Nelson Resources Poised to Launch $10M Drilling Campaign at Yarri Gold Project
Nelson Resources has submitted a Program of Work for an extensive drilling program at its Yarri Gold Project, with MEGA Resources set to fully fund operations up to $10 million. Drilling is expected to begin shortly after regulatory approval.
- Program of Work submitted for 230-hole, 11,544m RC drilling at Yarri
- MEGA Resources to fully fund operations up to $10 million under Right to Mine Agreement
- Drilling contractor selection underway, with mobilization pending PoW approval
- Yarri project hosts multiple high-grade gold intercepts from historic drilling
- Drilling aims to refine mine planning and production scheduling
Strategic Drilling Program Submitted
Nelson Resources Limited (ASX, NES) has taken a significant step forward in advancing its Yarri Gold Project near Kalgoorlie, Western Australia, by submitting a comprehensive Program of Work (PoW) to the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS). The PoW outlines plans for a substantial reverse circulation (RC) drilling campaign comprising 230 holes totaling 11,544 meters. This initiative is designed to target high-priority zones within the project area, with the ultimate goal of enhancing resource definition and informing future mine development strategies.
Partnership with MEGA Resources Brings Financial and Operational Muscle
Central to this development is Nelson’s partnership with MEGA Resources, an Australian subsidiary of the global mining contractor Bain Global Resources. Under a recently executed Right to Mine Agreement, MEGA will fully fund the drilling operations up to $10 million. Beyond financing, MEGA brings extensive expertise in mine planning, engineering, and project management, including handling all permitting and regulatory approvals. This arrangement significantly de-risks the project’s exploration phase for Nelson, allowing the company to leverage MEGA’s operational capabilities.
Drilling Contractor Selection and Timing
Nelson and MEGA are currently finalizing arrangements with drilling contractors, with a contract award expected imminently. Drilling is slated to commence promptly upon receipt of PoW approval from DEMIRS and contractor mobilization. While the company anticipates no issues with regulatory approval, the timing remains contingent on this process. The swift initiation of drilling will be critical to maintaining momentum and capitalizing on the promising geology at Yarri.
High-Grade Gold Intercepts Highlight Potential
The Yarri Gold Project has a history of impressive gold intersections, underscoring its exploration potential. Notable historic drill results include intercepts such as 8 meters at 18.1 grams per tonne gold, including 3 meters at 44.1 grams per tonne, and 9 meters at 14.6 grams per tonne, including 4 meters at 30.2 grams per tonne. These grades are significant and suggest that the upcoming drilling program could yield valuable data to support resource expansion and mine planning.
Looking Ahead
Nelson’s Executive Chairman, Gernot Abl, expressed confidence in MEGA’s approach and eagerness to commence high-impact drilling. The company’s focus is clear, to delineate resources that will underpin future production schedules and enhance project economics. As the drilling campaign unfolds, market participants will be watching closely for assay results and any indications of resource growth that could drive the next phase of development at Yarri.
Bottom Line?
With funding secured and drilling imminent, Yarri’s next chapter could reshape Nelson’s growth trajectory.
Questions in the middle?
- When exactly will DEMIRS approve the Program of Work, enabling drilling to start?
- Which drilling contractor will be selected, and what impact might their expertise have on operational efficiency?
- How will the upcoming drilling results influence Nelson’s resource estimates and mine planning?
