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Yandal Resources high-grade hits confirm potential Gordons Dam gold discovery

The mineralisation seen in the RC drilling has similarities to the nearby world-class Kanowna Belle gold deposit; shares increase.

Yandal Resources Ltd - Yandal Resources surges as high-grade hits confirm potential Gordons Dam gold discovery
Shares have been up 26% to an equal all-time high of 34 cents

Yandal Resources Ltd’s (ASX:YRL) high-grade gold results of up to 1-metre at 17.01 g/t have confirmed the potential for a gold discovery at the Gordons Gold Project in the highly prospective Kalgoorlie-Boulder region of WA.

Highly encouraging results from oxide and primary gold mineralisation have been returned from the reverse circulation (RC) drilling at Gordons Dam prospect.

The 1-metre intersection was within 11 metres at 1.89 g/t from 97 metres with another strong result being 4 metres at 9.48 g/t from 100 metres.

Shares have surged 26% in early trade to a new 12-month high of 34 cents, which equals the company’s all-time high, continuing an upward trend from 8 cents on March 8.

“On verge of major discovery”

Yandal Resources’ managing director Lorry Hughes said: “I believe we could be on the verge of a major discovery at Gordons Dam, each drill program has managed to improve the overall prospectivity and the potential scale of the find is emerging.

“It is early days, however, to intersect high grades and mineral alteration assemblages similar to that found at large deposits in the region is a positive sign.”

The RC program comprised 20 holes for 1,425 metres with holes completed to depths of between 60-150 metres.

Location of key prospects within the Gordons gold projects in relation to third-party infrastructure and project tenure.

High-grade shallow intercepts

A number of high-grade shallow oxide intercepts were returned from the drilling over a 100-metre strike length and the grade distribution was typically variable.

Primary mineralisation is hosted within and related to granitic porphyry rocks with distinct mineral alteration assemblages, including pyrite-sericite-silica-carbonate which is a feature of the world-class Kanowna Belle gold deposit 20 kilometres to the south.

Fifteen shallow vertical holes were designed on a 25 by 20-metre grid to provide high-quality geological and QA/QC data suitable to be included in any future mineral resource estimates and to assess the high nugget gold mineralisation within the shallow palaeochannel sediments.

Four deeper holes were completed to target extensions to porphyry and shear zone hosted mineralisation interpreted to have a south easterly strike and a moderate dip towards the northeast.

Paleochannel results

New oxide downhole RC intercepts from the Gordons Dam palaeochannel include 1-metre at 15.11 g/t within 7 metres at 2.65 g/t from 32 metres, and 3 metres at 7.59 g/t within 12 metres at 2.59 g/t from 30 metres.

Hughes said: “We have only completed half a dozen or so holes below 100 metres vertical depth and this has been limited to the area immediately east of the discovery palaeochannel.

"Now that bedrock gold has been intersected over a 700-metre strike length and it is open to the south, the target area has substantially increased.”

Aircore program

An aircore drill program comprising 30 holes for 1,648 metres was completed to test for extensions to known oxide and primary mineralisation to the north of the palaeochannel area and for extensions to primary mineralisation southeast along the currently interpreted strike direction.

Holes were drilled to blade refusal and returned numerous highly anomalous bottom of hole intercepts from 4-metre composite sampling which indicates mineralisation is present over a strike length of around 700 metres.

Importantly, this mineralisation is not closed off to the southeast with the entire strike length and potential extensions further southeast representing a high-priority exploration target for immediate follow-up.

New drilling

New aircore and RC drilling programs to expand and characterise known mineralisation are expected to begin in early June.

A diamond drilling program is also in the advanced planning stages to provide high-quality geological and structural information about the mineralisation at Gordons Dam.

This will assist with the interpretation of the geometry of the mineralisation, the recognition of any controlling structures or faults and the generation of exploration targets going forward.

Next steps

Key exploration activities planned during the remainder of this quarter include;

  • • Receive and review pending 1-metre results from the Gordons Dam aircore drilling;
  • • Receive and review pending 1-metre results from the Flushing Meadows deposit;
  • • Commence new aircore and RC drilling at the Gordons project; and
  • • Commence new diamond drilling, geotechnical and hydrogeological studies at the Flushing Meadows gold deposit to support feasibility studies.

Quick facts: Yandal Resources Ltd

Price: 0.275 AUD

ASX:YRL
Market: ASX
Market Cap: $18.67 m
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