Asara Resources has kicked off Phase 1 drilling at its Massan Deposit in Guinea’s Kada Gold Project, while resolving a key legal dispute in Chile and maintaining a solid cash position of A$3.2 million.
- Phase 1 Reverse Circulation drilling commenced at Massan Deposit
- Re-logging of historical drill core and chips completed
- Geological database migrated to cloud-based Seequent MX Deposit system
- Successful settlement of Chilean Loreto Project litigation with US$100,000 received
- Strong cash balance of A$3.199 million at quarter end
Exploration Momentum Builds at Kada Gold Project
Asara Resources Limited (ASX, AS1) has advanced its flagship Kada Gold Project in Guinea with the commencement of Phase 1 Reverse Circulation (RC) drilling at the Massan Deposit. This drilling campaign, planned for 11,500 metres initially, aims to infill existing drilling data, boost geological confidence, and explore extensions of known mineralised zones. Despite the onset of the rainy season, drilling has continued with a focus on diamond core drilling to deepen understanding of the deposit.
Complementing the drilling, Asara completed an extensive re-logging exercise of over 16,600 metres of RC chips and 1,680 metres of diamond core. This work not only aligns historical data with current logging standards but also serves as a training platform for junior geologists, enhancing the company’s technical capacity on the ground.
Technological Upgrades and Regional Exploration
In a significant operational upgrade, Asara migrated its geological database to the cloud-based Seequent MX Deposit system, improving data management and accessibility. This move supports ongoing and future exploration activities, including drone surveys and soil sampling campaigns designed to identify new gold targets within the largely under-explored 150km Kada project area.
During the quarter, drone surveys covered nearly 90 line-kilometres, identifying multiple informal artisanal workings for follow-up structural mapping. Soil sampling is scheduled to commence in the September quarter, focusing on areas south of Massan to test open gold anomalies and expand the regional geochemical dataset.
Legal Resolution and Strategic Asset Focus
Asara successfully concluded a protracted legal dispute in Chile concerning the Loreto Project. The out-of-court settlement established a new holding company for the project and included a cash payment of US$100,000 to Asara. This resolution removes a significant overhang and allows the company to focus on advancing its core assets.
Meanwhile, Asara is actively seeking to divest its non-core Paguanta copper and silver-lead-zinc project in Chile, which remains on care and maintenance. This strategic focus underscores the company’s commitment to prioritising its West African gold assets, where it sees considerable upside potential.
Financial Position and Outlook
Asara closed the quarter with a robust cash balance of A$3.199 million, supporting ongoing exploration and operational activities. Exploration expenditure for the quarter was approximately A$1.388 million, reflecting the company’s active drilling and field programs. With two quarters of funding estimated at current burn rates, Asara appears well-positioned to sustain its exploration momentum into 2026.
Community engagement remains a priority, with Asara continuing to build relationships and employ local talent around the Kada project, fostering goodwill and operational stability.
Bottom Line?
Asara’s drilling progress and legal clarity set the stage for critical assay results and potential resource growth in the coming quarters.
Questions in the middle?
- What initial assay results will the Phase 1 Massan drilling yield, and how might they impact resource estimates?
- How quickly can Asara divest its Chilean non-core assets, and what financial impact will this have?
- Will the rainy season affect the drilling schedule or exploration timelines significantly?