Yugo Metals Extends High-Grade Gold Intercepts at Erak Prospect

Strong Gold Intercepts Validate Exploration Model

Yugo Metals Limited (ASX:YUG) has reported robust gold intercepts from its maiden diamond drilling campaign at the Erak Prospect within the Sinjakovo Project in Bosnia-Herzegovina. The standout result is a 36.1-metre intercept grading 2.3 grams per tonne (g/t) gold starting at 51.8 metres downhole, including a 3-metre section at 14.5 g/t and a remarkable 1-metre interval hitting 42.5 g/t Au. Additional high-grade zones include 1.9 metres at 16.0 g/t and 10.4 metres at 2.6 g/t gold, confirming the presence of significant mineralisation within a hydrothermal phyllic alteration system.

Mineralisation Remains Open and Drilling Advances

These positive intercepts remain open in multiple directions, underpinning the potential scale of the discovery. Yugo has completed nine drillholes totalling 1,057 metres at Erak to date and is actively drilling to delineate the extent of the gold system. The company plans to relocate its drilling rig to the eastern part of the prospect to test the site of the best trenching result recorded previously, a 61-metre intercept at 1.5 g/t gold. This step aims to expand the footprint of mineralisation and refine the geological model further.

Metallurgical Testwork to Inform Future Studies

Alongside drilling, Yugo is organising preliminary metallurgical testworks to assess ore characteristics, a critical input for future technical and economic studies. Executive Director and CEO Petar Tomašević emphasised the significance of the results, stating they validate the company's geological model and highlight Erak's potential to evolve into a Tier-1 gold asset. The ongoing work is designed to build a comprehensive understanding of the deposit ahead of resource estimation.

Board Incentives Aligned with Shareholder Value

In parallel with exploration progress, Yugo Metals is proposing to grant share options to its board members, subject to shareholder approval at the upcoming AGM. The options vest upon the company achieving a 20-day volume-weighted average price (VWAP) exceeding $0.10 per share within three years. This move aligns executive and director incentives with the company’s share price performance and exploration success.

Positioning for Growth in a Strategic European Mining Region

Yugo Metals’ projects are situated in the Tethyan metallogenic belt, one of Europe’s most prospective mining regions. The company is advancing base and precious metals projects near established infrastructure feeding Europe’s battery manufacturing supply chains. With drilling underway and promising assay results emerging, Yugo is building momentum in its Balkan exploration campaign, supported by recent capital raises that have bolstered its funding position for sustained activity through 2027.