Asara Resources Advances Kada Gold Project with Strong Drilling and Resource Expansion

Significant Drill Progress Expands Kada Gold Project Resources

Asara Resources Limited (ASX:AS1) has delivered a strong quarter at its Kada Gold Project in Guinea, completing 107 drillholes totalling 13,392 metres across its Phase 1 and Phase 2 growth programs. The drilling campaign focused on converting Inferred Mineral Resources to Indicated status at the Massan Deposit while materially expanding the Inferred Resource footprint along strike and at depth.

Phase 1 drilling, which included 28 Reverse Circulation (RC) and 3 Diamond Drilling (DD) holes, successfully extended mineralisation down dip and confirmed the continuity of a previously untested northeast-trending high-grade cross-cutting structure. This structural feature was intersected both along strike and at depth, highlighting its potential significance for future resource growth. Step-out drilling below the 2023 US$1,800/oz pit shell delineated robust gold intersections in fresh rock and identified additional deeper mineralised zones, reinforcing the deposit’s depth potential.

Meanwhile, the Phase 2 program, targeting shallower holes averaging around 120 metres, completed 75 holes for 6,720 metres. This effort aims to expand the Inferred Resource envelope from approximately 1.3 km by 1.0 km to over 3.5 km by 1.0 km along the north-south strike of Massan, substantially increasing the scale of the mineralised system. The combined drilling results bolster geological confidence and underpin the company’s resource growth strategy.

Regional Geochemistry Reinforces Exploration Upside

Beyond Massan, regional auger geochemistry programs have delineated significant gold anomalies across the Bamfele and Damissa Koura licence areas. At Bamfele, the completed campaign confirmed an extensive ~18 km long north-south trending anomaly exceeding 50 ppb gold, interpreted as the T1 mineralised corridor. A well-defined northeast-trending cross-cutting anomaly consistent with the high-grade T2 structural event recognised in the Siguiri Basin was also identified, offering multiple targets for follow-up drilling.

In Damissa Koura, an auger program initiated in late January 2026 remains ongoing but has already outlined a coherent ~1 km gold anomaly exceeding 100 ppb. This target coincides with historical drilling by Newmont Limited, which previously tested around 500 metres of strike and reported significant intercepts, indicating strong potential for resource delineation in this area.

Corporate Developments and Financial Position

Asara continues to advance the conditional acquisition of Arafura Ouest PTE Ltd, owner of the Damissa Koura and Kankan West Projects, through its subsidiary Ara Exploration SARLU. The process remains subject to finalisation, adding a layer of uncertainty to the company’s project portfolio expansion plans.

Financially, Asara reported exploration expenditure of A$3.18 million for the quarter, reflecting its aggressive drilling and regional exploration programs. The company ended the quarter with a healthy cash balance of A$18.06 million, providing a runway of over five quarters at current expenditure levels. Related party payments totalled A$37,000 for director salaries and fees.

Meanwhile, Asara is actively pursuing divestment opportunities for its non-core Chilean assets, including the Paguanta silver, zinc, lead, and copper project, which remains on care and maintenance. The company’s Loreto Copper Project in Chile is subject to a US$17 million Option and Joint Venture Agreement with Teck Resources Chile, which continues to engage with local stakeholders for project access.

Community Engagement and Environmental Stewardship

Recognising the importance of social licence, Asara has maintained proactive community engagement around the Kada Project. This includes consultations on employing local field assistants and technicians to support drilling activities and the commencement of a land compensation campaign in March 2026. Such efforts aim to secure land access sustainably and foster long-term stakeholder relationships in the region.

Asara’s current Mineral Resource Estimate for Kada stands at 30.3 million tonnes grading 0.95 g/t gold for 923,000 ounces, predominantly shallow oxide and transitional mineralisation. The ongoing drilling and geochemical programs are designed to grow this resource base further, with a Definitive Feasibility Study preparation underway as part of the company’s strategy to increase its interest in the project to 75%.

The company’s drilling success and regional exploration results build on previous strong assays and resource growth potential, as detailed in recent updates including the strong drilling results from the Massan deposit and extensive gold targets at Kada Project. These developments underline the significance of the Siguiri Basin as a prolific gold province and Asara’s growing footprint within it.