Skylark Minerals [ASX: SKM]
Metals & Mining
Advancing a Scalable Gold Platform Through Resource Growth and Portfolio Expansion
We initiate coverage on Skylark Minerals (ASX: SKM) with a target price of A$0.66, implying a ~128% upside from the current share price of A$0.29. Skylark represents a compelling resource growth and exploration opportunity, with significant value expected to be unlocked as the Company advances its Côte d’Ivoire gold portfolio and progresses further drilling across its key project areas. The Company’s investment case is anchored by the Zaranou Gold Project, an advanced exploration asset with a JORC (2012) compliant Inferred Mineral Resource of 364,600oz at 1.8g/t Au, supported by extensive historical drilling, a large prospective strike corridor and a staged earn-in pathway to 100% ownership.
The Company stands apart from typical early-stage explorers through its defined resource base. SKM’s value is supported by an existing defined resource base, a highly experienced management team, the scale of its Côte d’Ivoire gold portfolio, and the potential for a near-term MRE upgrade from ongoing drilling. The portfolio provides meaningful district-scale exposure across structurally prospective assets at Zaranou, Maphai and Vavoua, while planned drilling is expected to test strike extensions and deeper higher-grade mineralisation. This positions Skylark on a clear pathway towards resource growth, ownership consolidation and potential valuation re-rating.
23,000m Drill Program Targets Major Resource Upgrade
Zaranou is currently being advanced through a 23,000m drilling program, representing a key near-term catalyst for Skylark. Phase 1 drilling at M’Basso has now been completed, with 38 RC holes for 6,667m drilled, assayed and reported, extending the mineralised strike to approximately 750m and confirming the system remains open along strike and at depth. Phase 2 step-out drilling is now underway, while drilling at Ehuasso, which hosts the majority of the existing Zaranou resource, is targeted to commence by the end of June 2026. Together, these programs provide a strong platform for a potential Q4 2026 MRE upgrade and continued valuation re-rating. In parallel, Skylark has strengthened its Côte d’Ivoire portfolio through the 100% acquisition of the Vavoua Project, adding another large-scale exploration asset within a prospective structural corridor and broadening the Company’s resource growth pipeline.
Zaranou Positioned Along a Proven Gold Belt
Zaranou’s investment case is further supported by its position within the West African Birimian greenstone belt, one of Africa’s most prolific gold provinces. The project’s shear-hosted mineralisation and structural setting provide useful comparisons with established Côte d’Ivoire gold systems such as Yaouré, Agbaou and Abujar, where systematic drilling has driven substantial resource growth over time. While Zaranou remains at an earlier stage, these regional analogues highlight the potential for meaningful scale to emerge as the broader mineralised corridor is progressively tested.
Compelling Upside Underpinned by Maiden MRE and Significant Assays
We have used a SOTP approach to value SKM; in the base case, we derive a target price of A$0.58 and A$0.74 in the bull case, indicating upside of 100% and 156%, respectively, relative to the current share price. Skylark is supported by several key tailwinds, including a strong balance sheet, experienced management, an active drilling pipeline and a favourable gold market backdrop. With approximately A$7.4m in cash, the Company is well funded to advance drilling and exploration, while management brings strong experience across gold exploration and project development. Importantly, Phase 2 drilling is now underway at Zaranou, providing a key near-term catalyst as the Company continues to test mineralised extensions ahead of the targeted Q4 2026 MRE update, supporting the growth opportunities for SKM.