Kada Gold Project Drilling Starts Despite Guinea Revoking 120+ Permits
Asara Resources assures investors its Kada Gold Project permits remain intact despite Guinea’s recent revocation of over 120 exploration permits. Drilling has already commenced, signaling continued progress.
- Guinea revokes 120+ exploration permits
- Asara’s Kada Gold Project permits unaffected
- Drilling started at Kada on 27 May 2025
- No formal communication received from Guinea’s Ministry of Mines
- Asara monitoring situation closely for updates
Context of Guinea’s Permit Revocation
On 26 May 2025, Guinea’s Ministry of Mines and Geology announced the revocation of more than 120 exploration permits, a move that sent ripples through the West African mining sector. This sweeping action reflects the government’s tightening grip on mineral exploration activities, aiming to recalibrate the country’s resource governance. However, the announcement left many companies scrambling to confirm their permit status amid limited official communication.
Asara Resources’ Position
Asara Resources Limited, an ASX-listed explorer focused on gold and base metals, promptly addressed concerns regarding its flagship Kada Gold Project in eastern Guinea. The company confirmed it has not received any formal notice from the Ministry of Mines regarding permit revocation. To the best of its knowledge, the exploration permits covering Kada remain valid and unaffected by the government’s recent actions.
Importantly, Asara has already commenced drilling activities at Kada as of 27 May 2025, underscoring its confidence in the project’s regulatory standing and its commitment to advancing exploration. This proactive step signals that Asara is pressing ahead with its strategy to expand the mineral resource base, which currently stands at an indicated and inferred estimate of 923,000 ounces of gold.
Broader Implications and Strategic Focus
Guinea remains one of West Africa’s most under-explored territories, and Asara’s Kada project covers a substantial 150-kilometre area with significant potential for discovering additional oxide gold mineralisation. The company’s focus on growing its resource estimate aligns with the broader industry trend of seeking high-quality, shallow oxide deposits that are typically less costly to develop.
Meanwhile, Asara is also managing its Chilean assets, including the Paguanta Copper and Silver-Lead-Zinc Project and the Loreto Copper Project, the latter under a joint venture option agreement with Teck Resources. The company is actively seeking to divest Paguanta to concentrate resources on the promising Kada project in Guinea.
Looking Ahead
While Asara’s immediate outlook remains positive, the lack of formal communication from Guinea’s Ministry of Mines introduces an element of uncertainty. The company’s commitment to monitoring developments and updating shareholders will be critical in navigating this evolving regulatory landscape. Investors will be watching closely for drilling results and any official updates on permit status that could impact project timelines or valuations.
Bottom Line?
Asara’s steady progress at Kada offers reassurance, but Guinea’s permit shake-up warrants vigilant watchfulness.
Questions in the middle?
- Will Guinea’s Ministry of Mines formally confirm the status of Asara’s Kada permits?
- How might the broader permit revocation impact Guinea’s mining investment climate?
- What early results will the ongoing drilling at Kada reveal about resource expansion potential?
