Asara Resources Accelerates Kada Gold Project with New Drilling Plans

Renewed Focus on Kada Gold Project

Asara Resources Limited (ASX: AS1) has reignited its exploration efforts at the Kada Gold Project in Guinea, marking a significant step forward for the company’s flagship asset. After a period of relative dormancy, the company has appointed experienced mining professionals Matthew Sharples and Daniel Tucker as senior technical consultants, bolstering its technical team and driving the resumption of on-ground activities.

The quarter ending 31 December 2024 saw a comprehensive structural mapping exercise across the Massan Resource Area, where approximately 400 geological structures were identified. These structures predominantly align along three major trends, north-south, northeast-southwest, and east-west, providing critical insights into the mineralisation controls that will inform the upcoming drilling campaign.

Innovative Mapping and Data Integration

Asara has integrated modern technology into its exploration toolkit by deploying an enterprise-level drone to capture high-resolution aerial imagery. This photogrammetric data supports detailed orthophotos and 3D elevation models, enhancing the geological understanding of the project area. Concurrently, the company is transitioning to the Seequent MX Deposit cloud-based geological database, standardising logging protocols and re-logging over 5,600 metres of drill core and reverse circulation chips to ensure data consistency ahead of drilling.

Strategic Drilling Program in the Pipeline

With structural data in hand, Asara has engaged Micon International to conduct a drill hole spacing and orientation review. This analysis is crucial given the complexity of the mineralised veins, which exhibit up to four distinct orientations. Micon’s work aims to optimise drill design to increase confidence in the central Massan Mineral Resource and extend the resource footprint north, south, and at depth. The company targets commencing this infill drilling program in the March 2025 quarter, a move that could materially enhance the existing Mineral Resource Estimate of 30.3 million tonnes at 1.0 g/t gold, containing approximately 923,000 ounces of gold.

Progress on Asset Rationalisation and Corporate Updates

Parallel to exploration, Asara is advancing the divestment of its non-core gold assets in Burkina Faso. The sale of the Kouri and Babonga projects to BIC West Africa Limited for US$2.2 million is in its final stages, pending ministerial approval. The company has already received tax clearance and an initial payment, with the transaction’s longstop date extended to 31 March 2025 to accommodate regulatory timelines.

Meanwhile, Asara continues to engage with local communities around Kada, fostering relationships essential for sustainable project development. Environmental stewardship is also a priority, with baseline studies initiated, including the installation of a weather station at the Niandankoro Camp.

Financial Position and Outlook

Asara ended the quarter with a healthy cash balance of A$2.8 million, supporting ongoing exploration and corporate activities. The company reported exploration expenditure of A$414,000 during the quarter, reflecting its commitment to advancing the Kada project. With drilling plans imminent and asset sales progressing, Asara is positioning itself to unlock further value from its West African portfolio.