Askari Metals surges 50% as Nejo Gold Project copper results revive investor interest

Can Askari Metals’ Nejo Gold Project deliver a JORC resource quickly enough to reverse its steep share price decline?

Askari Metals Limited (ASX: AS2) saw its shares surge 50% on July 18, 2025, closing at AUD 0.012 after releasing historical high-grade copper results from the Katta Target within the Nejo Gold Project in Ethiopia. The move came despite a steep 72% year-to-date decline in its stock, leaving the exploration junior with a market capitalization of only AUD 4.85 million. Analysts tracking ASX-listed junior explorers described the spike as a “speculative re-rating,” with retail investors rushing to reassess Askari’s African strategy in light of the new copper data.

The Nejo Gold Project, which spans 1,174 square kilometres on the Arabian-Nubian Shield, has been the centerpiece of Askari Metals’ African expansion strategy since its acquisition earlier this month. The company has highlighted Nejo as a dual gold-and-copper play, with historic data pointing to Tier-1 geological potential. However, market sentiment has been cautious, with institutional investors citing Askari’s limited funding capacity and a history of underexplored targets as key risks.

Why are the Katta Target’s copper grades being seen as a potential turning point for Askari Metals’ exploration strategy?

The catalyst for the stock’s sudden rally was the confirmation of high-grade copper mineralisation at the Katta Target, based on historical drilling conducted by the United Nations Development Programme between 1967 and 1973. According to Askari’s July 18 announcement, one of the standout intersections included 14.33 metres at 3.2% copper from a depth of 25.3 metres (UNDP_03) and 35.51 metres at 0.82% copper from 152.55 metres (UNDP_04), including 14.54 metres at 1.08% copper.

The mineralised gossans in the Katta Target area, mapped over a 600-metre strike length and up to 30 metres wide, remain open at depth and along strike. A soil geochemical anomaly exceeding two kilometres further underscores the potential scale of the copper system. Notably, gold assays were not completed in the historical program, leaving open the possibility of significant polymetallic upside once systematic modern exploration is carried out.

Askari’s Executive Director, Gino D’Anna, said the validation of high-grade copper through historical data “confirmed the rationale behind the Nejo acquisition,” adding that modern drilling could rapidly unlock new resource potential. He emphasized that systematic exploration, absent in the historical campaigns, is the missing piece in converting Nejo’s targets into a maiden JORC-compliant resource.

What makes the Nejo Gold Project’s geological setting attractive for large-scale gold and copper discoveries?

The Nejo Gold Project lies within Ethiopia’s Tulu Dimtu Shear Belt, a well-known greenstone belt within the Arabian-Nubian Shield. The region hosts several significant deposits, including Allied Gold’s 3.4-million-ounce Kurmuk project and Kefi Gold and Copper’s 1.7-million-ounce Tulu Kapi Mine. Askari’s licences almost entirely surround the Tulu Kapi project, with multiple targets identified as potential extensions of the mineralised system.

Historical exploration across Nejo’s 10 priority targets has already produced impressive gold results. At the Dina Target, one diamond drill hole intersected 7.1 metres at 30.3 grams per tonne gold, while the Soyoma Target returned 14.2 metres at 8.18 grams per tonne gold from surface trenching. Other notable results include 44 metres at 1.7 grams per tonne at Guji, 7 metres at 7.27 grams per tonne at Komto, and 16 metres at 3.49 grams per tonne at Yubdo West.

Despite these results, less than 15% of Nejo’s exploration licence area has been systematically explored, which analysts view as both a risk and an opportunity. The historical data provides strong evidence of high-grade mineralisation, but the absence of modern confirmatory drilling leaves investors relying on unverified historical results.

How is Askari Metals planning to fast-track the Nejo Gold Project toward a maiden JORC resource?

Askari Metals has outlined a multi-phase exploration program to validate historical data and fast-track Nejo toward a JORC (2012) resource estimate. The company intends to deploy high-resolution magnetic surveys, close-spaced soil geochemistry, trenching, and diamond drilling targeting both copper and gold zones. At the Katta Targets, follow-up drilling will focus on optimising collar locations, as many of the UNDP holes were historically positioned too far from the mineralised structures.

D’Anna stated that the company aims to “deliver meaningful exploration milestones in the near term,” with early-stage resource definition efforts expected to focus on Katta 1, Katta 2, and Katta 2 South. Other targets such as Tulu Chuchu, Adare North, and Kutala are also slated for initial mapping and sampling.

Institutional investors remain cautiously optimistic, noting that the availability of a detailed historical database and proximity to producing operations could shorten the development timeline. However, they also point out that any significant capital raising or partnership agreements will be critical to sustaining exploration momentum.

What are analysts saying about Askari Metals’ valuation and potential upside following the copper announcement?

Analysts tracking small-cap resource plays argue that the stock’s AUD 0.012 level, despite its 50% spike, still reflects deep scepticism over Askari’s ability to execute. The company’s market capitalization of AUD 4.85 million is significantly lower than peers with similar-stage assets on the Arabian-Nubian Shield, suggesting that investors are yet to fully price in the copper potential.

Institutional sentiment is mixed. On one hand, the high-grade copper and gold intersections reported historically are considered “compelling exploration catalysts,” particularly given global interest in copper as a critical mineral for the energy transition. On the other, Askari’s limited funding capacity and the speculative nature of Ethiopian exploration remain overhangs.

Some investors are viewing Askari as a high-risk, high-reward speculative play. If systematic drilling confirms the historical copper and gold grades and outlines a maiden resource within 12–18 months, the stock could see a re-rating. Conversely, delays in permitting or disappointing follow-up results could trigger a sharp reversal.

Could the Nejo Gold Project position Askari Metals as a significant African gold and copper developer in the next phase of its growth?

The Nejo Gold Project represents Askari Metals’ attempt to pivot into becoming a serious African-focused explorer. The company’s acquisition terms—AUD 200,000 in cash, AUD 200,000 in shares, and 20 million unlisted options—were structured to minimize upfront dilution while securing a 100% beneficial interest in the project. A capped 1% gross revenue royalty on future production further supports the economic rationale.

For Askari to emerge as a notable African gold and copper developer, it will need to translate Nejo’s historical exploration upside into verifiable resources while navigating Ethiopia’s regulatory landscape. Analysts suggest that success at Nejo could unlock further opportunities on the Arabian-Nubian Shield, where multiple large-scale operations have already demonstrated the region’s mineral endowment.

The next six to twelve months will be critical. Investors will be watching closely for the commencement of drilling, resource definition updates, and any strategic funding or partnership announcements. A positive trajectory could transform Askari from a micro-cap explorer into a significant player in one of Africa’s most promising greenstone belts.