Yandal Resources Ltd (ASX:YRL) in Western Australia has a two-pronged approach to adding shareholder value by looking for new discoveries and exploring on ground the company knows to be prospective.
The newly listed company hopes to build JORC resources and rapidly develop mines while also developing and drilling its best greenfields targets so it can make new discoveries.
Yesterday Yandal reported success from a drilling program undertaken last month at Gordons Gold Project north of Kalgoorlie in WA, sharing high-gold gold intersections such as 8 metres grading 7.33 g/t gold from 35 metres.
The reverse circulation (RC) assays from the wholly-owned project included a 1-metre section at 47.96 g/t gold from 36 metres.
Gordons Dam is also north of Northern Star Resources Ltd (ASX:NST) (FRA:NS7) (OTCMKTS:NESRF) Kanowna Belle deposit of more than 12 million ounces.
Northern Star joined Yandal’s share registry during the company’s initial public offering (IPO), throwing its support behind the tightly-held newcomer whose top 20 shareholders own 80% of the company.
The high-grade underground mines holder has backed Yandal as it has done for another junior player in the Yandal greenstone belt area, Echo Resources Limited (ASX:EAR) (FRA:E1L), which is hoping to reopen a mill nearby.
Yandal managing director Lorry Hughes told Proactive Investors he believed there was potential for consolidation along the Yandal greenstone belt which has been proven to host Tier 1 gold deposits.
Hughes told the market yesterday, “Our Yandal projects contain numerous prospects that are along strike or adjacent to significant historically-reported deposits and the exploration team is looking forward to thoroughly testing several of them in the first half of the year.”
The company is planning a systematic campaign of RC, aircore and diamond drilling this calendar year as it aims to define historical deposits under the current JORC code, make discoveries and define new resources.
Yandal’s 100-square-kilometre Gordons project is one of four priority projects for the company, which are all included in the campaign.
The other three key projects are the 100%-owned Ironstone Well, Barwidgee and Mt McClure gold projects.
Yandal Resources' prospective land near the North Star and Echo resources companies north of Kalgoorlie-Boulder in WA
Ironstone Well and Barwidgee projects
Ironstone Well and Barwidgee take in 472 square kilometres and feature a 55-kilometre strike of contiguous mining tenements over prospective Yandal belt rocks.
They are 35-85 kilometres south of Northern Star’s Jundee mine where 1.8 million tonnes of ore are mined underground a year, with its carbon-in-leach (CIL) plant able to process the same capacity.
The Barwidgee shear zones hosts significant gold prospects such as Flushing Meadows at Ironstone Well project where Yandal returned a high-grade intersect of 15 metres at 2.03 g/t from 77 metres, including 1 metre at 14.52 g/t from 79 metres.
Drilling is expected to start in February 2019 at Flushing Meadows which has shallow deposits underexplored this century and is 60-70 kilometres from three mills.
McClure is also wholly-owned and is 10-28 kilometres from Echo’s Bronzewing mill which the junior company hopes to reopen with the weight of Northern Star on its share registry.
The project’s 20-kilometre strike of shear and contact-related mineralised trends is 1 kilometre south of Echo’s 1-2 million ounce Orelia gold deposit.
McClure includes the historic Success, Parmelia and Challenger oxide open pit gold mines where about 110,000 ounces were mined historically.
New drilling at the project is to start in February 2019.
Yandal Resources' top three key projects, the Ironstone Well, Barwidgee and Mt McClure gold projects
Gordons is 16 kilometres north of Northern Star’s giant gold mine Kanowna Belle near Kalgoorlie, which features more than 10 million ounces.
Yandal’s Gordons ground surrounds the Gordon-Sirdar underground gold mine and is along strike from the Mulgarrie gold mine where about 250,000 ounces were mined historically.
March 2019 quarter follow-ups at the project will focus on gold mineralisation found in a felsic porphyry unit.
Hughes told Proactive, “There is potential for consolidation here.
“Among the reasons Northern Star made an investment is that Northern Star owns the Jundee project, which is one of their largest operations in Australia and globally.
“Phenomenal grades are being discovered by them at depth, plus they’ve got a new discovery here, Ramone, not that far from us.”
Ramone has a maiden open-pit reserve of 74,000 ounces at 1.7 g/t.
Hughes said of Northern Star, “You can see why they’ve taken an interest in our belt here.
“They’re interested in the whole Yandal greenstone belt.”
Northern Star’s other investments are complementary to its investment in Yandal.
Hughes noted, “Northern Star also has a 20% holding in Echo Resources.
“They’re very interested in a strategic position on the belt so that’s why they were happy to come in.
“We’re in their area, they’ve got plenty of money — big fish in the pond — and we’re grateful for their support.”
Yandal's ground is near infrastructure and the home of the annual Diggers & Dealers Mining Forum, Kalgoorlie-Boulder
Flinders Park project
Yandal describes a fifth project, the Flinders Park project, as a ‘potential new discovery’.
The company had immediate success with its drilling efforts and returned 15 metres grading 2.03 g/t gold from 77 metres, including 1 metre at 14.52 g/t.
There is potential to more effectively test 1.5 kilometres at the north of the historically-explored project while considering the orientation of drilling.
Western Australian focus
Yandal is based in Nedlands, a few suburbs from West Perth, and shares offices with Reward Minerals Ltd (ASX:RWD) and Intermin Resources Limited (ASX:IRC).
Its four key projects are on proven greenstone belts.
The two greenstone belts its most advanced projects are located on are the highly prospective Yandal and Norseman-Wiluna greenstone belts.
Australian Securities Exchange newcomer Yandal listed on the ASX in December 2018.