Nelson Resources has made Gold Point the centrepiece of its exploration strategy, with underground drilling underway in Nevada and exploration assets rising to A$2.81 million. The push came alongside a wider A$1.17 million FY2026 loss, A$2.10 million in cash and continued reliance on equity funding.
- A$1.17 million FY2026 net loss, up from A$838,606
- A$2.10 million cash balance after A$3.25 million placement
- Gold Point underground drilling and Great Western rehabilitation underway
- Yarri structured around MEGA funding up to A$10 million
- 1.78 billion options and 1.35 billion performance rights outstanding at year-end
Gold Point becomes Nelson’s central exploration bet
Nelson Resources Limited (ASX:NES) has spent FY2026 turning Gold Point in Nevada from an acquisition into its main exploration campaign. The company reports high-grade results from historic workings and surface sampling, including underground channel sampling of 1.83 metres at 113.5 grams per tonne gold and 119 grams per tonne silver at the Orleans Mine. Maiden underground drilling began in the June quarter, while follow-up diamond drilling of up to 15 holes is underway.
Those results remain exploration results rather than a mineral resource or economic assessment. Nelson says the 31-square-kilometre district includes historic production of at least 75,000 ounces of gold, while its own work has included mapping, systematic sampling, 3D modelling and a CSAMT geophysical survey. Rehabilitation has also started at the Great Western Mine, and metallurgical testwork is progressing.
Losses widen as exploration spending accelerates
The financial cost of that activity is already visible. Nelson reported a net loss of A$1.17 million, compared with A$838,606 in FY2025, while net cash used in operating activities rose to A$952,514. Exploration and evaluation assets increased from A$930,629 to A$2.81 million, reflecting Gold Point acquisition costs and capitalised exploration expenditure.
Cash stood at A$2.10 million at 30 June 2026, after A$3.40 million of net financing inflows. The company raised A$3.25 million through a placement, issued 541.7 million shares and attached options, and also issued 46.4 million shares to the Gold Point vendor. With no operating revenue beyond A$39,465 of interest income, the balance sheet remains dependent on exploration outcomes and access to future capital.
Yarri offers a funded route to drilling and development
Yarri provides a different funding structure. Under its agreement with MEGA, an Australian subsidiary of Bain Global Resources, MEGA is to sole-fund up to A$10 million in initial development and working capital through a decision to mine, with repayment limited to project revenues. Profits are to be split 70:30 in MEGA’s favour, and MEGA is responsible for mining, haulage, approvals and related compliance within the agreed mining areas.
That arrangement is not yet a production outcome. Conditions include conversion of the relevant prospecting licences to mining leases and an ore purchasing agreement with a third-party processor. A 230-hole reverse-circulation programme totalling 11,544 metres is being prepared, with an initial 3,000 metres scheduled for the second half of 2026, subject to an approved Program of Work.
Capital structure carries substantial future dilution
Nelson’s issued securities show the scale of the funding and incentive architecture around the exploration strategy. As at 21 September, the company had 2.785 billion ordinary shares, 1.734 billion listed options exercisable at A$0.003, 50 million unlisted options exercisable at A$0.0015, and 1.245 billion Class A to G performance rights. The performance milestones include share-price hurdles, 10,000 metres of Gold Point drilling and a JORC-compliant 500,000-ounce mineral resource.
The report’s securities disclosures are not perfectly aligned: the remuneration report refers to 195 million performance rights issued to directors, while the financial statements refer to 255 million rights issued to directors and an external consultant. The broader register separately identifies vendor performance rights tied to a future Gold Point resource and production milestones. Investors will need to reconcile these figures when assessing the potential impact on the share count.
Board changes and the next technical tests
After year-end, Louis Bucci resigned as executive director on 6 July 2026 and Nicholas Ong joined the board as a non-executive director. Nelson also staked 186 federal lode claims covering about 15.5 square kilometres at the Cinnamon tungsten property in Nevada, while no field work was undertaken at Woodline, Tempest or Fortnum during the year.
The immediate tests are practical rather than rhetorical: whether Gold Point drilling can convert high-grade sampling into a coherent resource, whether metallurgical work supports recoveries, and whether Yarri clears its tenure and processing conditions. The company’s A$2.10 million cash balance provides a starting point, but the pace of exploration will determine how quickly that cushion becomes another financing question.
Bottom Line?
Nelson has assembled an active Nevada exploration pipeline, but the investment case now depends on drilling converting high-grade indications into a defined resource before cash and dilution become the dominant story.
Questions in the middle?
- Can Gold Point drilling establish a JORC-compliant resource of sufficient scale and grade?
- Will metallurgical testwork and mine rehabilitation support a credible development pathway at Orleans and Great Western?
- Can Yarri satisfy its mining lease and processing conditions without requiring capital from Nelson?
- How should investors reconcile the differing performance-right figures across the annual report disclosures?