Nelson Resources secures regulatory approval for a major 11,544m drilling program at its Yarri Gold Project, with MEGA Resources backing the $10 million funding and operational management.
- Program of Work approved for 230-hole RC drilling at Yarri
- MEGA Resources to fully fund up to $10 million under Right to Mine Agreement
- Drilling contractor selection nearing completion, mobilisation imminent
- Historic high-grade gold intercepts underpin drilling targets
- MEGA managing all permitting and operational requirements
Regulatory Approval Unlocks Next Phase
Nelson Resources Limited (ASX – NES) has reached a pivotal milestone with the Department of Mines, Petroleum and Exploration granting formal approval for its extensive drilling program at the Yarri Gold Project near Kalgoorlie, Western Australia. The Program of Work (PoW) encompasses 230 reverse circulation (RC) drill holes totalling 11,544 metres, setting the stage for a significant exploration push.
Strategic Partnership with MEGA Resources
Under the terms of the Right to Mine Agreement, MEGA Resources, a subsidiary of the global mining contractor Bain Global Resources, will fully fund up to $10 million of the drilling and associated operational costs. MEGA also assumes responsibility for managing all permitting, planning, and operational logistics, leveraging its extensive expertise in mine planning and engineering. This arrangement not only mitigates financial risk for Nelson but also accelerates project momentum.
Building on Historic High-Grade Intercepts
The drilling program aims to test and expand upon several historically reported high-grade gold intercepts within the Yarri project area. Notable previous results include intercepts such as 8 metres at 18.1 grams per tonne gold and 9 metres at 14.6 grams per tonne gold, highlighting the project's potential to host economically significant mineralisation. These targets have been carefully selected to maximise the chances of discovering new zones of mineralisation.
Drilling Imminent as Contractor Selection Finalises
Nelson and MEGA are in the final stages of awarding the drilling contract, with mobilisation to site expected immediately thereafter. This swift transition from approval to field activity underscores the strong confidence both parties have in the project's prospects. The commencement of drilling will be closely watched by investors eager for assay results that could redefine the project's resource potential.
Looking Ahead
Nelson’s Chairman, Gernot Abl, emphasised the significance of the approval, noting it as a key enabler for high-impact drilling across multiple priority targets. With MEGA’s backing and operational control, the Yarri Gold Project is poised to advance rapidly, potentially unlocking new value for shareholders and stakeholders alike.
Bottom Line?
As drilling kicks off, all eyes will be on Yarri’s assay results to gauge the true scale of its gold potential.
Questions in the middle?
- How quickly will assay results from the drilling program be released to the market?
- What are the specific geological targets MEGA and Nelson are prioritising within Yarri?
- Could MEGA’s operational involvement lead to a broader partnership or future mining development?