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Yandal Resources maintains steady growth path with drill rigs set to continue high-grade gold chatter

Snapshot

The company has an exciting portfolio of highly prospective gold projects in the Yandal and Norseman-Wiluna Greenstone Belts in Western Australia.

Yandal Resources Ltd -

Quick facts: Yandal Resources Ltd

Price: 0.44 AUD

ASX:YRL
Market: ASX
Market Cap: $41.16 m
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Yandal Resources Ltd (ASX:YRL) has a pipeline of priority gold projects which it intends to substantially grow over the next 12 months to increase value for shareholders thereby maintaining and enhancing the momentum of 2020.

With a market cap of around $43 million and cash in the bank totalling more than $11 million as of October 29, 2020, the company is well-funded to carry out its two-stage strategy with the aim to start production and make discoveries:

  • Strategy 1- to rapidly build JORC resources and develop mines; and
  • Strategy 2- to define and drill test best greenfield targets and make new discoveries.

Capital raising to accelerate exploration

In October managing director Lorry Hughes spoke to Proactive about new investors on the company’s registrar ahead of a busy period of exploration at both Flushing Meadows prospect within the wider Ironstone Well Gold Project and Gordons Dam prospect within the Gordons Gold Project.

Gold projects in Western Australia.

DGO Gold Limited (ASX:DGO) subscribed for 8 million shares at 50 cents per share as part of a capital raising, which was also supported by another institutional investor, Regal Funds Management Pty Ltd (RFM), taking the 4 million shares at 50 cents per share.

The institutional raise resulted in a total of $6 million, which Hughes said would be used to accelerate exploration programs including resource development and extension drilling at Flushing Meadows, advanced drilling at Gordons Dam to test beneath and along strike of the high-grade paleo-channel and further exploration at the Ironstone Well, Barwidgee and Mt McClure projects.

He said: “It was a great offer, and we were happy for those two entities to come on board – for their experience in investing in gold markets and also for their technical experience in Western Australia.

“We have a total of $11.5 million now to have a good crack at extending our resources.”

Advancing drilling programs

Hughes said Yandal’s plan for the remainder of the year and beyond was to "drill, drill, drill".

He said: “We have fantastic ground, huge potential – we are in areas where there are multi-million-ounce deposits, that’s a very big tick

“Importantly we have historic mineralisation as well as potential new mineralisation – so I believe our discovery cost per ounce has so far been $5 per ounce and I think going forward we should be able to maintain that or at least target less than $10 per ounce per discovery.”

At Ironstone Well and Barwidgee projects a combination aircore (AC) and reverse circulation (RC) drill program totalling around 6,200 metres is planned to be completed by mid-December testing a number of targets on the prospective Barwidgee Shear Zone along strike from the Flushing Meadows deposit and at Quarter Moon, Oblique and Flinders Park prospects.

Significant historic mineralisation has been intersected at all these prospects and the purpose of the program will be to confirm this mineralisation and, if successful, design new more comprehensive resource confirmation RC programs.

Key activities planned during the December 2020 and March 2021 quarters at the Gordons project include:

  • Receive and review pending results from the AC program and compile a maiden mineral resource estimate for Gordons Dam;
  • Complete three-hole diamond drilling and sampling program and commence a 10,000 metres follow-up RC program;
  • Prepare and commence 10,000 metres follow-up AC program; and
  • Begin feasibility and mining approval activities.

Steadily growing since 2018 

Although it has taken a while for the market to catch on to YRL’s opportunity Hughes said the company had been steadily growing since it listed on the ASX in 2018.

He said: “You’ve got to let the drill rig do the talking before people start to pile in.

“There are plenty of drilling results to be expected in the next 6 to 12 months.”

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