EXPLORATION & DEVELOPMENT

Yamarna exploration push bearing fruit

GOLD Road Resources is seeing strong results from its A$30 million exploration push across its Yamarna ground.

Kristie Batten
Yamarna exploration push bearing fruit

The company said it was particularly encouraged by the early stage bedrock results from the high priority Ibanez and Yaffler South targets.

Ibanez, at Gold Road’s 100%-owned North Yamarna tenements, returned 10m at 28.67 grams per tonne gold from 240m, including 2m at 136.57gpt gold, while the nearby Renegade target returned 2.3m at 4.24gpt gold from 67.7m, including 0.4m at 17.28gpt gold.

Anomaly definition results at Mesaboogie and Gilmour Morello warrant follow-up work.

At Yaffler South, part of the 50:50 joint venture with Sumitomo, the best intersection was 10m at 1.06gpt gold from 92m, including 6m at 1.53gpt gold.

Drilling at the Gruyere JV with Gold Fields returned 49.7m at 1.06gpt gold from 87.5m, including 13m at 2.12gpt.

Gold Road executive director, exploration and growth Justin Osborne said the company was pleased to have received a solid set of results across multiple targets.

“It is very pleasing that the hard work and expertise the geology team has put into developing and executing the ranked exploration strategy is bearing fruit,” he said.

“Of particular promise are the high-grade results from the high-ranking Ibanez target where follow-up diamond drilling is in progress to establish the geological controls upon which to base further drilling.”

The company is focusing on exploration while joint venture partner Gold Fields manages the construction of the $532 million Gruyere project.

RBC Capital Markets analyst Paul Hissey said the results were further evidence that Yamarna could be a new gold jurisdiction.

“While the company awaits first gold from Gruyere in 1Q 2019, the ongoing news flow from such results, along with ongoing de-risking of the Gruyere project as construction milestones are met, should provide share price support for Gold Road,” he said.

“With Gold Fields now owning the maximum 10% under the standstill arrangement, we see further upside to the stock’s current share price with either Gold Fields or another party potentially looking to secure an investment in a long-life, large-scale greenfields gold project in Western Australia.” 

Gold Road shares dropped half a cent yesterday to 68.5c, only slightly below the stock’s five-year high of 75c.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.