Aldoro Faces Asset Sale Setback, But Strengthens Drilling Capacity and Exploration

Kameelburg Drilling Accelerates with New Rig and Expanded Program

Aldoro Resources Ltd (ASX, ARN) has significantly advanced its flagship Kameelburg Rare Earth Elements (REE) and Niobium project in Namibia by commencing an expanded Phase II diamond drilling program. The company plans to drill an additional 11,000 metres focused on resource expansion, metallurgical bulk sampling, and preparation for a JORC resource upgrade. This follows promising high-grade niobium intercepts, including assays up to 4.14% Nb₂O₅, which underpin Aldoro’s confidence in the deposit’s potential scale.

Central to this acceleration is Aldoro’s acquisition of a Diamec Smart 8 fully hydraulic drill rig, capable of drilling to depths of 1,500 metres per hole. The rig was secured through a drill-for-equity agreement with AMW Mining Pte Ltd, which also provides drilling services at half the prevailing Namibian market rates and eliminates mobilisation and standby fees. This arrangement not only reduces operational costs but also allows Aldoro to preserve cash by issuing shares in lieu of some drilling payments, subject to shareholder approval.

Omuronga Exploration Progresses with Geophysical Surveys and Soil Sampling

Meanwhile, exploration at the Omuronga Heavy REE Project continues to gather momentum. A detailed ground magnetic survey has identified a circular magnetic anomaly approximately 1.4 kilometres in diameter, indicative of a concealed carbonatite intrusive body. Soil sampling is underway to further delineate ionic-style heavy rare earth element mineralisation near surface and primary light rare earth mineralisation at depth. These findings suggest Omuronga could be a compelling drill target, potentially complementing Aldoro’s Kameelburg project within the same geological belt.

Asset Sale to Sultan Resources Withdrawn; Coppermoly Deal Advances

Aldoro has withdrawn its previously announced asset sale to Sultan Resources Limited after Sultan shareholders rejected the issuance of consideration shares. As a result, Aldoro retains its interests in the Niobe, Narndee, and EPL7895 projects and is exploring alternative value-generating options for these assets. Conversely, the sale of the Wyemandoo Project to Coppermoly Limited remains on track, contingent on the divestment of related interests. Aldoro is actively managing the separation of these assets to facilitate the transaction.

Financial Position and Outlook

During the quarter, Aldoro reported exploration expenditure of $389,000, primarily on drilling and sampling activities. The company raised $234,000 through the exercise of options and maintains a $1 million unsecured financing facility with a director, which remains largely undrawn. Cash and equivalents stood at $125,000 at quarter-end, with total available funding estimated to cover approximately 1.6 quarters of operations. The company expects to continue managing its cash flow prudently while advancing its exploration programs.

With drilling underway and strategic partnerships in place, Aldoro is positioning itself to refine and potentially expand its resource base at Kameelburg, while advancing exploration at Omuronga. The coming months will be critical as assay results and further drilling data emerge, shaping the company’s development trajectory.