On 9 January 2019, Nelson Resources Limited (ASX: NES) has announced the results from its recent Reverse Circulation drilling program at Yarri Prospects. The exploration study has shown excellent high-grade gold results from several drill targets. The company holds a 100% stake in Yarri Prospects. The company has conducted the initial drilling testing at the three gold prospects which has shown a positive return of high-grade gold intercepts from all the three prospects. The three prospects are Wallaby, Great Banjo, and Gibberts.
The Yarri prospects lie between the prolific Sunrise Dam and Carouse Dam gold operations. At the end of 2018, the initial program has completed 41 RC holes totaling 5303 meters.
Nelson Resources is under the mining sector engaged in the gold exploration. The company holds ownership interest in five wholly-owned gold projects which are in WA (Western Australia). Founded in 2007, the company got listed on ASX in December 2017.
As stated by Nelson’s Managing Director Adam Schofield, the company is pleased to start the New Year with these strong results, confirming and extending the potential for high-grade gold veins well beyond what has previously been exposed by historic workings and drilling at all three prospects. The company is looking forward to re-start drill testing in 2019 and is confident that it can significantly extend these high-grade results.
The company’s Yarri project consists of three prospects on three Prospecting Licenses to the North and East of the historic Yarri State Battery site. Right now, the company’s focus is on the Wallaby line of workings.
Wallaby Prospect: Total production from the Wallaby line of workings recorded as 21,000 ounces from 42,000 tonnes at an average grade of 15.5g/t tonnes. According to old reports, due to floods or the lodes being faulted out at depth, mining operations in Wallaby Prospect were stopped. It is also noteworthy that significant periods of production ceased with the outbreak of the First and Second World Wars.
Currently, Wallaby Prospect had 28 holes drilled totaling 2642 meters. The mineralization at Wallaby is hosted in pyrite-bearing quartz veins in sheared and altered monzogranite. Historic mining mainly focused on the Eastern or hanging wall contact. The bulk of the quartz vein and the Western contact are mostly untouched.
Great Banjo and Gibbert’s Prospect: Great Banjo had a total of 8 holes for 2,243 meters drilled. The initial results of drilling confirm mineralization across all 3 of the Yarri prospects. The company drilled 4 holes for 418 meters for an initial test of the mineralized structure. The drilling tests have confirmed that the previous drilling was incorrectly oriented and that failed to identify this high-grade mineralization.
Stock performance: On January 9, 2019, the shares of Nelson Resources Limited session settled at A$0.135 per share, up by 12.5%. In the time span of the previous six and three months, the stock delivered the returns of -20% and -17.24%, respectively. However, during the last one month, NES offered the return of -7.69% to investors.
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