viewNelson Resources Ltd

Nelson Resources consolidates prospective Eastern Goldfields tenure in FY19 with target generation work ongoing

The company aims to enhance the prospectivity of its portfolio through desktop reviews and surveys delineating geochemical anomalies, which will be used to generate planned drill targets.

Nelson Resources Ltd - Nelson Resources consolidates prospective Eastern Goldfields tenure in FY19 with target generation work ongoing
Nelson has more than 650 square kilometres of tenure in WA's Eastern Goldfields

Nelson Resources Ltd (ASX:NES) further developed its Western Australian gold exploration assets in financial year 2019, reconsolidating the tenure over its historical Woodline project and conducting several drilling programs including at the Wallaby line of workings within its Yarri project.

The company believes that Woodline has the potential to be a Tropicana-style gold deposit and its Yarri project has shown significant prospectivity, with several high-grade intersections delivered in 2019 drilling programs.     

Expert exploration geologist appointed

The company also appointed senior geologist Simon Coxhell to oversee and conduct all geological and technical work across the Nelson portfolio.

Coxhell has more than 34 years’ experience encompassing all aspects of the resources sector including exploration, resource development, metallurgical considerations and mining.

Most recently Simon led Echo Resources Ltd (ASX:EAR) through the exploration, resource definition pre-feasibility and bankable feasibility studies of the Julius and Bronzewing gold projects.

He took the gold resource bae of Echo from zero resource ounces to a total of 1.7 million ounces of gold over a three-year period, with a maiden reserve of 800,000 ounces.

Woodline has potential to deliver Tropicana-scale deposit

Nelson non-executive chairman Warren Hallam said the company had delivered on its exploration commitments on its portfolio of gold assets since listing.

He said: “The company has reconsolidated 656 square kilometres of tenure of the exciting Woodline Project previously explored by SIPA Resources, Newmont and MRG Resources.

“Total exploration expenditure to date by previous explorers, including Nelson Resources, is approximately $13 million which has defined a large geochemical footprint over 20 kilometres of strike.”

Hallam added that the company was actively looking to increase its already significant foothold in the Albany-Fraser province, with the view that the Woodline Project has the potential to deliver a Tropicana-scale deposit.

High-calibre results suggestive of large gold system

Woodline consists of the Socrates, Grindall, Redmill and Harvey prospects and is on the southern end of the interpreted Tropicana belt, 20 kilometres northwest of the Albany-Fraser province.

During the year Nelson applied for four new tenements which are within the vicinity of Socrates, Grindall and Redmill.

Just 90 kilometres northeast of Kalgoorlie, the newly reconsolidated tenure lies over the reworked Archaean margin adjacent to the Albany-Fraser province.

Work carried out by Nelson on the Socrates prospect returned high-calibre gold intersections which are suggestive of a large gold system, while the company believes Grindall, Redmill and Harvey each to have potential to host a Tropicana-scale gold deposit.

Target generation ongoing

An additional data package relating to Woodline was acquired from MRG Metals Limited (ASX:MRQ) which includes the results of 789 metres of diamond drilling across 5 holes and 1,556 metres of reverse circulation drilling over 7 holes.

The company intends to combine the newly acquired data with its current comprehensive data set to better understand the structural setting and lithologies of the eastern Yilgarn margin.

Desktop reviews of data from all Woodline prospects has begun or is ongoing to generate targets for planned drilling.

Historical results supplement new work

Target generation was also undertaken at the Wilga Well Project, which is 9 kilometres east of AngloGold Ashanti’s Sunrise Dam project.

The proximity to Sunrise Dam and some significant historical drilling results have encouraged Nelson to conduct both new geophysics work and drilling.

Wilga Well contains at least three geochemically anomalous areas one corresponding to historical workings, while the other two have received little consideration.

Old workings point to potential mineralisation at depth

Drilling beneath the old workings at Wilga Well is shallow and the potential at depth remains largely untested.

Best historical intercepts include: 9 metres at 18.26 g/t gold from 13 metres; and 1 metre at 17.6 g/t from 28 metres, including 1 metre at 10.7 g/t from 16 metres.

Historical production between 1899-1901 amounted to 296,000 tonnes at 43.14 g/t and between 1984-1994 Wilga Well produced 651,000 tonnes at 11.31 g/t.

Nelson carried out a sample auger program to test the mineralised shear zone over the tenement with the aim of generating future aircore and RC drill targets.

Low-level gold analysis results of these samples encourage a potential follow-up AC drilling program to verify historical data and possibly extend the known high-grade zone.

Yarri delivers significant intercepts

Hallam continued: “The Yarri project … has delivered some significant intercepts however further work is required to determine if the scale is suitable for the company’s forward-looking plan.

“An auger drilling program has also been undertaken at the company’s Wilga Well project 9 kilometres east of Sunrise Dam, where drilling below old workings remains shallow and the potential at depth remains largely untested.”

The Yarri project, 30 kilometres north of Saracen’s Carosue Dam mine and 7.5 kilometres east of the Porphyry Mine, consists of three prospects of which Wallaby is Nelson’s main focus.

The line of workings at Wallaby are immediately east of Yaarri, where recent drilling by Nelson has returned high-grade drill results.

These include:

  • 3 metres at 12.76 g/t gold from 61 metres;

  • 5 metres at 2.3 g/t from 82 metres;

  • 4 metres at 2.24 g/t from 41 metres; and

  • 3 metres at 2.44 g/t from 37 metres.

Quick facts: Nelson Resources Ltd

Price: 0.073 AUD

Market: ASX
Market Cap: $8.38 m

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