Arras Minerals Corp. (ARK:TSX.V; ARRKF:OTCMKTS) released initial results from its 2026 drilling campaign at the Elemes project located in northeastern Kazakhstan, according to an April 23 release.
The drilling, which resumed in late February, began with the first two holes at the Berezski East target, part of the Elemes project. To date, only five holes have been completed at this site, which is emerging as the third porphyry center identified on the Berezski trend in the last two years.
Berezski East is characterized as a gold-rich porphyry system situated along a northeast-southwest structural corridor, the company said. The mineralization at this site includes magnetite and quartz-sulfide veins, with some occurrences of bornite dissemination. This mineralization aligns with a significant magnetic high feature that extends along strike for at least 800 meters.
Notably, gold-copper mineralization has been observed from the surface down to depths exceeding 400 meters, with some higher-grade intervals reaching and surpassing 1 gram per tonne (g/t) gold over core lengths of more than 100 meters.
In one of the drill holes, EL26031, a fault zone was encountered at a depth of 315 meters, beyond which there was a marked increase in brecciation, potassic alteration, and a rise in veining and copper-sulfide mineralization, Arras said. This zone reported higher copper values than previously seen at this target and may represent a new vector towards the core of the system. Key highlights from the drilling include hole EL25031, which yielded 115.7 meters grading 1.44 g/t gold and 0.24% copper starting from 317.3 meters depth within a broader zone of 424 meters grading 0.5 g/t gold and 0.12% copper starting from 9 meters depth.
"We are pleased to report the Berezski East target is firming up as a third porphyry center on the Berezski trend," Chief Executive Officer Tim Barry said. "Hole EL26031 has confirmed and extended gold mineralization intersected by earlier drilling, but importantly also intersected a major fault zone that appears to act as a key structural control on mineralization. Below this structure, there was a significant increase in the intensity of alteration, veining, and mineralization indicative of a robust mineralized system."
The CEO continued, "The five holes that we have drilled to date cover 400 meters of strike, and the target, we believe, stretches at least a further 400 meters to the northeast. … We are planning a top-of-bedrock (KGK) drill program over the Berezski East target to help define the footprint of the gold-copper mineralization under the cover at this target that we will then follow up with diamond drilling on priority targets here."
Consistent Wide Zones of High-Grade Gold Mineralization
Arras Minerals noted in the release that drilling operations at Berezski East (located in northeastern Kazakhstan) have consistently yielded wide zones of high-grade gold mineralization, indicating the expanding scale of this mineral system. The mineralized zones, characterized by a northeast/southwest orientation, align with a linear magnetic high.
Interestingly, the company said recent drilling results from December 2025 in the KGK area have also revealed promising gold values in an adjacent magnetic low to the east, suggesting the presence of multiple parallel gold systems in the region.
To date, Arras said it has completed five drill holes at Berezski East, successfully confirming robust gold-copper (Au-Cu) mineralization across a 400-meter strike length and down to depths of at least 400 meters. One particular drill hole, EL26031, extended the mineralization to significant depths, revealing a large, vertically extensive porphyry-style hydrothermal system. This hole intersected extensive zones of gold-copper mineralization, with notable increases in alteration and vein density below a major fault zone at 315 meters depth. This suggests a crucial structural control over the mineralization, which may explain why another hole, EL26030, only encountered narrow zones of gold, likely because it was drilled adjacent to this key structural feature.
Currently, four diamond drill rigs are operational at the Elemes project, with three at the Berezski North target and one recently started at the Novii target, the company said. Since drilling recommenced in late February, seven holes totaling nearly 5,000 meters have been completed, with assays pending for five holes. Following a winter break, drilling resumed in February as part of the ongoing 20,000-meter phase II diamond drill program, which began in June of the previous year. Given the strong results obtained, Arras Minerals plans to expand this program to 30,000 meters, aiming for completion by the end of 2026.
The Elemes project, managed by Arras Minerals, encompasses two exploration licenses covering 531 square kilometers in northeast Kazakhstan, strategically located approximately 13 kilometers southwest of Ekibastuz and 20 kilometers from Arras's operational base. The project is advantageously positioned within the prolific Bozshakol-Chingiz metallogenic belt, close to significant regional deposits such as the Beskauga porphyry copper-gold-silver deposit and KAZ Minerals' Bozshakol copper-gold mine. These neighboring mines reported notable mined grades in the first quarter of 2025, highlighting the region's mineral richness.
The exploration efforts at Elemes have been robust, with a phase 1 drill program on the Berezski trend in late 2024 yielding high-grade porphyry/epithermal copper and gold mineralization, the company said. Following these promising results, a phase 2 drill program commenced in May 2025, initially planned for 20,000 meters but later expanded to 30,000 meters due to the strength of the findings, with completion anticipated by the end of 2026.
Co. To Expand Drilling Efforts
The initial results from the drilling program at the Berezski Trend showed significant findings from drill hole EL26031, which confirmed and extended gold mineralization with a 400-meter strike length and targeted an additional 400 meters to the northeast, Analyst Oscar Norris wrote for Hannam & Partners in an April 24 note.
Notably, this hole intercepted 424m at grades including 0.5g/t gold, 0.12% copper, 0.62g/t silver, and 3.26 ppm (parts per million) molybdenum starting from a depth of 9 meters, the analyst said. A particularly high-grade section of this hole, spanning 115.7 meters starting from 317.3 meters depth, yielded 1.44 g/t gold and 0.24% copper among other values, suggesting the intersection of the outer porphyry and potentially the core of the porphyry system at greater depths.
Another drill hole, EL26030, aimed to test the continuity of copper-gold mineralization north of Berezski East, Norris noted. It is interpreted to have intersected the footwalls of structures controlling the high-grade copper-gold mineralization seen in EL26031 and previously in EL25019. These results collectively underscore a robust set of findings as Arras continues to delineate the scale and grade of the Elemes project, with four drill rigs actively operating and 5,000m drilled across seven holes since drilling resumed in February.
Norris maintained the firm's target valuation at CA$1.80 per share, reflecting a 114% upside at the time of writing, with further drill results anticipated as a key catalyst. Since drilling recommenced at Berezski East, five holes have been completed, defining a 400-meter strike length with an additional 400 meters expected to be defined by future drilling, supported by a magnetic high feature. Notably, hole EL26031 also uncovered a new fault zone, suggesting a potential key structural control of mineralization. This new structure indicates a possible vector towards the core of a third porphyry center on the Berezski Trend.
Looking ahead to the rest of 2026, the analyst noted that Arras plans to expand its drilling efforts to the west and south of Berezski North, aiming to uncover further high-grade, near-surface mineralization. The 2026 drill program is set to total 20,000 meters across the Berezski area, with potential expansions based on ongoing results. The company's extensive exploration efforts are underpinned by a robust valuation model, projecting a significant upside to the current share price, reflecting the substantial exploration potential and the strategic development of its assets.
Chen Lin wrote in his What is Chen Buying? What is Chen Selling? newsletter on April 13 that the company was "having a nice rebound on the new drilling results, 115.7 meters of 1.44 g/t gold and 0.24% copper. It looks like a third target is found."
The Catalyst: Gold Heading Toward Weekly Loss
On Friday, gold prices saw a modest increase, yet the precious metal is still tracking towards a weekly loss amid faltering peace talks between the U.S. and Iran, which have led to a surge in oil prices, according to a report by Scott Kanowsky for Investing.com on April 24. This rise in oil prices has heightened concerns about potential spikes in energy-driven inflation and the possibility of enduring high interest rates.
As of 08:31 am, spot gold had risen by 0.3% to US$4,707.43 an ounce, while gold futures remained relatively stable at US$4,724.11 an ounce. Over the course of the week, spot gold prices have decreased by 2.6%, and gold futures have fallen by 3.2%, Kanowsky wrote.
Despite a drop in earlier gains on Friday, oil prices remained over US$100 a barrel. The ongoing U.S.-Iran conflict, with President Donald Trump indicating no immediate intent to conclude the war, has contributed to what is expected to be the largest weekly increase in oil prices since early March. This situation has reignited concerns that inflation could intensify, potentially prompting central banks to raise interest rates. Gold, which does not yield interest, typically underperforms in environments where interest rates are high.
Analysts at ING noted the lack of clarity regarding the next developments in the Middle East conflict, suggesting that inflation pressures might be expanding. Concurrently, the U.S. dollar has seen a slight increase this week, which could diminish the appeal of dollar-denominated gold for international buyers. The dollar index, which tracks the greenback against a basket of other major currencies, was trading mostly flat, reflecting these dynamics.
Gold has experienced a remarkable surge in value over the past couple of years, initially surpassing the US$3,000-per-ounce mark in 2025 and then breaking the US$4,000 threshold shortly after, noted Aly J. Yale for CBS News MoneyWatch on April 24. This upward trend continued into 2026, with gold prices reaching an unprecedented US$5,000 per ounce in the early months of the year. However, there has been a recent pullback, with prices dropping to around US$4,400 in March, though they still remain near record highs, with current values over US$4,700 per ounce as of mid-April.
The question now arises: will gold prices continue to decline, and if so, how much further could they fall? Experts have weighed in on this topic, suggesting that a further decrease in gold prices is possible.
Thomas Winmill, a portfolio manager at Midas Funds, told the author he believes that a 10% to 20% drop could be within the realm of possibility. Meanwhile, Brett Elliott, director of content at the American Precious Metals Exchange (APMEX), forecasted that gold could average around US$4,500 this year, with the potential to reach as high as US$5,800. However, he also acknowledges the downside risk, indicating that prices could fall as low as US$4,000.
Streetwise Ownership Overview*
Arras Minerals Corp. (ARRKF:OTCMKTS)
Elliott also highlighted the likelihood of significant volatility in the gold market throughout the year. He noted that while a US$500 swing in gold prices would have once been considered extraordinary, recent fluctuations have seen gold prices swing from US$5,400 to US$4,100 in just a few weeks. Such dramatic shifts underscore the current unpredictable nature of the gold market, with more volatility expected going forward.
Ownership and Share Structure1
About 7% of the company is held by insiders, about 20% by strategic corporate entities like Sprott Asset Management and Teck Resources Ltd., and about 22% by institutions. The rest is retail.
Top shareholders include Equinox Partners Investment Management with 12.44, Sprott with 10.05%, Brian Douglas Edgar with 1.37%, Darren E.V. Klinck with 1.18%, and Eart Resource Investment Group with 1.17%.
Its market cap is CA$102.74 million with 122.31 million shares outstanding. It trades in a 52-week range of CA$0.53 and CA$1.07.
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- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
