Is Arika Resources (ASX:ARI) Onto Something at Kookynie After 19 Metres at 7.99 g/t Gold and a $6.55 Million Placement?

Aditi Sarkar

28 October 2026 04:12 PM AEDT

Is Arika Resources (ASX:ARI) Onto Something at Kookynie After 19 Metres at 7.99 g/t Gold and a $6.55 Million Placement?

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Highlights

Champion hole 26AKRC015 returned 19 metres at 7.99 grams per tonne gold, including 6 metres at 15.87 grams per tonne.
Arika completed 74 holes totalling about 9,000 metres at Kookynie, with about 8,500 metres of samples still awaiting assay results.
The completed placement raised $6.55 million before costs, including $2 million from Lion Selection Group and approved director participation.
Cash rose from $572,000 to $4.203 million, which the company estimates covers about 2.2 quarters at current spending.

In Western Australia's Goldfields, Arika Resources Limited (ASX:ARI) has started to turn drill rigs into results at its 100 per cent owned Kookynie Gold Project. A new lode at Champion lifts the story, and a freshly closed raise gives the company money to keep drilling. Much of the data is still to come, though, with thousands of metres of samples waiting at the laboratory.

Drilling at Kookynie

Arika said in its September 2026 quarterly report, released on 28 October 2026, that reverse circulation drilling at the Champion prospect returned 19 metres at 7.99 grams per tonne gold from 111 metres in hole 26AKRC015. That included 6 metres at 15.87 grams per tonne and a further 6 metres at 8.89 grams per tonne.

Drilling began in July 2026, starting at Cosmopolitan, and by the end of the quarter 74 holes totalling about 9,000 metres had been completed. About 8,500 metres of samples were still waiting for assay results when the report was prepared, so the results released so far cover only part of the program. The intercepts are downhole lengths, and the report does not state true widths.

Other results

At Champion, hole 26AKRC014 returned 2 metres at 2.31 grams per tonne from 63 metres. The company said the new lode sits about 10 to 20 metres above the historical Champion Main Reef. At Cosmopolitan, hole 26AKRC007 returned 5 metres at 12.34 grams per tonne from 162 metres, while hole 26AKRC004 returned 9 metres at 1.59 grams per tonne from 188 metres, including 3 metres at 4.48 grams per tonne, and 9 metres at 0.61 grams per tonne from 200 metres in the Main Reef. Both Cosmopolitan lodes are hangingwall structures.

Elsewhere in the district, results included 1 metre at 11.77 grams per tonne at Irishman, 4 metres at 6.34 grams per tonne at Welshman and 4 metres at 8.24 grams per tonne at Altona South. A soil sampling program collected 356 samples, with a top result of 109 grams per tonne gold, 82 samples above 1.0 gram per tonne and 43 above 5.0 grams per tonne. Extensional drilling at Altona is under way, and testing at Champion and Leipold is planned. These are exploration results and not a mineral resource.

Yundamindra

At the Yundamindra Gold Project, the drill rig is due to move in November 2026 for pre-collars, followed by diamond drilling at Pennyweight Point. Two diamond holes, each about 600 metres deep, will test a tonalite porphyry roughly 400 metres below surface.

Arika has been awarded funding under Round 34 of the Exploration Incentive Scheme, covering 1 December 2026 to 30 November 2027. It provides up to half of drilling costs, capped at $206,213, and mobilisation costs capped at $5,000, a total of up to $211,213. Soil geochemistry surveys have been completed at Emerald City, which covers about half the project area, and a maiden drilling program is planned later this year.

Funding and cash

The first tranche of a placement raised $5.85 million before costs through the issue of 307,894,737 shares at $0.019. A further $0.70 million of participation by directors was subject to shareholder approval, which was granted on 8 October 2026, taking the placement to $6.55 million before costs. Lion Selection Group invested $2 million as part of the raising.

Operating cash outflow for the quarter was $315,000 and investing outflow was $1.593 million, including $1.475 million on exploration and evaluation. Financing inflow was $5.539 million, made up of $5.85 million of equity proceeds less $311,000 of costs. Cash rose from $572,000 to $4.203 million. On the company's own estimate, current cash covers about 2.2 quarters at the present rate of spending, and it has no undrawn facilities.

What comes next

Confirmed near-term milestones are the remaining Kookynie assays, extensional drilling at Altona, planned testing at Champion and Leipold, and the move of the rig to Yundamindra in November 2026.

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