Askari Completes Due Diligence on 460km² Ethiopian Gold Project Portfolio
Askari Metals has completed due diligence on its acquisition of the Adola Greenstone Belt Gold Projects in Ethiopia, positioning itself for growth in a prolific but underexplored gold region.
- Completion of legal and technical due diligence on Adola Gold Projects
- Portfolio covers 460 km² in a highly prospective gold belt near major deposits
- Presence of gold-bearing quartz veins and artisanal mining confirmed
- Acquisition aligns with Askari’s strategy to build a tier-1 gold portfolio in Ethiopia
- Further exploration planned to unlock full project potential
Strategic Acquisition in a Prolific Gold Belt
Askari Metals Limited (ASX: AS2) has taken a significant step forward in its African exploration ambitions by completing the legal and technical due diligence on its acquisition of the Adola Greenstone Belt Gold Projects in southern Ethiopia. This portfolio, spanning approximately 460 square kilometres, lies within the Arabian-Nubian Shield, a geological region renowned for hosting multi-million-ounce gold deposits.
The Adola Greenstone Belt is historically notable for its gold production, with nearby mines such as Lega Dembi and Sakaro having collectively produced over three million ounces of gold. Despite this, the region remains underexplored by modern standards, presenting a compelling opportunity for Askari to leverage contemporary exploration techniques.
Due Diligence Highlights and Geological Potential
Historic exploration data from nearby projects, including results from Alecto Minerals plc, reinforce the prospectivity of the area, with rock chip samples grading up to 47 grams per tonne of gold. However, Askari’s due diligence was limited in scope and not systematic, indicating that comprehensive exploration programs will be essential to fully understand and realise the projects’ value.
Aligning with a Growth-Oriented African Strategy
Executive Director Gino D’Anna emphasised the strategic importance of this acquisition, highlighting Askari’s established African-focused exploration team and the company’s ambition to assemble a tier-1 gold portfolio in Ethiopia. The acquisition not only expands Askari’s footprint in a fertile gold region but also positions the company to capitalise on Ethiopia’s pro-mining jurisdiction, which offers a modern legal framework conducive to foreign investment.
Askari is concurrently assessing other advanced gold projects in Ethiopia, signalling a broader strategy to consolidate significant gold assets in the region. This approach could enhance the company’s profile and attract further investor interest as it moves from exploration towards potential development.
Looking Ahead: Exploration and Community Engagement
With settlement of the acquisition imminent, Askari plans to advance exploration activities, including detailed sampling, trenching, and drilling, to delineate mineral resources. The company is also actively engaging with local Indigenous communities to foster partnerships and ensure responsible development.
While the initial due diligence results are promising, the true economic potential of the Adola Greenstone Belt projects will depend on forthcoming assay results and systematic exploration efforts. Investors will be watching closely as Askari transitions from acquisition to active exploration in this underexplored but highly prospective gold belt.
Bottom Line?
Askari’s acquisition sets the stage for a bold exploration push in Ethiopia’s gold-rich Adola Belt, with the next phase of drilling poised to reveal the true scale of opportunity.
Questions in the middle?
- What will initial assay results reveal about the grade and extent of mineralisation?
- How will Askari balance exploration ambitions with community and environmental considerations?
- What impact will this acquisition have on Askari’s valuation and investor sentiment?