Nelson Resources Launches Underground Drilling and Expands Tungsten Holdings

High-Grade Drilling Commences at Orleans Mine

Nelson Resources (ASX:NES) has initiated its maiden underground drilling campaign at the historic Orleans Mine within its Gold Point Project in Nevada, marking a significant step in its staged underground exploration strategy. Rehabilitation of the mine's upper levels was completed, restoring access and enabling drill platforms. Early chip samples from fault breccia adjacent to a historic stope returned impressive assays of 77.9g/t gold and 46.1g/t silver over a one-metre interval, underscoring the high-grade nature of the target.

The initial drilling phase involves short holes targeting remnant veins near historic stopes, followed by plans for up to 15 diamond core holes to test vein extensions up to 40 metres beyond existing workings, including potential parallel structures. Underground drilling is expected to provide better precision and cost efficiencies compared to surface drilling. Nevada Rand LLC, the contractor behind the rehabilitation, has been appointed to continue with the diamond drilling program, ensuring operational continuity.

Expanding Underground Exploration at Great Western Mine

Following the Orleans progress, Nelson has commenced rehabilitation at the Great Western Mine, another historic high-grade site within the Gold Point district. The approach mirrors Orleans: stabilise underground access, conduct detailed mapping and sampling, and define drill targets. Recent surface sampling in the Great Western and Grand Central areas has yielded multiple high-grade gold results, including assays up to 32.2g/t and 31.7g/t gold.

These efforts feed into the development of a comprehensive 3D geological model covering more than five kilometres of historic underground workings across the district. Nelson aims to replicate the Orleans exploration model across the broader Gold Point system, which includes over 5km of underground workings and multiple access points, positioning the company to unlock further high-grade gold-silver opportunities.

Strategic Acquisition of Cinnamon Tungsten Property

Nelson has bolstered its critical minerals portfolio by securing the Cinnamon Tungsten Property, comprising 186 claims over 15.5 square kilometres immediately adjoining Guardian Metal Resources’ advanced Pilot Mountain Tungsten Project. This neighbouring asset benefits from substantial US Department of Defense funding, highlighting its strategic importance.

A high-resolution helicopter-borne magnetic and radiometric survey has been completed to refine skarn targets, and fieldwork including geological mapping and rock-chip sampling has accelerated. The property’s prospective tungsten skarn mineralisation offers Nelson a foothold in a district with strong critical minerals credentials, complementing its gold exploration activities.

Financial Position and Project Pipeline

Nelson reported $794,000 in exploration and evaluation expenditure for the quarter, with administrative costs at $162,000. The company ended June 2026 with approximately $2.1 million in cash, supporting ongoing exploration and development at Gold Point and Cinnamon. No production activities occurred during the quarter.

Elsewhere, the Yarri Gold Project has advanced through regulatory milestones, including granted mining leases and a signed Native Title Agreement, enabling a planned 11,544-metre reverse circulation drilling program. However, no field activities were reported this quarter at Yarri or other Australian projects such as Woodline, Tempest, or Fortnum.