HAR: 800m of continuous gold mineralisation - deeper drilling to start this quarter

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 8,816,637 HAR Shares at the time of publishing this article. The Company has been engaged by HAR to share our commentary on the progress of our Investment in HAR over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs. Any forward-looking statements are uncertain and not a guaranteed outcome.

Our gold Investment Haranga Resources (ASX:HAR) was one of the companies we had on our “watch closely” list going into the Christmas, New Year period.

HAR had drill results incoming from two projects - one in Senegal and one in the USA - just as the gold price has hit new all time highs over the break...

(Yes, gold hit new highs again in the last 10 days as the world is already feeling more chaotic in 2026 with the USA snatching up Venezuela’s leader, threats of Cuba next AND Iran now looking about to fall... all in just the first two weeks of the year)

Results from HAR’s USA gold project could drop any day now (more on this later).

Today’s results were from Senegal where HAR has now extended the gold structures on its ground across ~800m.

Adding to the first batch of gold assays from this project that really surprised the market (including us).

HAR drilled hole #8 back in October 2025 and hit 20m at 6.54g/t gold...

That hit started the rally in HAR’s share price from 8.6c to where it is today at 19.5c per share.

That first batch of results were strong enough for HAR to go straight into a second shallow round of drilling.

Now after today’s results we can see a clear 800m zone HAR can target with deeper drilling (which it’s planning to do later THIS quarter)

(source)

And we note, that’s a tiny ~800m section of the broader project area which has gold in soils over ~5km.

(source)

Most importantly, though, HAR is seeing enough to commit to a third round of drilling, which will be the first time HAR drills the project with a heavier RC rig - capable of drilling to bigger depths.

(All of the drilling so far has been holes down to ~20-85m depths.)

We know there is ~800m of strike to test and a fair few holes that ended in mineralisation...

This quarter, we get to see HAR drill at depth and see what’s sitting below those structures.

(and finally chase those holes that end in mineralisation at depth)

Here is a cross-section of one hole that ended in mineralisation “within bedrock”:

(source)

HAR’s announcement today talks about quartz veins measuring 15-20m and that the deeper drilling will be when we get a full understanding of the grades in the bedrock...

So the main event - the deeper RC drilling happens this quarter - will be when we find out if HAR accidentally made a big new gold discovery, OR if the results from back in October were isolated pockets of high grade gold.

We think HAR is now in a similar position to where $2.3BN Predictive Discovery was when it made its discovery back in February 2020.

The interesting part is the market didn't really start re-rating Predictive until the deeper drilling confirmed what the shallow auger results found initially...

Here is what Predictive had in February of 2020, and what HAR has after today’s results, side by side:

(source) (source)

And here are those deeper holes Predictive had to drill out before the market really started re-rating the stock:

(Source)

Predictive’s asset ended up a 4.9M ounce discovery and took the company’s share price from 0.6c per share to 85c per share.

If that deeper drilling delivers for HAR we think that could be the catalyst that triggers a re-rate higher in HAR’s share price.

Of course, there is just as much chance HAR finds nothing economic - part and parcel of Investing in explorers...

Keep reading to see why we think there are parallels between where HAR is now and what Predictive did in Guinea.

HAR following the $2.3BN Predictive Discovery playbook in Africa

The ultimate win for HAR here will be a “Predictive Discovery style” major gold discovery - which had a similar story arc pre-discovery.

Predictive drilled a few aircore holes with low expectations, hit high grade gold, followed it up with RC drilling and ~5 years later it’s capped at ~$2.3BN.

Predictive hit gold in shallow aircore holes, and the market didn’t really react to the news.

Then, when the deeper holes came back with gold and a discovery was declared, Predictive's share price started running.

Predictive is the most obvious comparable success story to what a big, outsized win for HAR could look like here. No guarantees of course.

(Source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

With HAR’s next round of drilling being the one that will make or break this project we went back and looked at how Predictive’s discovery evolved in the very early days.

The Predictive announcement from 26 February 2020 was when we got a first look at the extent of gold structures (from shallow auger drilling) - similar to what HAR has defined so far.

Here is what Predictive had in February of 2020, and what HAR has now side by side:

(source) (source)

Then a few months later, Predictive followed up with deeper holes along that area that the shallow drilling had defined (they literally drilled below those shallow gold targets):

(Source)

The deeper drilling opened the door to a big capital raise for Predictive, who then did some more shallow auger drilling - defined the big Bankan structure over ~1,300m by July 2020:

(source)

Then came the deeper drilling into that expanded target area - which is when the market started to really take the discovery seriously.

(source)

We think HAR is where Predictive was in early February 2020...

HAR’s got its 800m gold in termite mound soil anomalies - confirmed by shallow aircore drilling.

The deeper drilling (IF it comes in - no guarantees of course) just like Predictives did between February & April 2020 could be what sets up HAR to go off and test the rest of the project...

As mentioned earlier what HAR’s found to date is only a small fraction of the ~5km area with gold in soils:

(Source)

These early results could be the makings of a big discovery - or it could go nowhere.

What we do know is that often big discoveries are made when no one expects anything to happen (that’s exploration for you 🤷‍♂️).

IF HAR can find anything remotely valuable, then it is also in a part of the world where it could attract attention from much larger-cap peers too.

HAR’s project sits in an area with some big operating mines including projects owned by $19BN Endeavour Mining and $2.8BN Resolute Mining.

(The region has a few other gold discoveries too, so it's not in the middle of nowhere).

So a big discovery from HAR here could very easily bring with it corporate attention (if the early results haven’t already).

(Source)

In the short term, we think progress on the company’s gold assets will drive a re-rate in its market cap, as per our Big Bet, as follows:

Our HAR Big Bet:

“HAR re-rates to a market cap greater than $200M by making new gold discoveries in California and progressing towards production or is acquired at a multiple of our initial entry price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our HAR Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

HAR is also drilling its US gold project

Below is an image of the drill rig already in action in the US.

Remember, HAR is drilling deeper from inside the decline of a previously producing gold mine, which is why the drill rig is underground, to get to the deeper parts of the “Mother Lode”:

(Source)

HAR’s project already has a 286,000 oz foreign resource (source) and data from a 2008 report shows it could actually host up to ~682,000 ounces. (source)

Based on this round of drilling, HAR is aiming to convert those into JORC compliant resource estimates.

HAR’s project already has ~US$90M of infrastructure on it, including a fully permitted processing plant and an underground decline (the deep tunnel used by miners to go in and extract the gold ore).

So any high grade intercepts close to the underground decline could also start to build up a potential mine restart story here (which is good given where gold prices are trading).

The mine’s processing plant was last run in 2015. Earlier this year we went to site where we were surprised (to the upside) by the condition of everything on site.

Whilst we aren’t mining engineers, we don’t think it will take much to get this project back into production if HAR finds an economic resource.

(see our HAR site visit note here)

HAR’s plan is to drill ~21 holes in total, with one of the holes to be drilled down to 350m depths.

(HAR’s ground has rarely been drilled below 150m depths).

(Source)

So over the coming weeks, we will get a few confirmatory holes into parts of the project where we expect to see gold mineralisation...

AND we will also get that deep “Hail Mary” hole going for extensions at depth - the first hole down below 150m depth:

(Source)

HAR will be following up previous hits that came back at 1.2m with average gold grades of 108g/t gold and 3.7m at 108.7g/t gold...

(source)

(On first glance, those old intercepts look thin, which comes down to the type of gold HAR is chasing - thin structures that run over a few hundred metres at very high grades).

Given HAR will be doing diamond drilling, between now and assay results, we could also see visuals (assuming HAR is able to intercept them).

We think anything remotely close to those very high historic grades could bring a lot more attention to HAR...

After drilling HAR is targeting a maiden JORC resource estimate for late January 2026 (source).

What’s next for HAR?

Senegal - Deeper drill program 🔄

HAR expects to kick off a 3rd, deeper drill program with an RC rig THIS QUARTER.

We want to see HAR drill out the two target areas defined with the shallow aircore holes & the termite mound sampling (TMS):

USA - Ongoing drilling & results for resource conversion to JORC status 🔄

HAR is currently drilling in the US, looking to convert its ~286k ounce non-JORC gold resource into JORC compliance.

Drilling began on December 1st and HAR’s plan is to drill ~2,600m across 25 holes from crosscut 3 (XC3) to crosscut 8 (CX8), with continued dewatering allowing further access into the decline. (source)

(Source)

(Source)

What are the risks?

In the short term, the key risk for HAR will be “exploration risk”.

HAR is currently drilling in the USA and could have assay results come out from the project over the coming weeks/months.

If the results are underwhelming and/or fails to confirm the historical foreign resource in the USA, the market may re-rate HAR’s share price lower.

Exploration risk

There is no guarantee that HAR’s upcoming drill programs are successful and HAR may fail to find economic gold deposits.

Source: “What could go wrong” - HAR Investment Memo 25 June 2025.

Other risks?

Like any stock market investment, investing in HAR carries a multitude of risks which may affect the value of the company, some of which may not be foreseeable (this is the nature of risks).

Here we aim to identify a few more risks.

HAR’s US project is still at the exploration and early-development stage. It is possible that drilling fails to convert the existing non-JORC resource into a JORC-compliant resource of economic significance.

The company is also exposed to fluctuations in the gold price. A sustained downturn could impact the perceived value of both its US and Senegal assets, and limit HAR’s ability to secure funding on favourable terms.

As a small cap explorer, HAR remains highly reliant on capital markets to fund exploration and development. Any capital raising may dilute existing shareholders, particularly if market conditions weaken.

There are also permitting and development risks. While HAR’s US project has significant sunk capital and existing permits in place, additional mining-related permits are still required, and any delays could affect timelines.

In Senegal, political, regulatory and operating risks are higher compared to more established jurisdictions, and may impact exploration or potential future development.

Finally, as with all speculative explorers, the current share price may already factor in future upside, particularly in a rising gold market, which increases the risk of sharp volatility around drilling results.

Investors should carefully consider these risks and seek professional advice tailored to their personal circumstances before investing.

Our HAR Investment Memo

Our Investment Memo provides a short, high-level summary of our reasons for Investing.

We use this memo to track the progress of all our Investments over time.

Click here to read our HAR Investment Memo where you will find:

• What does HAR do?
• The macro theme for HAR
• Our HAR Big Bet
• What we want to see HAR achieve
• Why we are Invested in HAR
• The key risks to our Investment Thesis
• Our Investment Plan