23-June-2020: Exploration Update - Flushing Meadows Gold Prospect
Yandal Resources’ Managing Director, Mr Lorry Hughes commented: “These new results are consistent with previous drilling within the September 2019 Mineral Resource envelopes and largely confirm our earlier interpretation of multiple north east dipping mineralisation zones of variable thickness.
There is one more batch of RC results due in from recent drilling, add geotechnical, bulk density and metallurgical data from the upcoming diamond drilling program and we will have a solid foundation to complete a robust feasibility study”.
--- that's just a soundbite - click on the link above for the full report/announcement ---
Disclosure: I hold YRL shares.
10-June-2020: Shallow Hits Continue - Flushing Meadows Gold Prospect
Their website: https://www.yandalresources.com.au/
Yandal have a 3-person board, and 2 of those board members are women, with the single male board member being Lorry Hughes, their Managing Director. Lorry is an Economic Geologist with over 24 years’ experience and was recently Executive Director of Intermin Resources Ltd and Managing Director and CEO of South Boulder Mines Ltd (now ASX: DNK and ASX: DKM) from 2008 – 2013. He has held executive and senior management positions on mining and development projects for companies including Energy Metals Ltd, CSA Global, Rio Tinto and Barrick. He has comprehensive mining, exploration and development experience from numerous gold mining projects in Western Australia. Lorry holds 2,988,654 YRL shares and 2,040,909 options.
Yandal's second director, and their Board Chair, is Ms. Katina Law, who has over 27 years’ experience in the mining industry covering corporate and site based roles across several continents. She is currently the Executive Chair of Ardea Resources Ltd (ASX:ARL). She has worked with a number of ASX listed resources companies in strategic financial advisory and general management roles. Katrina has worked on several development and evaluation projects which were later subject to corporate transactions including the Deflector gold and copper project (now owned by SLR, formerly owned by Doray Minerals who were acquired by SLR) and the King Vol polymetallic zinc project. Ms Law was Executive Director and CEO of East Africa Resources Limited from 2012 to 2015, and also held senior positions at Newmont Mining Corporation’s Batu Hijau copper gold project in Indonesia and their head office in Denver, USA and at LionOre International based in Perth. Ms Law has a Bachelor of Commerce degree from UWA, is a Certified Practising Accountant and has an MBA from London Business School. She is currently a non-executive Director of headspace National Youth Mental Health Foundation. Katina holds 565,000 YRL shares and 1,032,500 options.
Yandal's third director, Mrs Kelly Ross, is a Chartered Secretary with over 25 years’ experience in the mining industry. Mrs Ross was a senior accountant at Resolute Ltd (RSG) from 1987 to 2000 during which time Resolute became a gold producer in Ghana, Tanzania and at several mines in Western Australia. Mrs Ross was the Company Secretary of Independence Group NL (IGO) for 10 years from 2001 to 2011 and Director for 12 years from 2002-2014. Mrs Ross is currently a NED of Musgrave Minerals Ltd (MGV). Kelly holds 156,251 YRL shares and 515,626 options.
Yandal's Company Secretary is Mrs Bianca Taveira, an experienced company administrator and manager who has acted as Company Secretary to a number of unlisted public and ASX listed natural resource companies for over 19 years. During this time Mrs Taveira has been involved in a number of initial public offerings, reverse takeover transactions, corporate transactions and capital raisings. Mrs Taveira has a corporate and compliance background and is experienced with administration of the shareholder registry, the ASX Listing Rules, mining tenement management and the Department of Mines regulations. Mrs Taveira is currently also the Company Secretary of Reward Minerals Ltd (RWD) and Horizon Minerals Limited (HRZ).
On this map, you can see YRL's main projects - Ironstone Well - which includes Flushing Meadows - and the Barwidgee Gold Project - and their close proximity to NST's Jundee and Bronzewing gold processing centres. Bronzewing came with the acquisition of Echo Resources that Northern Star completed late last year.
This map shows YRL's prospective Mt McClure gold project which lies SSW of NST's Bronzewing and south of a number of NST's prospective tenements.
YRL also own the Gordons Gold Project which comprises 36 mining, exploration and prospecting licenses, is located 16m north of NST's giant Kanowna Belle gold mine, and largely surrounds the Gordan-Sirdar underground gold mine which is owned and operated by FMR Investments.
Northern Star Resources (NST) own 14.96% of YRL, so that's good - in that NST may move to acquire the rest of YRL at some point - and bad - in that NST have a blocking stake (any holding greater than 10% is regarded as a blocking stake because it blocks any other company or person from reaching the > 90% required to move to compulsory acquisition of the remaining shares, so a blocking stake effectively blocks others from taking over the company), so it is unlikely that we'll see much interest in YRL from any other company as long as NST holds more than 10%. My personal opinion however is that the NST position in Yandal is a net positive, as they are the most logical company to acquire YRL anyway.
Other substantial shareholders in YRL include:
My GoldNerds spreadsheet has the following "overview" in it about YRL:
Yandal Resources (YRL)
Exploring for gold in the Yandal Greenstone Belt north of Kalgoorlie in WA. IPO'ed in December 2018, @ $0.20 per share raising $5m.
20 Jun 2019: Announces a non-renouncable rights issue of 1 new share for every 4 held (approx. 13.37m shares) @ $0.22 per share to raise $2.9m. Includes 1 free attacjing option for every 2 new shares exercisable @ $0.027 per option and expiring on 30 Jun 2021.
23 Jul 2019: The non-renouncable rights issue announced on 20 Jun 2019 closes over subscribed.
29 Jul 2019: Results of the rights issue: 10.97m shares @ $0.22 per share raising $2.4m. A further 5.485 options exercisable @ $0.27 per option expiring 30 Jun 2021. Additional 2.4m shortfall shares are being finalised.
16 Aug 2019: All shortfall shares now placed.
Ironstone Well & Barwidgee
Yandal Greenstone Belt, 500 km North of Kalgoorlie, WA. 472 sq km. Numerous targets on major structures along strike from known gold deposits. Exploration works were well underway prior to listing. Flushing Meadow prospect: Yandal must pay royalties of $40 per ounce on the first 50 koz produced plus $20 per ounce on the next 100 koz produced, total royalties capped at $4m.
-- 13 Jun 2019: Flushing Meadow: Continuous mineralisation along a 1.7 km strike length. 64m @ 0.51 g/t from 40m, 32m @ 0.98 g/t from 52m, 40m @ 1.03 g/t from 80m and 4m @ 9.09 g/t from 24m. Infill RC drilling commenced. Expects a resource estimate in Q3 2019.
-- 4 July 2019: Further results from the Infill RC drilling include 18m @ 2.26 g/t from 91m. Results from the other 2430m of RC drilling expected soon. Recon RC drilling at the Flinders Park prospect returned 26m @ 1.69 g/t from 38m.
-- 10 Jul 2019: Further recon drilling at Flushing Meadow extend strike length 200m further North for a total strike length of 1.9 km.
-- 16 Jul 2019: 4m composite samples from the recent RC drilling return strong results including 4m @ 3.17 g/t and 4m @ 2.80 g/t from 36m, 4m @ 7.28 g/t from 8m, 4m @ 2.23 g/t and 4m @ 2.40 g/t from 24m. Individual 1m samples will be submitted this week with the final results used to compile a JORC compliant maiden resource estimate in August.
-- 14 Aug 2019: Final infill drilling results at Flushing meadow include 4m @ 3.91g/t Au from 45m, 3m @ 2.53g/t Au from 7m and 3m @ 3.04g/t Au from 47m. Follow up drilling planned for September.
-- 24 Sep 2019: Resource estimate for Flushing Meadow: 191k ozs @ 1.29 g/t off 0.5 g/t cut off, 22.8% indicated and 77.2% inferred or 147k ozs @ 1.63 g/t off 1.0 g/t cut off, 24.8% indicated 75.2% inferred.
-- 9 Oct 2019: Commences an 82 hole 9000m RC drill program up to 200m depth. Will be followed up with a further 83 AC holes for 9000m and 13 RC holes for 1,500m to test areas to the North and South of Flushing Meadows along the Barwidgee Shear Zone.
-- 27 Nov 2019: Results from 4m composite intervals include 72m @ 1.18 g/t Au from 16m, 12m @ 3.07g/t from 4m, 36m @ 1.12g/t from 76m and 8m @ 4.17g/t from 36m. Waiting on the 1m interval assay results. 5000m of the 20,000m drill program completed.
-- 11 Dec 2019: The 1m interval assay results are in. 12m @ 5.58 g/t Au from 53m, 2m @ 9.77 g/t Au from 37m and 7m @ 4.73 g/t Au from 102m. A 20,000m resource expansion and discovery drill program will commence in the March quarter.
-- 15 Jan 2020: Auger soil samples return high tenor gold anomalies across a 4km strike zone at Barty Prospect which adjoins tenements owned by Northern Star Resources. Planning first pass AC drilling this quarter.
-- 18 Feb 2020: Flushing Meadows: 12m @ 3.44 g/t from 47m including 1m @ 17.47 g/t from 54m.
-- 17 Mar 2020: Flushing Meadows: 5m @ 5.84 g/t from 33m including 1m @ 21.06 g/t from 33m, 9m @ 5.14 g/t from 41m including 3m @ 11.55 g/t from 42m. A 10,000m drill program will commence soon as part of open pit mining feasibility study.
Yandal Greenstone Belt, 500 km North of Kalgoorlie, WA. 70 km South of the Ironstone Well and Barwidgee tenements. 1 km south from Echo Resources’ (ASX: EAR) 1-2 Moz Orelia gold deposit. 60 sq km.
-- Before Dec 2018: 5m @ 16.08g/t Au from 104m, 1m @ 103.00g/t Au from 83m.
50 km North of Kalgoorlie and 16 km north of NST’s giant Kanowna Belle gold mine of over 12 Moz. 15 sq km. Exploration works were well underway prior to listing. Includes Gordons Dam, Pioneer of Kings, Lady Clara, Dickens Custer, Mulgarrie North and Mt Jewell.
7 Mar 2019: Acquires 2 tenements totalling 320 hectares adjoining existing tenements for 120k Yandall shares.
-- 8 Jan 2019: 888m of RC drilling: 8m @ 7.33 g/t Au from 35m including 1m @ 47.96 g/t Au from 36m; 3m @ 18.30g/t Au from 34m
-- 6 May 2019: Gordons Dam: 7m @ 0.56 g/t Au from 49m, 1m @ 0.46 g/t Au from 45m and 5m @ 2.44 g/t Au from 40m. Mulgarrie North: 2m @ 2.15 g/t Au from 26m, 1m @ 2.32 g/t from 33m. Further IP surveys and RC drilling are being planned for the 3rd Q after these significant intercepts.
-- 15 Aug 2019: SAM survey identifies 8 new high priority exploration targets adjacent to Gordons Well. RC Drilling planned for Sep 2019.
-- 17 Sep 2019: A 27 hole 1800m combined AC and RC drill program has commenced to test for extensions. Results in the December quarter.
-- 4 Nov 2019: Encouraging results from recent drilling including 7.0m @ 3.06 g/t Au from 61m, 11m @ 1.40 g/t from 49m, 2m @ 2.48 g/t from 98m and 7m @ 0.97 g/t Au from 121m. Strike length is up to 400m.
-- 27 Feb 2020: Will commence a 5000m combined RC and Air-Core drilling campaign at ten prospects.
-- 27 May 2020:5000m drilling confirms highgrade mineralisations open in all directions. 1m @ 17.01 g/t Au within 11m @ 1.89g/t Au from 97m, 4m@ 9.48 g/t Au from 100m. Expansion RC and AC drilling will commence in June 2020.
GoldNerds also lists YRL as having around $4.4m of net cash (no net debt) and having around 24% of their current $12.2m market cap in net financial assets. By my calculations, it's more like 36% of their market cap that they have in cash, but remember they are explorers and developers, so they burn through cash, but don't yet have any revenue (unless they sell assets). So you have to expect them to keep raising more money (placements, entitlement offers, SPPs, etc) until they either start making money or get taken over (most likely by NST).
I don't hold any YRL shares, but I do hold NST shares. YRL look like a decent "Spec Buy" in that they are reporting good drilling results (high grades of gold), their tenements are well positioned, they have some smart money on their share register, they have a likely suitor to take them over in NST who already own almost 15% of YRL and have gold processing plants near most of YRL's tenements and projects, they appear to be well run by experienced people with skin in the game, and they have no debt. Added to my watchlist.