Askari Metals Acquires Nejo Gold Project Spanning 1,174km2 in Ethiopia
Askari Metals has acquired the Nejo Gold Project in Ethiopia, aiming to build a tier-1 gold portfolio in the underexplored Arabian-Nubian Shield. The company plans systematic exploration to unlock significant gold resources.
- Acquisition of Nejo Gold Project in central-western Ethiopia
- Targeting over 2 million ounces of gold resource
- Focus on systematic exploration including drilling and soil geochemistry
- Project located in prolific Arabian-Nubian Shield near major gold mines
- Askari Metals expanding African portfolio, considering divestment of Australian assets
Strategic Acquisition in a Promising Region
Askari Metals Limited (ASX, AS2) has announced the acquisition of the Nejo Gold Project, a substantial landholding spanning 1,174 square kilometres in central-western Ethiopia. This move marks a significant step in the company’s strategy to establish a tier-1 gold portfolio within the Arabian-Nubian Shield, a geological region renowned for hosting large-scale gold and copper deposits but still largely underexplored by modern standards.
The Nejo Project benefits from proven high-grade gold mineralisation evidenced by historic drilling and trenching, with low geological risk and considerable exploration upside. Its proximity to the 1.7 million ounce Tulu Kapi Mine and the 3.4 million ounce Kurmuk Mine situates Askari’s new asset within a globally significant gold-copper district, enhancing its potential value.
Focused Exploration and Resource Development
Askari plans to fast-track the development of the Nejo Gold Project through targeted, low-cost exploration campaigns. These include confirmatory drilling, soil geochemical surveys, and trenching aimed at delivering a maiden JORC (2012) Mineral Resource Estimate. The company has identified ten high-priority gold targets within the project area, with drill-ready zones such as Guji, Komto 1, and Komto 2 already earmarked for immediate attention.
Historical data reveals encouraging intercepts, including significant gold grades over substantial widths, though systematic exploration has been limited to date. Askari’s approach leverages this existing data while applying modern exploration techniques to unlock the project’s full potential.
Broader African Portfolio and Strategic Positioning
Beyond Nejo, Askari Metals maintains a diversified African exploration portfolio, including lithium projects in Namibia and uranium assets in Tanzania. The company is also evaluating divestment options for its Australian projects, which encompass gold, copper, and rare earth elements, to sharpen its focus on high-impact African opportunities.
The Ethiopian government’s recent reforms and investment incentives, coupled with the country’s growing infrastructure and strategic location within the Common Market for Eastern and Southern Africa, provide a supportive backdrop for mining ventures. Askari’s experienced board and exploration team, with deep regional knowledge, position the company well to navigate this evolving landscape.
Unlocking a Frontier Belt
The Arabian-Nubian Shield remains one of the last mineral-rich frontier belts globally, with vast areas still underexplored despite hosting world-class deposits. Askari’s acquisition of Nejo taps into this potential, aiming to deliver a scalable resource with robust economics in a high gold price environment. The company’s systematic exploration and development plans could transform Nejo into a cornerstone asset, complementing its broader African ambitions.
Bottom Line?
Askari Metals’ Nejo acquisition sets the stage for a transformative exploration campaign that could redefine its market position in African gold mining.
Questions in the middle?
- How soon will Askari deliver a maiden JORC Mineral Resource Estimate for Nejo?
- What are the geopolitical and regulatory risks associated with mining in Ethiopia?
- How will the company balance exploration spending with potential divestment of Australian assets?
