit.
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What’s the update on BBM? Are you more excited about BBM than Charger?
BBM is just as exciting as Charger, if not more so, because we have a much better handle on the structure and plunge of the mineralization there. The recent drilling at BBM was designed to test down-plunge from hole 74 and along strike from other mineralized zones we’ve previously defined. The visuals from the drilling are very promising—the widths of mineralization are as wide or wider than what we’ve seen in previous holes, which is a good indicator of the system’s potential.
We’ve extended the core mineralized zone to over 800 meters and have seen encouraging widths of the right alteration and mineralization down plunge. This gives us confidence that BBM could move towards resource definition drilling in the near future. We’re also planning metallurgical studies, which is another step towards understanding the potential economics of this target. If everything goes as planned, we could be looking at a resource estimate by the end of next year.
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What happened with the two holes that didn’t hit mineralization at Charger?
Holes 86 and 87 were drilled as part of our exploration strategy to define the edges of the mineralized system at Charger. Hole 86 was drilled to the east of hole 83, and hole 87 was a step-back hole. Unfortunately, neither of these holes intercepted the breccia, but they did provide valuable information.
Not hitting the breccia in these holes helps us understand the boundaries of the system. It suggests that the breccia is moving or plunging toward the west, which is consistent with our evolving geological model. While it’s always disappointing not to hit mineralization, these holes still contribute to our understanding of the system’s geometry and help us refine our targeting for future drilling.
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How do these results help you understand the geometry of Charger?
These results are critical for refining our understanding of Charger’s geometry. Every hole that we drill, whether it hits mineralization or not, provides data that feeds into our geological model. The fact that we didn’t intercept the breccia in holes 86 and 87, for example, helps us understand the orientation and plunge of the system.
We’re starting to see that the breccia may be following a northeast orientation at depth, which is consistent with other structural features we’ve identified in the region. Understanding these structural controls is key to predicting where the mineralization is likely to occur. As we gather more data, we can refine our drilling strategy and improve our chances of hitting high-grade zones in future programs.
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What’s the main unanswered question for Charger now?
The big question for Charger remains its full extent and orientation. We’ve had some excellent results so far, but we’re still piecing together how the breccia system is structured at depth. We suspect that magnetic geophysics, combined with the susceptibility data we’ve recorded, will help us build a more accurate model.
Our goal is to connect the deeper mineralization we’ve intersected with the shallower zones and understand the continuity of the system. This will require more drilling, and we’re optimistic that the upcoming programs will provide the answers we need. Ultimately, we want to understand whether this system has the potential to host a large, continuous high-grade resource.
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What about the pending drill results from Charger and BBM?
We have four pending drill holes at Charger, which were drilled at the end of our most recent program. These holes were generally deeper tests of the breccia system, and we’re eager to see the results. We expect these results to be critical in confirming the continuity of the breccia at depth and helping us refine our geological model.
At BBM, we also have results pending from a series of holes drilled to test the down-plunge extension of the mineralized zone. Based on the visuals, we’re optimistic that these holes will confirm the extension of high-grade mineralization. We expect to receive and report these results over the next few months, with Charger results likely coming in by October and BBM results before that.
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How does the geochemistry at Lando compare to other targets?
Lando is a large geochemical anomaly that shares many similarities with our other targets, like BBM and Charger. The anomaly is already four kilometers long and remains open, which is highly promising. The geochemical signature at Lando includes gold, copper, molybdenum, and some silver, which is consistent with what we see at our other targets.
What’s particularly intriguing about Lando is the size of the anomaly and its potential to host a significant mineralized system. We plan to conduct more extensive RC drilling at Lando, using longer fences of holes to get a better understanding of the system. This will help us determine whether Lando has the same potential as BBM and Charger and guide our exploration strategy moving forward.
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Are there any updates on corporate development or staffing?
We’ve made some important additions to our team recently. Andrew Smith, who previously worked with us, has returned as VP Exploration. His expertise and familiarity with our projects make him a valuable asset as we move into more advanced stages of exploration. We’ve also added Adam Kashishian as VP Corporate Development. Adam brings significant experience in corporate strategy and investor relations, which will be crucial as we continue to grow the company.
We’re also looking to expand our local staff in Côte d’Ivoire, hiring additional project geologists and field assistants. We’re committed to hiring locally whenever possible, and as our exploration activities ramp up, we’ll be creating more full-time positions in the region.
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What is the current status of the geophysical modeling at Charger?
We’re currently working with geophysicists to model the low magnetic response we’ve observed in the breccia system at Charger. This involves creating a three-dimensional model based on the data we’ve collected from drilling and magnetic susceptibility measurements. The initial modeling has been promising, showing potential continuity at depth, but it’s still an unconstrained model.
One of the deeper holes we drilled in the second phase intercepted 100 meters of breccia at around 340 meters downhole, testing the model’s accuracy. While the results are still pending, the fact that we intercepted breccia at this depth is encouraging and suggests that the model could be a valuable tool for guiding future drilling.
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How do you address the variability in grade within the breccia system?
The variability in grade within the breccia system is something we’re continuing to study. It’s not unusual in gold systems, particularly those with visible gold, to see significant variations in grade over short distances. This is often due to the nature of the breccia itself—areas with larger clasts and less matrix tend to have lower grades, while areas with smaller clasts and more matrix are richer in gold.
Our approach is to drill more holes and collect more data to build a clearer picture of where the high-grade zones are likely to occur. Each hole gives us more information about the system’s internal structure and helps us refine our geological model. As we learn more, we can target our drilling more effectively and increase our chances of hitting high-grade mineralization.
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What are the next steps for the Charger and BBM targets?
For Charger, the next steps involve more drilling to test the continuity of the breccia system at depth and along strike. We’re also planning to incorporate the geophysical data we’re collecting into our targeting strategy. This should help us refine our understanding of the system’s geometry and improve our drill targeting.
At BBM, we’re looking at potentially moving towards resource definition drilling in the near future. The recent drilling has extended the core mineralized zone, and we’re seeing encouraging widths of mineralization at depth. We’re also planning metallurgical studies to better understand the economic potential of the deposit. If all goes well, we could have a resource estimate by the end of next year.
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How does the support from Newmont impact your exploration strategy?
Newmont’s support has been instrumental in allowing us to focus on our medium to long-term goals. With their financial backing, we don’t have to worry about short-term market fluctuations or raising funds in challenging market conditions. This gives us the freedom to conduct thorough, systematic exploration and to take the time needed to fully understand the geological systems we’re working with.
Newmont’s technical expertise is also a significant advantage. Their experience and resources allow us to access advanced geophysical and geochemical analysis tools, which are critical for refining our exploration models. Overall, Newmont’s involvement allows us to be more ambitious in our exploration programs and to pursue larger, more complex targets with confidence.
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Can you provide more details on the recent staff changes at Awalé Resources?
We’ve recently welcomed back Andrew Smith as VP Exploration. Andrew has a deep understanding of our projects and brings a wealth of experience to the team. His return is a significant boost as we move forward with our exploration programs.
In addition, we’ve added Adam Kashishian as VP Corporate Development. Adam’s role will focus on enhancing our corporate strategy, investor relations, and overall market presence. His experience in these areas will be invaluable as we continue to grow and seek to communicate our story more effectively to the market.
We’re also expanding our local team in Côte d’Ivoire, with plans to hire additional project geologists and field assistants. This is part of our commitment to supporting local communities and building a strong, capable team on the ground.
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How do you see the future of exploration at Awalé Resources?
The future of exploration at Awalé Resources is incredibly promising. We’re sitting on a portfolio of highly prospective targets, and with the support of Newmont, we have the resources and expertise to systematically explore these opportunities. Over the next few years, we expect to continue making significant discoveries and advancing our projects toward resource definition.
We’re also focused on building a strong pipeline of exploration targets. As we develop our current projects, we’re constantly looking for new opportunities and ways to expand our portfolio. With a strong team in place and a clear strategic vision, we’re confident that Awalé Resources will continue to grow and create value for our shareholders.
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Awalé Resources Full CEO Interview (VIDEO)
In this interview with Awalé Resources’ CEO, Andrew Chubb, we delve into the latest exploration results from the company’s Charger and BBM targets in Côte d’Ivoire. Chubb discusses the geological challenges and successes encountered, the implications of recent drilling results, and the broader strategic vision for Awalé’s exploration projects. Key points include the continuity of high-grade gold mineralization at depth, the evolving understanding of the Charger target’s potential size, and the disciplined approach the company is taking to maximize the value of its exploration efforts. Additionally, Andrew touches on the company’s financial position, staffing updates, and plans for future drilling campaigns.
