Yandal Resources Ltd (ASX:YRL) has held up well in a weak market since listing in December 2018 and is confident of building on early successes with strong value-adding news flow in the remainder of 2019.
Managing director Lorry Hughes told investors at this week’s Proactive CEO Sessions in Sydney and Melbourne that the company’s share price had been consistently above the listing price.
Lorry Hughes addresses investors at the Sydney CEO Session.
The company has a market cap of around $11.7 million, had $4 million in cash at the end of March and its strategic shareholders and Top 20 hold 75%.
Hughes said: “We are set for rapid growth and will have strong results-based news flow.”
Yandal is focused on projects in prolific greenstone belts in the golden elephant country that is WA’s Goldfields.
Northern Star Resources (ASX:NST) is a successful player in this region and has shown its confidence in Yandal’s strategy by establishing a stake of more than 15%.
Other companies mining, discovering and growing resources in the region include Echo Resources Limited (ASX:EAR), Blackham Resources Ltd (ASX:BLK), Bellevue Gold Ltd (ASX:BGL), Great Western Exploration Limited ASX:GTE), Renegade Exploration Ltd (ASX:RNX), Toro Energy Limited (ASX:TOE) and Alchemy Resources Limited (ASX:ALY).
Two Yandal projects, Ironstone Well/Barwidgee and Mt McClure, are within the Yandal Greenstone Belt while the third, Gordons, is near Kalgoorlie and close to other gold operations and infrastructure.
Ironstone Well and Barwidgee occupy 55 kilometres of strike along contiguous mining tenements and contain multiple gold deposits within 70-80 kilometres of gold plants at Jundee, Bronzewing and Wiluna.
The deposits are shallow, are under-explored, have not been mined and were left by majors at much lower gold prices.
Yandal’s flagship prospect is Flushing Meadows at which the company has fielded encouraging high-grade results with a JORC-compliant resource estimate due in mid-2019.
New aircore drilling on 200-metre spaced lines is planned to start this month during an ongoing reverse circulation program, which continues to intersect strong mineralisation.
While the focus is primarily on Flushing Meadows, there are other nearby targets within the project as well as at the company’s other projects that provide further upside potential.