Is copper the real prize at Askari Metals’ Nejo Gold Project as energy transition demand heats up?

Askari Metals Limited (ASX: AS2) has reignited investor interest after reporting high-grade copper results at the Katta Target within its Nejo Gold Project in Ethiopia. The Australian gold and lithium explorer surged 50% on July 18, 2025, closing at AUD 0.012, as investors reassessed its African expansion strategy. While the Nejo Gold Project was initially promoted as a gold-rich district, the recent emphasis on copper grades has shifted attention to its potential as a critical minerals play amid rising global demand for energy transition metals.

Why are Katta Target’s 3.2% copper grades being framed as a strategic opportunity for energy transition markets?

The Katta Target, located on the northernmost licence of the Nejo Gold Project, delivered standout historical copper intersections, according to the company’s July 18 ASX announcement. Key highlights include 14.33 metres at 3.2% copper from 25.3 metres and 35.51 metres at 0.82% copper from 152.55 metres in diamond drill holes completed by the United Nations Development Programme between 1967 and 1973. The mineralised gossan, mapped over a 600-metre strike length and up to 30 metres wide, remains open along strike and depth, suggesting further upside.

While Askari Metals’ immediate exploration strategy focuses on confirmatory drilling to validate historical gold and copper results, the copper grades have drawn specific interest due to their alignment with a growing global supply deficit. Market observers believe that such grades, if replicated through modern exploration, could place Askari among a handful of junior explorers supplying future copper demand for renewable energy infrastructure, electric vehicles, and grid expansion.

The copper narrative also distinguishes Askari from its ASX-listed peers in Africa, such as Marvel Gold and Adavale Resources, which are primarily targeting gold and nickel, respectively. Copper-focused juniors operating in similar geological settings, particularly in the Arabian-Nubian Shield, have been attracting re-ratings based on resource definition milestones rather than near-term production, which market watchers believe could play in Askari’s favour if it delivers a maiden JORC resource within 12–18 months.

How does the Nejo Gold Project compare with other ASX-listed juniors targeting copper in Africa?

The Nejo Gold Project sits within the highly prospective Tulu Dimtu Shear Belt, part of the Arabian-Nubian Shield, a region hosting large-scale copper-gold systems such as Allied Gold’s 3.4-million-ounce Kurmuk Mine and Barrick’s Jabal Sayid copper project across the border in Saudi Arabia. Compared with other ASX copper juniors with African exposure, Askari Metals’ market capitalization of just AUD 4.85 million remains deeply discounted. Marvel Gold, for example, commands a significantly higher valuation due to its advanced-stage Tabakorole Gold Project, despite lacking confirmed high-grade copper intersections.

Askari’s strategy of fast-tracking Nejo through systematic exploration and confirmatory drilling could position it competitively among peers, provided it secures adequate funding. Analysts tracking the sector note that copper’s critical mineral status has given even early-stage explorers an edge in attracting speculative capital flows, particularly when historical grades indicate strong mineralisation continuity. However, the reliance on decades-old UNDP data and the absence of systematic follow-up drilling remain key concerns for institutional investors, who prefer projects with recent geophysical validation.

What could a copper-focused narrative mean for Askari Metals’ future in Ethiopia and investor perception?

If Askari Metals successfully validates the historical copper grades and outlines a maiden resource, it could reposition itself from being primarily a gold explorer to an early-stage copper-gold developer aligned with critical minerals demand. This shift would allow the company to tap into a broader investor base interested in energy transition commodities, which typically command higher market premiums.

Future exploration milestones, including high-resolution magnetic surveys and close-spaced soil sampling, are expected to refine drilling targets at Katta 1, Katta 2, and Katta 2 South. Askari’s relatively low acquisition cost for Nejo—AUD 200,000 in cash and shares, plus a capped 1% gross revenue royalty—adds to its potential upside if copper emerges as the primary economic driver. Market observers believe that demonstrating copper resource scalability could attract strategic interest from mid-tier miners seeking early-stage footholds in the Arabian-Nubian Shield.

However, until modern drilling confirms these grades, Nejo remains a high-risk speculative play. For now, Askari’s ability to deliver exploration results that meet JORC 2012 compliance standards will determine whether its copper narrative translates into sustained investor confidence or remains a short-lived rally.