Askari Metals completes due diligence ahead of Ethiopian gold portfolio acquisition

Askari Metals (ASX: AS2) has confirmed the presence of potentially gold-bearing quartz veins with appreciable widths during its due diligence of a range of mining assets it is looking to acquire in Ethiopia.

The company announced a binding share purchase agreement in late April to acquire 100% of Rift Valley Metals, the owner of a prospective gold project portfolio within the Adola Greenstone Belt in the southern part of the country.

While the acquisition was designed to give Askari a significant first-mover advantage into a prolific, underexplored gold belt, the sale hinged on a positive due diligence assessment of the asset.

Thorough due diligence

Askari has now successfully completed its legal and technical due diligence in relation to the Adola gold projects.

The portfolio of projects covers 460 square kilometres within the underexplored southern segment of the Arabian-Nubian Shield and includes the Sakaro, Sakaro West, Lega Dembi South, Megado and Wayu Boda projects.

During the site visit to the Wayu Boda project, Askari visually confirmed quartz veins hosted within porphyritic granite and granodiorite as the primary target for gold.

It also observed copper staining on several veins, suggesting the potential for polymetallic mineralisation.

Large-scale artisanal mines

“Our on-site due diligence identified several significant large-scale artisanal mine workings along this highly prospective greenstone gold belt, underpinning our belief that with modern exploration, the full potential and value of these areas can be unlocked,” executive director Gino D’Anna said.

“We’ve spent considerable time building a strong African-focused exploration team, which gives us the ability to seize opportunities without delay and without the need to restart.”

Alecto Minerals completed historical exploration near Wayu Boda that included rock chip grades up to 47 grams per tonne gold, as well as trench results of 14m @ 0.4g/t gold including 3.6m @ 1.5g/t.

“For Askari, this acquisition doesn’t just represent an opportunity to expand its African exploration focus — it represents an opportunity for the company to make a significant discovery and implement the necessary infrastructure to assemble a tier-1 gold portfolio in Ethiopia,” Mr D’Anna added.