Asra’s Cash Crunch Eased by Asset Sale, But Exploration Funding Remains Tight
Asra Minerals has successfully completed Phase 1 drilling at its Leonora North and South gold projects, confirming significant gold mineralisation and setting the stage for an expanded Phase 2 program in March 2025.
- Phase 1 drilling confirms gold mineralisation at Leonora North and South projects
- High-grade gold intersections including 47.95 g/t Au at Sapphire and 1.69 g/t Au at Mt Stirling
- Phase 2 drilling scheduled for March 2025 to expand exploration
- Appointment of Paul Stephen as new CEO to drive project development
- Secured Western Australian Government co-funding for rare earth element drilling
Phase 1 Drilling Success at Leonora Projects
Asra Minerals Limited (ASX: ASR) has reported the successful completion of its Phase 1 drilling programs at the Leonora North and South gold projects in Western Australia. The company’s recent air-core, reverse circulation, and diamond drilling campaigns have confirmed the presence of gold mineralisation in multiple target areas, notably at the Diorite East Prospect of Mt Stirling and the Sapphire and Orion prospects in Kookynie East.
At Leonora North’s Mt Stirling Diorite East, the program included 2,400 metres of air-core and 1,310 metres of reverse circulation drilling. Significant shallow gold intersections were recorded, such as 4 metres at 1.69 g/t Au from 12 metres depth, reinforcing the prospectivity of the area. Additionally, vacuum drilling identified strong untested gold-in-soil anomalies, with grades up to 1.2 g/t Au, highlighting further exploration potential.
High-Grade Results at Leonora South
The Leonora South project’s Phase 1 diamond drilling at the Sapphire and Orion prospects delivered exceptional gold grades, extending mineralisation approximately 30 metres below previous intercepts. Highlights include 1 metre at 47.95 g/t Au and 1 metre at 23.12 g/t Au at Sapphire, and 0.8 metres at 23.97 g/t Au at Orion. These results validate historical drilling and provide a strong foundation for the upcoming Phase 2 drilling campaign.
Corporate Developments and Funding Support
In December 2024, Asra appointed Paul Stephen as CEO, bringing extensive experience in advancing mining projects from discovery to production. His leadership is expected to accelerate the company’s exploration and development efforts. What's more, Asra secured co-funding from the Western Australian Government’s Exploration Incentive Scheme (EIS) for drilling at the Yttria rare earth elements deposit, covering up to 50% of direct drilling costs. This support underscores the strategic importance of Asra’s diversified mineral portfolio.
Financial Position and Next Steps
Following the sale of the Tarmoola Pastoral Lease, Asra has bolstered its financial position, enabling it to proceed confidently with Phase 2 drilling planned for March 2025. The company’s exploration expenditure for the quarter was $894,000, focused on drilling, assays, and geological studies. Despite a modest cash balance at quarter-end, the recent inflow from asset sales and government grants provides a runway for continued exploration activities.
Looking ahead, Phase 2 drilling will aim to infill and expand on the promising Phase 1 results, particularly targeting structural traps identified over a 4-kilometre strike at Mt Stirling and further testing at Kookynie East. The company’s strategic focus on both gold and rare earth elements positions it well to unlock value from its extensive tenement holdings in the prolific Leonora region.
Bottom Line?
Asra Minerals’ Phase 1 drilling success and strengthened leadership set a promising course for its March 2025 exploration push, with investors watching closely for further high-grade results.
Questions in the middle?
- How will Phase 2 drilling refine the resource potential at Mt Stirling and Kookynie?
- What impact will Paul Stephen’s leadership have on Asra’s project development timeline?
- How significant is the rare earth element potential at Yttria in diversifying Asra’s asset base?
