Yandal Resources Ltd (ASX:YRL) is entering its second year as a listed company well positioned for continued growth in a region of WA that is the focal point for a number of strongly performing gold outfits.
Location of key prospects within the Ironstone Well, Barwidgee and Mt McClure projects in relation to third-party infrastructure and project tenure.
As well as being well-located, Yandal is well-funded with around $5 million in the bank while strengthening gold market fundamentals also provide encouragement at the start of 2020.
“Immensely satisfying” first year
Managing director Lorry Hughes told Proactive that it had been an immensely satisfying first year with the company in a great position for continued growth.
He said there were three key 2019 highlights which set the company up for the next 12 months:
- We have been able to maintain our share price above the IPO issue price.
- We have defined a maiden resource - nearly 200,000 ounces at Flushing Meadows.
- The intersection of primary gold at Gordons, a new discovery north of Kalgoorlie.
The company holds projects in the Wiluna region, Ironstone Well-Barwidgee and Mt McClure, along with the Gordons project which is further to the south.
Further results expected
After receiving strong results late last year from Flushing Meadows deposit within Ironstone Well project, including 72 metres at 1.18 g/t gold from 16 metres, further results are expected this month along with results from auger drilling of some peripheral prospects.
At the time of serving up the most recent results, Hughes said: “RC drilling results continue to provide encouragement to advance Flushing Meadows through feasibility studies and mining approvals.
“These new high-grade results improve the potential to define an economically viable open pit as they are quite shallow.”
Metallurgical test work results are expected which will enable Yandal to determine where it can best utilise funds over the next 12 months as it seeks to expand the resource at depth.
Location, location, location
Hughes said the amount of activity occurring within the region was a big plus for Yandal.
“The takeover has happened quite quickly and was a very well-orchestrated merger.
“Echo was our nearest neighbour and a lot of their ground abuts directly to ours and is along strike.
“They owned one of the closest mills to us, Bronzewing, which is as close to 30 kilometres at the nearest point to the Ironstone Well project.”
Also leveraging Yandal further to Northern Star is the Gordons discovery, which is north of NST’s multi-million-ounce Kanowna Belle deposit.
Northern Star, which recently acquired 50% of the iconic Super Pit at Kalgoorlie-Boulder, is a substantial shareholder of Yandal, holding around 14.96%.
Hughes also made special mention of Bellevue Gold and described it as “one of the market darlings” with its very high-grade resource.
In a “great position”
“Their namesake project is only around 50 kilometres to the west of our Mt McClure project and they have eight or nine drill rigs operating as they strive to upgrade and extend the resource.
“We are in a great position - we think we have the ground that can host big deposits,” he said.
Yandal has a market cap of approximately $11.1 million, shares last traded at 25 cents and in the past year securities have traded from 19 cents to 34 cents.
Managing director Lorry Hughes.
Hughes said the company expected more of the same during 2020.
“We are well cashed up with around $5 million in the bank and just a few drilling costs to pay.
“After raising $5 million in the IPO, we raised another $2.8 later in the year, which puts us in a good financial position going forward.”
He said beyond the drilling and test results, and further near-term drilling, the company would devote time and effort towards gaining mining approvals for Flushing Meadows along with more discovery work at Mt McClure and Gordons.