Asara Expands Siguiri Basin Footprint to Nearly 300km² with Key Acquisition

Strategic Expansion in Guinea’s Siguiri Basin

West African gold explorer Asara Resources Limited (ASX, AS1) has taken a decisive step to broaden its presence in Guinea’s prolific Siguiri Basin by entering into a binding Heads of Agreement to acquire 100% of Arafura Ouest PTE Ltd. This Singaporean entity, through its Guinean subsidiary Ara Exploration SARLU, holds two highly prospective gold exploration permits, Damissa Koura and Kankan West.

The acquisition notably expands Asara’s exploration portfolio in the region to around 296 square kilometres, directly adjoining its flagship Kada Gold Project. This move not only increases the company’s landholding but also consolidates its position in one of West Africa’s most promising gold provinces.

Historical Drilling Highlights at Damissa Koura

Damissa Koura, the more advanced of the two permits, lies immediately east of the Kada Project and benefits from historical exploration conducted by Newmont Corporation between 2009 and 2011. Newmont’s reverse circulation and air core drilling uncovered broad zones of deep oxide gold mineralisation, with significant intercepts such as 4 metres at 8.0 grams per tonne and 16 metres at 3.0 grams per tonne gold.

These mineralised zones extend over more than a kilometre and remain open both along strike and at depth, suggesting considerable upside potential. The area also supports extensive artisanal mining, indicating the presence of economically viable gold mineralisation near surface. Asara has already completed reconnaissance mapping and grab sampling to verify these findings.

Exploration Plans and Resource Growth Potential

Asara is actively conducting Phase 1 and 2 drilling campaigns, aiming to update the mineral resource estimate for Damissa Koura and potentially incorporate these results into its broader resource base. The company plans to deploy cost-effective auger drilling techniques, leveraging equipment currently operating on adjacent permits, to delineate additional targets beneath laterite cover.

The Kankan West permit, located approximately 70 kilometres south of Kada, remains largely unexplored but is strategically positioned near several multi-million-ounce gold deposits operated by other companies. Initial exploration will focus on detailed mapping and soil sampling to identify new targets for follow-up drilling.

Transaction Terms and Next Steps

The acquisition is subject to customary conditions including legal, technical, and financial due diligence, regulatory approvals in Guinea and Singapore, and the establishment of a 2% net smelter royalty payable to the vendors. Upon completion, Asara will also appoint the vendors as consultants for a transitional period, issuing them shares subject to escrow.

CEO Matt Sharples expressed optimism about the deal, highlighting the strategic fit of the permits with Asara’s existing assets and the promising historical data that underpins the exploration potential. The company’s focus remains on advancing the Kada Gold Project and unlocking value through resource growth.