Nelson Resources Secures Mining Leases and $10M Funding for Yarri Gold Expansion

• Mining leases M31/503 and M31/504 granted at Yarri Gold Project
• Native title and tenure milestones achieved, reducing project risk
• MEGA Resources to fully fund up to A$10 million in development
• Northern mineralised corridor with historic high-grade drill results now accessible
• Initial ~3,000m RC drilling program planned as part of broader ~11,544m campaign

Mining Leases Unlock Expansion and Derisk Yarri Project

Nelson Resources (ASX:NES) has crossed a significant threshold with the formal granting of Mining Leases M31/503 and M31/504 at its Yarri Gold Project, located 140km northeast of Kalgoorlie, Western Australia. These leases secure essential tenure and follow the recent Native Title Agreement with the Nyalpa Pirniku People, substantially derisking the project and clearing the path toward development readiness.

The granting of M31/504 covers the area already approved for a Program of Works, enabling an initial ~3,000m reverse circulation (RC) drilling campaign. This forms the first phase of a broader ~11,544m drilling program fully funded and managed by MEGA Resources, the Goldfields mining services provider with an order book exceeding A$18 billion.

Northern Corridor Offers Untested High-Grade Potential

Crucially, the simultaneous granting of M31/503 opens immediate access to the northern mineralised corridor, an area boasting significant historic drill intercepts that remain untested by modern exploration. Highlights include a standout 6m at 13.2g/t gold from 15m depth, featuring a 1m interval grading 69.9g/t Au, alongside other notable intercepts such as 3m at 4.8g/t and 5m at 1.13g/t.

This northern corridor expansion enhances Nelson’s flexibility to prioritise and sequence exploration and development across multiple mineralised zones, potentially adding substantial optionality to the Yarri district’s value proposition.

MEGA Resources to Fully Fund Initial Development

Under a Right to Mine Agreement, MEGA Resources will fully fund up to A$10 million in initial development and working capital, managing all permitting and approvals. This arrangement reflects a low-capital risk pathway for Nelson, as MEGA will also undertake mining and haulage to a third-party processing plant once a mining decision is reached.

Nelson’s Chairman, Gernot Abl, emphasised the milestone’s importance, noting that securing the mining leases not only confirms tenure but also unlocks expansion into high-grade mineralised areas, reinforcing the project’s optionality.

This development follows Nelson’s recent progress in securing a Native Title and Mining Agreement with the Nyalpa Pirniku People, a critical step that removed key obstacles to mining lease grants and enabled MEGA’s funding commitment, as detailed in the company’s earlier announcement on 12 April 2026.

Next Steps: Drilling and Development Trajectory

The imminent ~3,000m RC drilling program marks the start of MEGA’s broader exploration campaign, targeting both the granted lease areas and the newly accessible northern corridor. These drilling results will be pivotal in defining resource extents and guiding subsequent development decisions.

While the Yarri Gold Project’s funding and tenure position it well for advancement, the ultimate success hinges on the outcomes of these upcoming drilling programs and ongoing regulatory approvals. Nelson’s ability to leverage MEGA’s substantial funding and operational expertise could accelerate its path to mining, but the inherent uncertainties of exploration remain.

Bottom Line?

Nelson’s tenure and funding milestones at Yarri set the stage for a critical drilling phase that will test high-grade potential and shape the project’s development trajectory.

Questions in the middle?

• Will upcoming drilling confirm the high-grade potential of the northern mineralised corridor?
• How effectively will MEGA Resources manage permitting and approvals to maintain project momentum?
• What are the implications of the Native Title Agreement for long-term community relations and project sustainability?