Arika Resources Strengthens Pennyweight Point with High-Grade Drilling and Full Project Control

Pennyweight Point Drilling Confirms Expanding High-Grade Gold Zones

Arika Resources (ASX:ARI) has reinforced the potential of its Yundamindra Gold Project with a series of compelling assay results from its Pennyweight Point prospect. The March 2026 quarter saw the company report multiple thick gold intercepts, including a standout 21-metre intercept grading 4.65 grams per tonne (g/t) gold from 252 metres depth, featuring high-grade internal zones up to 19.39 g/t Au. These results extend the known mineralisation down-plunge and down-dip, confirming continuity to vertical depths of at least 250 metres with indications of increasing grade at depth.

Early 2026 drilling has continued this momentum, with hole 26AYRC004A delivering 33 metres at 1.28 g/t Au from 149 metres, including a 15-metre zone grading 2.39 g/t Au. This hole was strategically drilled midway between two previously reported holes, effectively filling a critical gap and demonstrating a thick, continuous mineralised zone extending over at least 350 metres strike length. Importantly, the drilling also intersected multiple parallel lodes adjacent to the main Pennyweight Point lode, suggesting a more complex and potentially larger mineralised system than previously understood.

Gold mineralisation at Pennyweight Point is notably accompanied by elevated silver and copper levels, hosted within a structurally complex setting involving granite, basalt, and intermediate porphyry. Near-surface oxide zones have also been expanded, with extensional drilling confirming wide mineralisation starting from shallow depths, including a 66-metre intercept at 0.58 g/t Au from 8 metres.

These findings build on a strong foundation laid by 2025 drilling, which included an extension of hole 25AYRC148 to 329 metres, doubling the width of previously reported mineralisation. The company’s Managing Director, Justin Barton, highlighted that these results underpin Arika’s strategy to advance Pennyweight Point towards a maiden Mineral Resource Estimate in the near term, with ongoing drilling expected to further define the deposit’s scale and grade profile. This drilling campaign follows a series of thick high-grade intercepts reported in recent months, reinforcing the project's growing significance within the region’s prolific goldfields. The continuity and depth extensions of mineralisation at Pennyweight Point are consistent with the company’s earlier reports of thick, high-grade gold zones at YundamindraArika Resources Extends Thick High-Grade Gold Zones at Yundamindra and Arika Resources Uncovers Thick High-Grade Gold Zones at Pennyweight Point.

Consolidation of Full Ownership in Yundamindra and Kookynie Projects

In a strategic move to streamline operations and accelerate project development, Arika has entered into a binding agreement to acquire the remaining 20% joint venture interest held by Nex Metals Explorations Limited in both the Yundamindra and Kookynie Gold Projects. This transaction, pending shareholder and regulatory approvals, will consolidate Arika’s ownership to 100%, removing joint venture complexities and enhancing operational flexibility.

The consideration package includes a cash payment of approximately A$2.5 million, alongside the issuance of nearly 59 million fully paid ordinary shares subject to escrow, and 12 million deferred consideration shares with escrow linked to resource milestones. The deferred shares’ escrow conditions are tied to achieving indicated resource milestones of 250,000 and 500,000 ounces at specified cut-off grades, aligning shareholder interests with project advancement.

This consolidation follows Arika’s earlier announcements and capital raising efforts, including a $5.75 million placement completed in late 2025 and early 2026, supporting ongoing exploration and corporate activities. The company ended the quarter with a cash balance of $4.0 million and invested $1.57 million in exploration, reflecting a strong commitment to advancing its flagship assets. The acquisition deal and associated capital management underscore Arika’s strategic focus on building scale and value within Western Australia’s gold sector, consistent with prior disclosures on ownership consolidation and resource development plansArika Secures 100% Ownership of Yundamindra and Kookynie Gold Projects.

Advancing Exploration at Kookynie and Corporate Developments

Beyond Yundamindra, Arika has progressed evaluation and planning at the Kookynie Gold Project. An independent assessment by ERM has informed a successful Environmental Impact Statement (EIS) co-funding grant application, enabling deep diamond drilling to test extensions and repetitions of high-grade shoots within the Cosmopolitan lode and its structural linkages to the Altona lode system. The company has secured necessary approvals for drilling programs and anticipates site access and pad construction in the coming quarter.

Meanwhile, exploration at Arika’s Queensland projects remains on hold as the company prioritises its Western Australian gold assets. Corporate updates include the appointment of Ms Kate Sainty as Joint Company Secretary, bringing extensive governance and financial management experience, alongside continued engagement with Automic Group for secretarial services.

Arika’s steady cash position, active drilling programs, and strategic ownership consolidation position it well to capitalise on exploration success and move towards resource definition. The company’s focus on high-quality gold assets with significant upside potential aligns with broader trends in the Australian gold exploration sector, where consolidation and resource growth remain key value drivers.