Asara Resources has completed a A$25 million placement to accelerate exploration at its flagship Kada Gold Project in Guinea, with initial drilling confirming high-grade gold continuity and new deeper mineralisation zones.
- A$25 million placement completed to fund expanded exploration
- Phase 1 drilling at Massan Deposit confirms high-grade gold continuity
- New zones of deeper mineralisation discovered at Massan
- Regional soil sampling initiated at Bamfele Permit
- Discussions underway to divest non-core Paguanta project in Chile
Capital Raise Fuels Exploration Ambitions
West African gold explorer Asara Resources Limited has bolstered its financial position with a successful A$25 million placement, underpinning an expanded exploration program at its flagship Kada Gold Project in Guinea. This capital injection reflects strong investor confidence in the company’s strategy to grow its mineral resource base and advance its exploration activities.
Encouraging Drilling Results at Massan Deposit
The ongoing Phase 1 drilling campaign at the Massan Deposit has delivered promising early results, confirming the continuity of high-grade gold mineralisation. Notably, the drilling has extended the mineralisation envelope down-dip and uncovered new zones of deeper mineralisation, suggesting the potential for a larger resource than previously estimated. Key intersections include multiple intervals exceeding 1 g/t gold, with some zones showing grades above 4 g/t over significant widths.
Expanding Regional Exploration Efforts
Beyond Massan, Asara has intensified its regional exploration activities, initiating a comprehensive geochemical soil sampling program on the Bamfele Permit. Despite seasonal challenges such as limited access during the rainy season, the company has completed approximately one-third of the planned 1,793 sample points. The recent acquisition of a tractor-mounted auger drilling rig further enhances Asara’s capacity to rapidly test priority targets across its licenses.
Strategic Asset Management in Chile
While focusing on its West African assets, Asara is progressing discussions to divest its non-core Paguanta copper and silver-lead-zinc project in Chile. This move aligns with the company’s strategy to concentrate resources on the Kada Gold Project. Meanwhile, at the adjacent Loreto Copper Project, Asara’s joint venture partner Teck Resources Chile continues community engagement efforts to facilitate project access.
Strong Financial Position and Community Engagement
Asara ended the quarter with a robust cash balance of A$23.01 million, providing a solid runway for ongoing exploration and operational activities. The company also remains committed to fostering positive relationships with local communities around Kada, emphasizing employment opportunities and training for local talent as part of its sustainable development approach.
Bottom Line?
Asara’s strengthened balance sheet and promising drilling results set the stage for a pivotal year in advancing the Kada Gold Project’s resource potential.
Questions in the middle?
- How will Phase 2 drilling at Massan target strike extensions impact the overall resource size?
- What are the timelines and terms anticipated for the divestment of the Paguanta project?
- How might ongoing community engagement influence operational progress and permitting in Guinea?