Askari Metals Ltd (ASX:AS2) has successfully completed technical due diligence at the advanced brownfields Nejo Gold and Copper Project in Ethiopia, a key step in the company’s strategic acquisition of the project.
The due diligence focused on the project’s gold and copper prospects, including drill-ready targets along the Guji-Gudeya Gold Trend, which have already demonstrated significant gold mineralisation. This technical evaluation provides the foundation for advancing exploration and development at the project and sets the stage for the final settlement of the deal, which remains subject to shareholder approval.
Project overview and strategic importance
Located in central-western Ethiopia on the prolific Arabian-Nubian Shield, the Nejo project spans 1,174 square kilometres of a significant greenstone belt hosting notable gold deposits, including the 1.7-million-ounce Tulu Kapi and the 3.4-million-ounce Kurmuk mine. Announced on July 8, Askari’s acquisition of the Nejo Gold Project would give the company exposure to this district-scale landholding in a highly prospective and underexplored region, rich in both gold and copper potential.
Map depicting the locality of the Askari Metals “Nejo Gold Project” in relation to the major gold deposits of Ethiopia.
The Nejo project is seen as a promising high-grade gold exploration asset with multiple priority targets, including Guji, Komto 1, and Komto 2, along the Guji-Gudeya Gold Trend.
Historical exploration at the site has already identified gold mineralisation, with prior trenching and drilling confirming high-grade intersections. These targets are now drill-ready, and Askari plans to advance them with modern exploration techniques to fully realise their potential.
Positive due diligence results
Askari’s on-site due diligence confirmed the presence of gold-bearing quartz veins across multiple target areas. The company focused its assessment on high-priority drill-ready sites, including Guji and Komto 1 and 2, which have shown significant potential for further resource growth.
The verification of historical drilling and trenching supports Askari’s belief that systematic exploration, including drilling and trenching, will unlock additional value at these high-potential targets.
“We are exploring in the land of giants sharing the same geology as those nearby multimillion-ounce commercial-scale gold deposits, and that is what really excites us,” said Gino D’Anna, executive director of Askari Metals.
“For Askari, the acquisition of the Nejo project presents more than an opportunity to expand our African exploration focus, but establishes a foundation for the company to make a significant discover and built a Tier-1 gold portfolio in Ethiopia.”
Regional exploration and maiden drilling program
As part of its broader exploration strategy, Askari has finalised a comprehensive regional exploration program. This includes soil and rock sampling, geological mapping, and the design of an airborne geophysical survey to support the identification of mineralised shear zones across the region. The regional exploration will focus on better defining mineralised trends and targeting high-confidence drill locations.
The Guliso Trend and the Guji-Gudeya Trend are expected to feature prominently in the upcoming exploration campaigns. These areas have previously yielded high-grade gold intersections, but no systematic follow-up drilling has been conducted, presenting Askari with a unique opportunity to make new discoveries. The company plans to begin drilling at the Guji and Komto targets as soon as field conditions allow.
In addition to gold, Askari is also focused on high-grade copper mineralisation identified at the Katta target in the project’s northwest. A separate exploration program is being designed to confirm the nature of this copper deposit, which is expected to provide further value to the project.
Future exploration and stakeholder engagement
Askari noted that it is committed to a transparent and efficient exploration approach, ensuring that all stakeholders are kept well-informed, while actively engaging with local communities and government officials to secure long-term support for the project. With a clear mandate to explore and develop the Nejo Gold and Copper Project, Askari is focused on rapidly progressing exploration to potentially define a JORC-compliant resource.
“We’ve spent considerable time building a strong African-focused exploration team, which gives us the ability to seize opportunities without delay,” D’Anna said. “We are leading the charge of exploration in this region, establishing Askari as a name synonymous with gold and copper exploration and development in Ethiopia.”