Funding Pressures Loom as Askari Metals Advances Burracoppin Upgrade and African Deals
Askari Metals has reported a significant 28% increase in its Burracoppin Gold Project resource, while advancing strategic acquisitions in Africa and completing a $1.1 million capital raise.
- 28% increase in Burracoppin Gold Project JORC Mineral Resource Estimate to 82,700 ounces
- High-grade gold intersections confirmed at multiple Burracoppin prospects
- Acquisition of Ethiopian gold projects and review of Tanzanian uranium assets underway
- Completed $1.1 million capital raising to fund African exploration and ongoing projects
- Board changes include appointment of Timothy Morrison and re-appointment of Gino D’Anna
Resource Upgrade at Burracoppin
Askari Metals Limited (ASX: AS2) has delivered a robust upgrade to its 100%-owned Burracoppin Gold Project in Western Australia’s Wheatbelt region, reporting a 28% increase in its JORC (2012) Mineral Resource Estimate (MRE). The updated resource now stands at 2.14 million tonnes at 1.2 grams per tonne gold (capped), containing 82,700 ounces of gold at a 0.55 g/t cut-off grade. This marks a meaningful step forward for the project, which lies just 15 kilometres west of Ramelius Resources’ Edna May Gold Mine, a significant regional producer.
The resource upgrade incorporates mineralisation across the Benbur-Christmas Gift, Easter Gift, and Lone Tree prospects, with drilling results confirming high-grade gold intersections, including 3 metres at 17.41 g/t Au from 73 metres at Easter Gift and multiple zones at Benbur and Christmas Gift. The company’s exploration efforts have also identified potential for further resource expansion, particularly between the Benbur-Christmas Gift and Easter Gift zones, supported by recent soil auger sampling and drone magnetic surveys.
Strategic African Expansion
Beyond Australia, Askari Metals is actively pursuing growth through acquisitions in Africa. Subsequent to the quarter, the company announced the acquisition of a portfolio of gold projects on the Adola Greenstone Belt in southern Ethiopia. This belt is a highly prospective and underexplored region, hosting multi-million-ounce gold deposits and situated near Ethiopia’s only modern gold mines. Askari is also reviewing additional gold opportunities in Ethiopia and uranium projects in Tanzania, aiming to leverage its African technical team’s expertise and diversify its resource base.
In Namibia, the company continues to advance its polymetallic Uis Project, focusing on tin, tantalum, rubidium, and lithium mineralisation. Recent re-interpretation of historical data has reinforced the project’s potential, which is strategically located adjacent to the operating Uis Tin Mine.
Capital Raising and Corporate Developments
To support its exploration and acquisition strategy, Askari Metals completed a strategic placement raising a total of A$1.1 million before costs during and subsequent to the March quarter. These funds are earmarked for advancing African exploration programs, ongoing work at the Uis Project, and general working capital.
Corporate changes include the appointment of Mr Timothy Morrison as a Non-Executive Director, the resignations of Mr Leonard Math and Mr Lincoln Ho from the board, and the re-appointment of Mr Gino D’Anna as Executive Director. These moves reflect a refreshed leadership team aligned with the company’s strategic focus.
Financial Position and Outlook
Askari Metals reported a cash balance of approximately A$118,000 at the end of March 2025, with exploration and evaluation expenditure of A$417,000 for the quarter. The company acknowledges the need to carefully manage its cash position, having reduced operating expenditures to preserve capital while continuing to deliver on its African exploration ambitions.
With significant inbound interest for the Burracoppin Gold Project amid a strong Australian dollar gold price environment, Askari is progressing discussions on potential transactions that could unlock additional shareholder value. The company’s dual focus on Australian gold and African polymetallic and uranium assets positions it to capitalize on diverse commodity markets.
Bottom Line?
Askari Metals’ Burracoppin resource upgrade and African acquisitions set the stage for a pivotal growth phase, but funding and execution risks remain key watchpoints.
Questions in the middle?
- What are the timelines and terms for potential transactions involving the Burracoppin Gold Project?
- How will Askari Metals manage its tight cash position while advancing multiple exploration fronts?
- What are the prospects and risks associated with the newly acquired Ethiopian gold projects and Tanzanian uranium assets?