By: Ecofin agency

Canadian junior miner AJN Resources announced on September 22, the start of preliminary works on the Okote gold project in Ethiopia. This follows a development agreement signed with current owner Godu General Trading several months ago. These works aim to lay the groundwork for a broader exploration program designed to advance the project toward the potential discovery of a gold deposit.

Last May, AJN announced a Memorandum of Understanding to acquire up to a 70% interest in Okote through a joint venture with Godu. For this, it plans to invest over $10 million to advance the project through a maiden mineral resource estimate and a feasibility study. The recently commenced works represent the first phase of this process.

The company details it has collected 600 trench samples from the site, currently undergoing analysis. Results from this study will inform the planning of a 1,500-meter diamond drilling program. AJN did not specify the investment committed at this stage, but the company recently raised $470,000 in a private placement closed last week.

By investing in Okote, AJN marks its entry into the African gold sector, in a context where gold prices have already risen over 40% this year. The company's operations previously focused on the Manono North-East and Kabunda South lithium and tantalum permits in the Democratic Republic of Congo. Exploration work remains in its early stages, leaving the chances of discovering a new gold deposit at Okote currently uncertain.

Furthermore, AJN is not the sole junior miner showing interest in an Ethiopian gold project. As recently as July, Australia's Askari Metals announced a binding agreement to acquire the Nejo project there. Simultaneously, the country also features advanced-stage projects, notably Allied Gold's future Kurmuk mine. The same applies to Tulu Kapi, which KEFI Gold and Copper plans to commission by 2027.