Nelson Resources (ASX:NES) granted mining leases at Yarri Gold Project

Nelson Resources has announced that Mining Leases M31/503 and M31/504 at the Yarri Gold Project have been granted.

The Yarri Gold Project is located 140km northeast of Kalgoorlie in Western Australia and is subject to a Right to Mine Agreement with Goldfields mining services provider MEGA Resources.

Highlights

• Mining Leases M31/503 and M31/504 have been formally granted at the Yarri Gold Project.
• Tenure and Native Title milestones achieved, significantly derisking the Project and advancing it towards development readiness.
• M31/503 provides immediate scope to expand exploration and development activities into the northern mineralised corridor where high grade historical drill intercepts remain untested.
• Right to Mine agreement with MEGA Resources provides up to $10M in initial development and working capital, with MEGA managing all project permitting and approvals.

Nelson recently executed a Native Title and Mining Agreement with Wangkatja Tjungula Aboriginal Corporation RNTBC, the registered Native Title body corporate for the Nyalpa Pirniku People.

Subsequently, the Deed for Grant of Mining Tenement was executed with the State of Western Australia and the Minister for Mines and Petroleum, resulting in the granting of Mining Leases M31/503 and M31/504.

The granting of M31/504 encompasses the area covered by the already approved Program of Works, enabling an initial ~3,000m RC drilling program as the first stage of a broader ~11,544m program to be fully funded and managed by MEGA.

The granting of M31/503 provides Nelson with immediate flexibility to expand project development activities into the northern mineralised corridor.

The announcement states that this area contains significant historic drill intercepts, including 6m @ 13.2g/t Au from 15m in hole YGRC03, including 1m @ 69.9g/t Au, 3m @ 4.8g/t Au from 33m in hole YBRC04, including 1m @ 10.2g/t Au, and 5m @ 1.13g/t Au from 25m in hole A-1.

The announcement also states that these results remain untested by modern follow up drilling.

Nelson Chairman Gernot Abl said,

“The granting of the Yarri Mining Leases is a significant milestone for Nelson, securing the tenure required to advance the Project along its development pathway. Importantly, the granting of M31/503 also provides flexibility to expand into additional high-grade mineralised areas, reinforcing the optionality to advance the broader Yarri Project district”.

The announcement states that the Yarri Gold Project is subject to a Right to Mine Agreement with MEGA Resources, with the terms of the agreement providing for MEGA to sole fund up to $10M in initial development and working capital to a decision to mine, and to undertake mining and haulage to a third party processing plant.

A Department of Mines, Petroleum and Exploration approved RC drill program of ~11,544m is planned by MEGA, including an initial ~3,000m campaign.