How Arika’s 108km² Tenement Acquisition Could Reshape Leonora Gold Prospects

Strategic Expansion in a Historic Gold District

Arika Resources Limited (ASX – ARI) has taken a decisive step to bolster its presence in the highly competitive Leonora gold district of Western Australia by entering into a binding agreement to acquire approximately 108 square kilometres of exploration tenure from Iris Metals Limited. This acquisition significantly enlarges Arika’s footprint at the Kookynie Gold Project to around 150 square kilometres, making it the second largest landholder in the district, trailing only Genesis Minerals.

The newly acquired tenements are strategically located to connect Arika’s existing Ithaca and Champion prospects with the nearby Ulysses Gold Operation, a 2.23 million ounce gold project operated by Genesis Minerals. This contiguous landholding covers a well-established high-grade gold corridor with a rich history of production and numerous historical drill intercepts, yet it has seen minimal modern exploration for over two decades.

Untapped Potential in Underexplored Ground

Despite the historical significance of the area, including notable production from prospects such as Rise & Shine, Lily, and Treasure Whale, much of the tenure has remained dormant due to fragmented ownership and limited exploration activity since the early 2000s. Arika’s Managing Director, Justin Barton, highlighted the importance of this acquisition as a major growth milestone, emphasizing the potential to unlock value through modern exploration techniques in a district known for consistent high-grade gold mineralisation.

The geological setting is compelling, with mineralisation hosted in structurally controlled quartz veins and sheared ultramafic rocks within the Norwood–Ulysses Shear Zone. The acquisition also includes tenure located about 35 kilometres west of Kookynie, which remains largely unexplored despite its proximity to recent high-grade workings.

Deal Structure and Next Steps

The acquisition deal involves a combination of cash payments totaling $435,000, reimbursement of recent tenement costs, and the issuance of 15 million Arika shares to Iris Metals, subject to escrow arrangements. Completion is expected within 45 days, contingent on customary conditions precedent.

Arika is already advancing its exploration agenda with a 10,000-metre drilling program underway at Kookynie, aiming to leverage the expanded landholding to identify new gold resources and extend known mineralisation. The proximity to existing processing infrastructure and the shallow nature of historical mineralisation add to the project’s attractiveness for near-term development.

Positioning for Growth in the Northeastern Goldfields

This acquisition aligns with Arika’s broader strategy to build a significant gold footprint in Western Australia’s Northeastern Goldfields, complementing its Yundamindra Gold Project. By consolidating tenure in a prolific gold belt and linking up key mineralised trends, Arika is positioning itself to compete more effectively with established players and capitalize on the region’s rich endowment.

While historical production data is not compliant with current reporting standards and exploration success is never guaranteed, the combination of strategic location, historical high-grade intercepts, and ongoing drilling activity makes this a development worth watching closely.