Latest news with #ArikaResources
News.com.au
3 days ago
- Business
- News.com.au
Barry FitzGerald: Prodigious gold region a yellow brick road for Arika
'Garimpeiro' columnist Barry FitzGerald has covered the resources industry for 35 years. Now he's sharing the benefits of his experience with Stockhead readers. In a $5100/oz-plus Aussie gold market there is nothing quite like a big targeted exploration program in a prodigious gold region to get the interest up. And so it is with Arika Resources (ASX:ARI), which has been attracting followers of late on the strength of its 10,000m drilling program at two projects in the Leonora-Laverton district. It is funded for the hunt after a $5 million capital raise in May and at a share price of 3.9c for a market cap of $33.5 million, Arika has plenty of leverage to exploration success. Investors won't die wondering with this one, as there will be a steady flow of exploration results over the next 6-12 months. Both of the company's projects – Yundamindra and Kookynie – are surrounded by the region's big name producers like Genesis, Northern Star and Gold Fields, among others. As recent activity in the region has demonstrated, there are plenty of options around toll treatment/ore purchase/acquisitions should Arika work up a deposit that is measured in the hundreds of thousands of ounces rather than the millions of ounces category. Arika is after the big discovery for sure. It's just that in this gold price environment there is plenty of value to be had with smaller finds. Think of it as a potential value backstop while Arika continues the hunt for the game changing discovery. Where is the game changer? Both of Arika's projects are peppered with historic workings which are obvious drilling targets. But there are also a bunch of targets hidden from oldtimers by cover. Geophysics and geochemical work leading up to the drilling program has taken what could be called high-priority targets to more than 50. Arika reported first results from drilling at the F1 Fault at the Landed at Last prospect at Yundamindra on Monday. The best intercepts included 4m at 41.56g/t from 52m and 27m at 2.45g/t from 61m, and they've served to rev up interest in the stock. F1is one of several north-east trending structures which cross-cut Landed at Last's mineralisation towards the northern end of what Arika, without blushing, calls the Yellow Brick Road. It is a mineralised structural corridor than extends for more than 16km along the western flank of the Yundamindra syncline. A 10km section of the Yellow Brick Road is dotted with historical workings. Despite its location and history of gold mining, the Yundamindra area has only ever been lightly explored. What modern era drilling was conducted by previous owners was mostly shallow at less than 50m. Before the latest drilling Arika tested for depth extensions, with the deepest hole to date at the prospect returning a super encouraging 14.8m grading 3.1g/t from 87m. More where that came from Arika boss Justin Barton said on Monday that it was important to remember that F1 was just one of the many under-explored prospects along the Yellow Brick Road. Garimpeiro reckons Dorothy most likely agrees. The drill rig motored on from F1 to another highly ranked prospect called Bonaparte (assays pending) and is now testing the Banjo's Camp prospect. As indicated earlier, assay results from the drilling campaign will be rolled out on a regular basis. Over at Kookynie, Arika shares tenement boundaries with Genesis Minerals (ASX:GMD). An aeromagnetic survey has been completed at the Ithaca prospect, which sits immediately along strike from Genesis' Ulysses gold mine. Like the prospective areas at Yundamindra much of the prospective ground at Kookynie is on mining leases, which means if there is a near-term opportunity to monetise a smallish discovery while the search for the big one goes on, Arika will be able to act quickly.
News.com.au
20-05-2025
- Business
- News.com.au
Why A-list gold investors think Arika has major discovery potential
Rising gold prices are driving fresh drilling and project funding for junior explorers That has worked in Arika Resources' favour with drilling about to get underway We chat to Lowell Resources Fund CIO John Forwood about why he likes the stock Market volatility has propelled gold to historic highs in both US and Australian currencies, bringing renewed interest to junior explorers. We're ~22% higher since the beginning of the year, and although the excitement hasn't been reflected in the share prices of all small-cap explorers, it has shone a light on those increasing investment in new projects via exploration and drilling programs. Arika Resources (ASX:ARI) is one example, having recently secured $5 million in funding to scale up drilling efforts from 6000m to 10,000m across its Kookynie and Yundamindra assets in the heart of WA's Goldfields, covering aircore, reverse circulation and diamond drilling. The combined program, set to begin in early June, will largely focus on Yundamindra – a promising area that has flown under the radar of major companies. Around 45,000oz was mined at Yundamindra at grades of over 19g/t up to 1970, but it remains under-explored, with 97% of the drilling in the 1980s and 1990s only targeting shallow oxide resources less than 80m from surface. The upcoming campaign will test around high-grade intercepts at multiple targets including Pennyweight Point in the project's eastern corridor. Shares in the company surged 50% after diamond drill results at Pennyweight Point were reported in April, which included 35.76m at 2.14g/t gold from 104.27m as well as 13.46m at 5.28g/t gold from 111.40m. Yundamindra is within a stone's throw of AngloGold Ashanti's Sunrise Dam and Gold Fields' Wallaby, two huge multimillion-ounce gold mines that have been in production for ~30 years, as well as major players like Genesis Minerals (ASX:GMD) and Northern Star Resources (ASX:NST). The project is also along strike to the south of the $44m Guyer JV between Iceni Gold (ASX:ICL) and Gold Road Resources (ASX:GOR), part of the 15km-long Guyer gold trend that hosts ICL's 14 Mile Well gold asset. At last month's Resources Rising Stars Gather Round conference, Arika outlined its pursuit of a multimillion-ounce discovery, a goal that caught the attention of Lowell Resources Fund (ASX:LRT). Lowell chief investment officer John Forwood, the expert behind our Ten Bagger column, told Stockhead what particularly piqued his interest in Arika Resources was the prospective geology of both projects. 'We're pretty familiar with the areas that the assets are in, we have an investment in Carnavale Resources (ASX:CAV), which is Arika's immediate neighbour at Kookynie, so we know and like the geology,' he said. 'I've also been following Wade Johnson at Iceni Gold, which is immediately north of Arika's Yundamindra asset and really, really like the geology there – in fact, it looks like the Guyer trend, which Iceni has, trends straight down into Yundamindra.' Forwood said another interesting aspect of the project was the geology in the southern part of the asset, which represents a high-priority, complex structural target that has never been effectively sampled by historical surveys. 'We're very interested in new areas, and I the think bigger picture with both Arika's assets being in the heart of the Goldfields (is) if you find something in that region there is going to be a lot of interest,' Forwood added. 'Arika have had some really good hits already from the diamond drilling at Pennyweight Point so I think they are well on their way,' he said. 'Both projects are big enough to be standalone projects and hold the potential to be toll treated.' Solid backing and well-funded Leading the Arika team is managing director Justin Barton, who brings over a decade of experience at the Big Four accounting firms across Australia and Europe, where he advised top-tier mining, energy, and financial institutions globally. 'Arika's current exploration manager, Steve Vallance, is an impressive guy and has the right approach,' Forwood noted. 'We really like to see Roger Steinepreis as the chairman there; he has done well with companies in the past including Apollo Consolidated Limited – which was the subject to a takeover by Ramelius in 2021 – and he's putting his money where his mouth is there with Arika. Forwood also likes the fact Arika's tenure sits on granted mining leases. While it doesn't mean permitting is done and dusted, it significantly shortens any production timelines should a major, or even modest, gold discovery be uncovered. 'The high gold prices, which are currently sitting around Aussie $5000 an ounce or thereabouts, provides explorers with the potential to monetise, smaller and lower grade deposits," Forwood said. 'It really incentivises explorers to go out there and have a look and they don't necessarily have to find a million ounces, they might only find 100,000oz or 10,000oz and if it's of a reasonable grade then it's something that they can make money from. 'Now that Arika are well-funded and raised five million during the last placement that we participated in, I think they've got all the elements there.'
Mercury
02-05-2025
- Business
- Mercury
Break it Down: Arika Resources
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. Stockhead's Break it Down brings you today's leading market news in under 90 seconds. In this episode, host Tylah Tully looks at news from Arika Resources (ASX:ARI), who've raised $5 millions to supercharge drilling across the Yundamindra and Kookynie gold projects. Watch the video to hear what Arika has planned. While Arika Resources is a Stockhead advertiser, it did not sponsor this content. Originally published as Break it Down: Arika's $5M raise to bankroll gold drilling
