Nov 14, 2024

Arika Resources Reports 14m @ 15.48 g/t Au at Yundamindra Project, Western Australia

Introduction:

Arika Resources Limited (ASX: ARI) (Market Cap: $18M | Last Close: $0.023 | Cash: ~$3.5M ) has reported significant gold intercepts from its Yundamindra Gold Project in Western Australia, highlighted by 14m at 15.48 g/t Au from 46m at the Pennyweight Point prospect. The results come from a technical review that revealed substantial unexplored depth and strike potential across the project area.

Drill Results:

14m @ 15.48 g/t Au from 46m (Pennyweight Point) [YMRC077]
33m @ 3.35 g/t Au from 22m (Pennyweight Point) [YMRC071]
33m @ 2.63 g/t Au from 85m (Pennyweight Point) [YMRC063]
30m @ 3.86 g/t Au from 89m (Pennyweight Point) [YMRC069]
30m @ 2.36 g/t Au from 64m (Pennyweight Point) [YMRC060]
30m @ 2.26 g/t Au from 26m (Landed at Last) [YMRC050]
40m @ 1.22 g/t Au from 30m (Landed at Last) [YMRC048]‍
26m @ 1.46 g/t Au from 22m (Landed at Last) [YMRC046]

Project Overview:

The Yundamindra Gold Project is located 65km southwest of Laverton in the eastern goldfields mining district of Western Australia. It is situated within the Laverton Greenstone Belt, one of the most prolific gold-producing regions in Australia. The project is a joint venture between Arika Resources (80%) and Nex Metals (20%), with Arika acting as project manager.

The Laverton Greenstone Belt has produced over 28 million ounces of gold, including world-class deposits like Sunrise Dam (8 Moz) and Wallaby (7 Moz) located 20-30km east of Yundamindra. The project area covers the southwestern and southeastern flanks and southern nose of a regional-scale antiformal fold, a structural setting commonly associated with gold deposits in the region.

Program Details:

Arika recently completed 77 reverse circulation (RC) drillholes for approximately 6,000 meters. The program aimed to validate historical results and test for bedrock-hosted gold mineralization beneath shallow historical occurrences. A technical review revealed that ~97% of all historical drilling was limited to weathered zones and depths less than 80 meters. Only 34 holes across the entire project area have been drilled beyond 100m depth, with just 4 holes deeper than 200m. This highlights significant untested potential at depth and along strike.

Understanding These Results:

The reported intersections represent significant gold mineralization in both oxide and fresh rock. The high-grade results from Pennyweight Point, including 14m @ 15.48 g/t Au, indicate the presence of potentially economic gold grades. The consistent thickness of mineralized intervals (up to 40m) suggests the potential for bulk tonnage targets.

The limited historical deep drilling means the bedrock source of the mineralization remains largely unexplored. The entire Western Corridor (Landed at Last) is unexplored beneath 80m depth over a strike length exceeding 10km, presenting a substantial exploration opportunity.

Management Commentary:

Justin Barton, Managing Director of Arika Resources, stated:

“Having completed a highly successful maiden drilling program on three prospects at Yundamindra, that delivered outstanding results, we are excited to provide an update of our review and analysis of all historical data and our recent drilling results. Despite the project appearing to have seen extensive drilling, mainly in the 80s and 90s, analysis shows that ~97% of all historical holes were restricted to the weathered zone and drill depths of less than 80m, where drilling was essentially blade refusal (RAB/ aircore) targeting shallow high-grade oxide resources.”

“This presents an exciting opportunity for Arika as the mineralisation essentially remains unexplored at depth and along strike, providing a great opportunity for a significant further gold discovery outside of the shallow oxide as we chase the source of the mineralisation in the underlying bedrock and along strike.”

“As we continue to review all geological and geochemical data, we are also eager to recommence drilling, anticipated to re-start next week, as we begin to test the extensions to the Pennyweight Point and Landed at Last prospects”.

Next Steps & Catalysts:

Phase 2 drilling at Yundamindra is scheduled to start next week, focusing on testing strike and depth extensions at Pennyweight Point & Landed at Last. The company is also compiling and assessing regional and local-scale geophysical data to compare the tectono-stratigraphic setting at Yundamindra with neighboring deposits.

Arika is considering additional geophysical surveys, including ultra-detailed magnetics, ultra-detailed gravity, and Sub-Audio Magnetics (SAM). An assessment of all available geochemical data has commenced to understand multi-element anomalism associated with gold occurrences and identify potential gold trends beyond drill-tested areas.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,573/oz (November 14, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Gold continues to be a sought-after commodity, with the Laverton Greenstone Belt representing one of Australia's premier gold mining districts. The proximity to major gold operations and processing facilities enhances the strategic value of new discoveries in the region.

Conclusion:

The latest results from Yundamindra demonstrate potential to expand the known gold mineralization both laterally and at depth. With the majority of historical drilling limited to shallow depths, Arika has an opportunity to make new discoveries in an underexplored portion of a world-class gold district. The upcoming drilling program and geophysical surveys will be critical in helping unlock the potential of the Yundamindra Gold Project.

Sources:

ARI Drill Result Announcement

Additional Figures:

Australia

ASX

Lithium

Jan 16, 2022