Asara Resources (ASX:AS1) is actively discussing potentially divesting its 2-million-ounce Kouri Gold Project in Burkina Faso, West Africa, amid a rising gold price environment.
As Mining.com.au reported yesterday (15 April 2024), the gold price broke a new record of $3,653.25 per ounce, which Asara says has resulted in various parties expressing considerable interest in Kouri.
Meanwhile, Asara has also initiated several discussions regarding the potential divestment of its Paguanta Silver-Zinc-Lead-Copper Project in Chile.
Paguanta is a non-core asset and Asara is working to monetise its interest, while also focusing on its flagship Kada Gold Project in Guinea.
Managing Director Tim Strong says over the past few months, the company has been outlining a strategic plan that has the potential to offer a sustainable long-term growth plan.
“This includes a reduction in overhead costs, a review of exploration data at Kada and significant work undertaken to divest the company’s non-core assets in Chile and Burkina-Faso,” Strong says.
“The divestment of these assets will allow the company to focus on its projects in Guinea and continue to advance Kada towards eventual development.”
At the Kada project, Asara has entered into an agreement with Kappes, Cassidy, and Associates (KCA) of Reno, Nevada, to complete further metallurgical testwork.
Initial testwork at Kada will include head characterisation, bottle roll tests, head screens, agglomeration tests, and column leach tests.
“Initial metallurgical testing will provide us with the knowledge required to move forward with the project as a low-cost heap leach operation which has the potential to quickly be put into production,” Strong says.
Further, sample selection within the main 923,000 ounce Massan mineral resource area has been completed and samples are expected to be dispatched to the US before the end of April. Testwork is expected to take two months to complete.
Asara Resources is a mineral explorer focused on its portfolio of projects in Guinea, West Africa, and South America. The Kada Gold Project in eastern Guinea has an indicated and inferred Mineral Resource Estimate of 30.3 million tonnes at 1 gram per tonne gold for 923,000 ounces.
Write to Aaliyah Rogan at Mining.com.au
Images: Asara Resources
