After Lifting Its Kada Gold Resource to 2.08 Million Ounces, Asara Resources (ASX:AS1) Agrees a Chilean Sale and Adds Guinea Permits

Aditi Sarkar

28 October 2026 04:12 PM AEDT

After Lifting Its Kada Gold Resource to 2.08 Million Ounces, Asara Resources (ASX:AS1) Agrees a Chilean Sale and Adds Guinea Permits

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Highlights

The interim Kada mineral resource reached 92.9 million tonnes at 0.70 grams per tonne gold for 2.08 million ounces.
Indicated resources grew by more than 600 per cent and now make up about 61 per cent of contained gold.
Asara agreed to sell its 74.79 per cent Paguanta interest to Ajax Resources for up to US$1.4 million.
Cash closed the quarter at $53.689 million, and the company calculated a funding runway of 6.41 quarters.

A resource that grew 125 per cent sits beside a cash balance that slipped from $59.753 million to $53.689 million. Asara Resources Limited (ASX:AS1) reported both in its September 2026 quarterly report, lodged on 28 October 2026. The Kada Gold Project in Guinea took centre stage, while permits, a Chilean asset sale and a busy drilling schedule filled out the rest of the quarter.

The updated resource

The interim mineral resource at Kada, in Guinea's Siguiri Basin, now stands at 92.9 million tonnes at 0.70 grams per tonne gold for 2.08 million ounces. The estimate is dated 31 August 2026.

The company said the figure is up 1.16 million ounces, or 125 per cent, from the October 2023 estimate, helped by a lower cut-off grade of 0.32 grams per tonne gold compared with 0.50 grams per tonne previously. Indicated resources are 51.4 million tonnes at 0.77 grams per tonne for 1.27 million ounces, about 61 per cent of the contained gold, and the company said that category grew by more than 600 per cent. Free-dig oxide ore increased from 12.4 million tonnes to 35.8 million tonnes.

By deposit, Massan accounts for 91.2 million tonnes at 0.70 grams per tonne for 2.04 million ounces, split between 1.27 million ounces indicated and 0.77 million ounces inferred. Bereko holds 1.65 million tonnes at 0.81 grams per tonne for 0.04 million ounces, all inferred.

The company is targeting completion of a definitive feasibility study by the end of the second quarter of calendar 2027. Asara owns 75 per cent of Kada after exercising its earn-in in April 2022 and must fund the study to keep that interest.

Drilling and land position

At Massan, 241 holes totalling 33,223 metres were drilled during the quarter, comprising 109 reverse circulation, 128 aircore, two reverse circulation with diamond tails and two diamond holes. A further 145 holes for 19,251 metres were drilled after the data cut-off to support future resource updates.

Asara has also agreed to acquire Arafura Ouest Pte Ltd, which holds the Damissa Koura and Kankan West exploration permits, lifting its regional landholding to about 301 square kilometres. Consideration is SGD100 in cash plus five million Asara shares, issued on 14 September 2026 and subject to 12 months of escrow. The report links the shares to three months of consulting services from the vendors.

South American assets

In Chile, Asara has a binding agreement to sell its 74.79 per cent interest in the Paguanta project to Ajax Resources PLC for up to US$1.4 million. That comprises US$50,000 in cash, US$350,000 in Ajax shares and up to US$1 million deferred, payable in two US$500,000 milestones tied to zinc and copper ore reserves. Completion is subject to conditions precedent, so the sale is not yet complete.

At Loreto, Teck Chile can earn up to 75 per cent under a US$17 million option and joint venture agreement. The company said Teck is engaging landowners over site access.

Cash and funding

Exploration and evaluation spending was $8.48 million for the quarter, and the report said there was no mining production or development. Operating cash flow was a positive $73,000 because interest received of $547,000 exceeded corporate costs of $449,000.

Investing outflow was $9.853 million, including $8.452 million of exploration. Financing inflow of $3.607 million came from $3.843 million of equity proceeds less $236,000 of costs, being the balance of the second placement tranche received on 2 July 2026.

Cash at quarter end was $53.689 million, down from $59.753 million, made up of $19.172 million in bank balances and $34.517 million in call deposits. The company calculated a funding runway of 6.41 quarters based on net outgoings of $8.379 million.

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