Nelson Resources has appointed Australian Surface Drillers to execute an 11,544m drilling program at the Yarri Gold Project, fully funded by MEGA Resources under a $10 million agreement. The first phase targets high-priority zones with results expected soon.
- Australian Surface Drillers appointed for Yarri Gold Project drilling
- 11,544m RC drill program approved, with initial 3,000m phase underway
- MEGA Resources to fully fund up to $10 million under Right to Mine Agreement
- Focus on testing high-grade gold intercepts from previous exploration
- Mobilisation imminent, with progressive release of drilling results
Nelson Resources Advances Yarri Gold Exploration
Nelson Resources Limited (ASX, NES) has taken a significant step forward in its exploration efforts at the Yarri Gold Project near Kalgoorlie, Western Australia. The company announced the appointment of Australian Surface Drillers (ASD) as the contractor responsible for delivering a comprehensive reverse circulation (RC) drilling program. This initiative marks the most extensive drilling campaign undertaken at Yarri to date, with a total of 11,544 metres approved by the Department of Mines, Petroleum and Exploration.
A Phased Approach to Unlocking Gold Potential
The drilling program is structured in phases, with the initial phase targeting approximately 3,000 metres focused on high-priority targets identified through recent exploration work. These targets are designed to test and expand on historically significant gold intercepts, including notable results such as 8 metres at 18.1 grams per tonne gold and 9 metres at 14.6 grams per tonne gold from previous drilling campaigns. The program aims to build lateral continuity around these high-grade zones, potentially enhancing the project's resource profile.
Funding and Operational Management Backed by MEGA Resources
Under the Right to Mine Agreement, MEGA Resources, a subsidiary of the global mining contractor Bain Global Resources, will fully fund up to $10 million for the drilling and associated operations. MEGA will also oversee all permitting, planning, and operational requirements, leveraging its extensive expertise in mine planning and engineering. This partnership provides Nelson Resources with a robust financial and operational foundation to advance the Yarri Gold Project efficiently.
Mobilisation and Market Expectations
Mobilisation to the site is scheduled to commence shortly, with drilling activities expected to begin immediately thereafter. Nelson Resources has committed to releasing drilling results progressively, which will be closely watched by investors and analysts eager to gauge the project's potential. Chairman Gernot Abl expressed optimism about the collaboration, highlighting the importance of this milestone in advancing the project under the Right to Mine framework.
Looking Ahead
As the Yarri Gold Project enters this critical phase of exploration, the market will be attentive to the outcomes of the drilling program. Success here could significantly enhance the project's resource base and attract further investment, while also validating the strategic partnership with MEGA Resources. However, as with all exploration activities, the ultimate value will depend on the assay results and subsequent resource evaluations.
Bottom Line?
The Yarri Gold Project’s drilling campaign sets the stage for a pivotal exploration phase that could reshape Nelson Resources’ growth trajectory.
Questions in the middle?
- How will the initial drilling results influence Nelson Resources’ resource estimates and project valuation?
- What are the timelines for assay results and subsequent phases of drilling beyond the initial 3,000 metres?
- How might MEGA Resources’ operational management impact the efficiency and cost-effectiveness of the program?