Cullen Resources has secured a binding term sheet to acquire a 90% interest in the Yardilla Project, expanding its footprint in Western Australia's Eastern Goldfields. The company highlights promising gold-in-calcrete anomalies and drill-ready targets, while focusing exploration efforts on Yardilla and Wongan Hills.
- Binding term sheet signed to acquire up to 90% interest in Yardilla exploration licence
- Combined land package of ~325 sq. km along Yilgarn craton's SE margin
- Significant gold-in-calcrete soil anomalies identified with historical drilling confirming mineralisation
- RC drilling at Wongan Hills tested IP anomalies but further work needed
- Plans to divest less prospective projects to focus on Yardilla and Wongan Hills
Strategic Acquisition at Yardilla
Cullen Resources Limited has taken a decisive step forward in its exploration strategy by signing a binding term sheet to acquire up to a 90% interest in Exploration Licence Application ELA63/2463, covering approximately 150 square kilometres in the Eastern Goldfields of Western Australia. This area lies about 90 kilometres east of Norseman and 50 kilometres southwest of the Nova Nickel Mine, positioning Cullen in a highly prospective gold region.
Adding to this, Cullen already holds 100% ownership of the adjoining ground (ELA63/2487), which is not part of the current option-to-purchase agreement. Together, these tenements create a substantial combined land package of around 325 square kilometres along the southeastern margin of the Yilgarn craton, capturing a 30-kilometre strike length of a prospective target trend.
Promising Exploration Results
Exploration to date has identified two significant gold-in-calcrete soil anomalies, named "Lila" and "Cleanthes," with values ranging from 14 to 86 parts per billion (ppb) gold over areas up to 5 by 1 kilometre. Historical RAB drilling intersected multiple mineralised zones, including several assays exceeding 1 gram per tonne (g/t) gold, associated with pyritic, biotitic, and sericitic mafic and felsic bedrocks. These zones are supported by copper, silver, and tungsten anomalies, indicating a complex mineral system.
Importantly, these anomalies remain open along strike and at depth, having not been tested by more advanced reverse circulation (RC) drilling. Cullen plans to pursue further air core (AC) and RC drilling to evaluate these compelling targets, applying a Tropicana-style deposit model given the geological similarities of the Yardilla area to the Tropicana gold deposit located 380 kilometres northeast.
Wongan Hills and Other Projects
At the Wongan Hills Project, RC drilling completed in December tested induced polarization (IP) chargeability anomalies at the Rupert and Wongan prospects. While barren sulphide zones were intersected at Rupert, the source of the Wongan anomaly remains unexplained. Despite low precious and base metal assay results, geological and geophysical data suggest that further drill testing of soil anomalies and VTEM targets is warranted.
Meanwhile, reconnaissance soil sampling at the Barlee, North Tuckabianna (Cue), and Bromus South Projects did not yield significant anomalies for gold, base metals, or lithium. As a result, Cullen plans to divest interests in these projects to concentrate resources on the more promising Yardilla and Wongan Hills projects.
Joint Ventures and Royalties
Cullen maintains a 30% interest in a Finnish joint venture with Capella Minerals Limited, which is funding exploration activities targeting copper and gold in the Central Lapland Greenstone Belt. Drilling is planned to commence in early 2025. Additionally, Cullen holds a 49% interest in the Mt Eureka JV with Rox Resources, which recently completed RC drilling targeting gold, PGE, and nickel, with assay results pending.
The company also benefits from iron ore royalties in the West Pilbara region, including a 1% FOB royalty over future production from the Catho Well Channel Iron Deposit and a 1.5% FOB royalty on up to 15 million tonnes from the Wyloo Project, offering potential future cash flow opportunities.
Financial and Corporate Overview
During the quarter, Cullen's exploration expenditure was $270,000, covering data compilation, soil sampling, and RC drilling activities. The company ended the period with $303,000 in cash and continues to monitor its funding position closely. Payments to related parties, including executive and non-executive directors, amounted to $84,000 for the quarter.
Managing Director Dr. Chris Ringrose emphasised the rarity and potential of the Yardilla project, describing it as a "very rare example of substantial Greenfields gold anomalies" that remain underexplored. He highlighted the project's drill-ready targets and the significant scope for discovery within the extensive unexplored areas.
Bottom Line?
Cullen's focused push into Yardilla and Wongan Hills sets the stage for a pivotal exploration phase that could reshape its growth trajectory.
Questions in the middle?
- Will upcoming RC drilling at Yardilla confirm the presence of economically viable gold mineralisation?
- How will Cullen manage funding to sustain exploration activities beyond the current cash reserves?
- What timeline can investors expect for assay results from the Mt Eureka JV drilling program?