This article discusses Cote d’Ivoire’s rise as a major gold exploration destination, driven by high-grade results and increasing government support for exploration permits. John Forwood highlights several companies capitalizing on the favorable geology and opportunities in the region, contrasting its potential with the challenges faced in other West African nations.
Welcome to the Ten-Bagger segment, where John Forwood, Chief Investment Officer of Lowell Resources Fund, explores the valuable sectors within the ASX resources market. This month, he examines Cote d’Ivoire, highlighting its emergence as a premier gold exploration jurisdiction amidst rising gold prices approaching US$3000 per ounce due to increased safe-haven demand.
Investors are increasingly inclined to select locations with minimal risks for their investments. Consequently, West Australian gold producers often command premium multiples, overshadowing West African stocks that are burdened with an ‘African discount’, despite profitable ventures such as West African Resources (ASX:WAF) and Perseus Mining (ASX:PRU). However, astute investors can recognize the potential beyond these stereotypes.
It is essential to understand that West Africa is not uniform in its challenges. While Mali and Burkina Faso pose obstacles due to political instability, Cote d’Ivoire has transformed into a fertile landscape for junior exploration investments. Previously known as a mining pariah following its 2011 civil war, Cote d’Ivoire has attracted a significant influx of ASX-listed explorers to its capital, Yamoussoukro.
According to John Forwood, “Cote d’Ivoire seems to be the absolute flavour of the month; if you are not in the WA Goldfields, then Cote d’Ivoire is a pretty good second prize.” Numerous ASX companies are reporting high-grade results from their explorations in Cote d’Ivoire, and this trend is likely to continue.
Exploration in Cote d’Ivoire may soon become even more accessible. Although agricultural and urban activities have degraded its forests, Forwood notes a recent trend of government approval for exploration permits in forested regions, mentioning, “Companies which have sort of been sitting on dormant applications in these highly prospective Birimian greenstone areas, those applications are moving through the cadastre system, and some of them are getting granted.” Investors may thus anticipate new high-grade projects emerging from previously untapped forestry areas.
Recently, Many Peaks Minerals (ASX:MPK) notably increased its shares by over 13% following a successful drilling at the Ferké gold project, with commendable intercepts reported from shallow depths. This trend is representative of the exciting geological potential in Cote d’Ivoire. Forwood provides examples of promising companies in the region, such as Turaco Gold (ASX:TCG), which is expected to announce resource upgrades, indicating success in their high-grade explorations.
John Forwood expresses confidence in the potential of companies like Aurum Resources (ASX:AUE), which is emulating successful strategies similar to those used by Caigen Wang with Tietto Minerals, previously transforming the company into a significant player. By acquiring Mako Gold and its 868,000oz Napié gold project, Aurum is well-positioned for rapid resource development at significantly reduced drilling costs.
Forwood also shares enthusiasm for Many Peaks, stating, “Some cracking grades there, and it looks like they’ve got some decent strike length probably at Ferké.” He regards the team at Famien Resources as having a great track record in Cote d’Ivoire, given their success with earlier projects.
The perspectives expressed in this article originate from the interviewees and do not represent the views of Stockhead. It is important to note that Stockhead does not offer any financial product advice. Although Many Peaks Minerals is a Stockhead advertiser, it did not sponsor this article.
In summary, Cote d’Ivoire has emerged as a significant destination for gold exploration, offering high-grade results and a favorable investment climate. John Forwood emphasizes the opportunities within the region, highlighting successful companies and promising geology. The increasing approval of exploration permits further enhances the attractiveness of this jurisdiction for potential investors, suggesting that Cote d’Ivoire might continue to thrive in the global gold exploration landscape.
Original Source: stockhead.com.au
