Castle Minerals has focused on its Kambale graphite project in Ghana for years. Amidst rising gold prices and a slowing graphite market, the company has been shifting its attention to gold projects in Ghana.

On March 3, 2025, Castle Minerals said it seeks A$3 million (US$1.86 million) to keep exploring for gold at its Kpali project in Ghana. The announcement marks a shift towards gold, as the company has primarily focused on its Kambale graphite project in the same region. 

Castle said it plans to raise the funds through a share placement involving existing shareholders and new investors. Proceeds will support reverse circulation drilling campaigns at Kpali. Last year, initial drilling works at the site revealed a gold-rich zone with an intercept averaging 8.29 g/t gold over 12 meters from a depth of 25 meters.

Castle is increasing its focus on gold projects in Ghana, including Kpali and Kandia, where progress has been slow at the latter. This shift comes as gold prices hit record highs. They surpassed $2,900 an ounce last month, and according to analysts from Citigroup and Goldman Sachs, they should exceed $3,000 this year. The price dynamic sparked investors’ interest and created favorable conditions for companies like Castle.

Nevertheless, Castle’s exploration campaigns may not yield economically viable projects, as identified resources might not justify a mine. Falling gold prices could also dampen investor interest. However, Castle can still rely on its Kambale graphite project, which recently gained support from Ghana’s Sovereign Wealth Fund.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho