leadf
logo-loader
viewYandal Resources Ltd

Yandal Resources progress at Flushing Meadows watched by Maximus Resources

Maximus has a royalty capped at $4 million over the WA project which has a 190,000-ounce resource that is set to grow.

Yandal Resources Ltd - Yandal Resources progress at Flushing Meadows watched by Maximus Resources
Yandal’s 10,000-metre drilling campaign has produced encouraging results

Yandal Resources Ltd’s (ASX:YRL) progress at Flushing Meadows is being watched intently by Maximus Resources Limited (ASX:MXR) which holds a gold royalty over the growing 190,000-ounce prospect in WA.

The company is making progress at the prospect and has a further resource upgrade pending following a 10,000-metre drilling program which has returned encouraging results.

Open pit potential

Yandal’s goal is to define an open pit development at Flushing Meadows, which has shallow deposit and has been modelled for 1.8 kilometres along strike and to an average depth of 130 metres.

Maximus’ entitlement is structured as follows:

  • $200,000 payable to MXR upon commencement of gold production;
  • Maximus is entitled to $40 per ounce for the first 50,000 ounces;
  • Maximus is entitled to $20 per ounce for a further 100,000 ounces;
  • A 3% NSR to MXR for any gold by-products (silver etc); and
  • Royalty capped at $4 million.

Part of feasibility study

Yandal’s 10,000-metre drill program began last month and is part of an open pit mining feasibility study.

Workstreams in this study include resource and reserve definition, grade control simulation, metallurgical, geotechnical and hydrogeological studies.

Maximus said it was pleased with the success of the recent drilling campaign and looked forward to Yandal’s updates on its feasibility studies at Flushing Meadows and future resource upgrades.

Royalties a value credit

A royalty is also held by Maximus over Terramin Australia Limited’s (ASX:TZN) Bird in Hand Gold Project in South Australia, which hosts a resource of 265,000 ounces at 12.6 g/t.

Maximus considers these royalties to be a significant value credit as they exceed the current market cap of the company with more than $8 million in potential value.

It said the two royalties were becoming more valuable as the price of gold was at near all-time highs and the two companies accelerated their efforts towards production.

Quick facts: Yandal Resources Ltd

Price: 0.465 AUD

ASX:YRL
Market: ASX
Market Cap: $43.11 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Yandal Resources Ltd named herein, including the promotion by the Company of Yandal Resources Ltd in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Yandal Resources welcomes new strategic investors ahead of busy period of...

Yandal Resources Ltd's (ASX:YRL) Lorry Hughes caught up with Proactive's Andrew Scott after raising $6 million in a placement to accelerate an exploration program across its suite of gold projects in Western Australia. DGO Gold Limited (ASX:DGO) subscribed for 8 million shares at 50 cents per...

on 21/10/20

2 min read