Nelson Resources Launches Underground Drilling at High-Grade Gold Point Mine

Maiden Underground Drilling Commences at Orleans Mine

Nelson Resources (ASX:NES) has taken a significant step forward at its Gold Point Gold-Silver Project by commencing its first-ever underground drilling program at the historic Orleans Mine in Nevada. This milestone follows the successful rehabilitation of the upper underground workings, enabling the company to transition swiftly from restoring mine access to actively testing the underground vein system.

The initial drilling phase focuses on high-grade remnant and unmined vein positions adjacent to historic stopes, where prior mining may have left valuable mineralisation untouched. By drilling from underground platforms, Nelson can use shorter holes with improved angles and targeting precision, which is expected to materially reduce drilling costs and surface disturbance compared to conventional surface drilling. This approach aligns with Nelson’s broader underground exploration strategy across the Gold Point district, which boasts more than 5 kilometres of historic underground workings spanning five mines.

Recent sampling from the 300-foot level, now accessible for drilling, returned a striking 77.9 grams per tonne (g/t) gold and 46.1 g/t silver over one metre from fault breccia near a historic stope, highlighting the high-grade nature of the target. Previous underground samples at Orleans have recorded up to 7.34 g/t gold and 574 g/t silver, reinforcing the potential for significant mineralisation in remnant zones. These results underpin the priority given to underground drilling at Orleans and support the company's evolving 3D geological model.

Strategic Advantages of Underground Drilling

Drilling from restored underground positions offers several practical advantages. Shorter drill holes mean less drilling metres are required, directly lowering costs. The ability to orient drill holes with better geometry relative to the vein system enhances targeting accuracy. Furthermore, underground access reduces the need for new surface infrastructure, limiting environmental impact. Nelson’s strategy to leverage existing mine infrastructure for systematic underground exploration is a key differentiator in advancing Gold Point’s exploration efficiently and cost-effectively.

The initial program involves short holes, approximately 20 metres each, designed to test immediate targets where diamond core drilling is less effective. This is expected to be followed by a diamond core program using a Bazooka drill to test vein extensions up to 40 metres beyond existing workings, including potential parallel footwall structures. The program aims to deliver critical geological data to refine Nelson’s mine-scale 3D model and guide follow-up drilling across both Orleans and other historic mines in the district.

Building a Repeatable Exploration Model Across Gold Point

Gold Point’s extensive underground network, including over 20 shafts and five historic mines, provides Nelson with multiple access points to pursue a staged exploration approach. The Orleans Mine is the first priority, but the company is already planning rehabilitation at the Great Western Mine, the next target area in its underground strategy. This methodical approach involves restoring safe access, conducting detailed mapping and sampling, building 3D geological models, and drilling from optimised underground positions.

Historical records show Gold Point produced approximately 75,000 ounces of gold at an average grade between 20 and 30 g/t before World War II, mainly from just four of fifteen mapped high-grade veins. Nelson’s consolidation of the district under single ownership for the first time in over 140 years enables a unified exploration campaign aiming to unlock the broader potential of this high-grade gold-silver system.

Nelson’s recent milestones, including the restored underground access and mobilised drilling teams, set the stage for this underground program. The company’s Non-Executive Chairman, Gernot Abl, emphasised the strategic value of drilling from inside the mine to test high-grade veins with greater precision and lower costs, aiming to build a repeatable underground exploration framework across Gold Point.