Draig Resources has expanded its footprint in the Mid-West region after exercising its option to acquire the highly prospective Yandal South gold project with investors welcoming the news.
The ASX-listed gold explorer executed the option agreement with Croft Mining and Weebo Exploration to acquire six exploration licences and a further exploration licence that is currently an application. Draig is paying $100,000 and 3 million fully paid ordinary shares for the tenements.
The acquisition increases the land position to over 14000 square kilometres in close proximity to its flagship Bellevue project, which lies 40 kilometres to the east.
Yandal South covers 557 square kilometres and lies between Echo Resources’ Bronzewing project – historically produced around 4 million oz of gold – and gold processing plant as well as Red 5’s Darlot gold project – historically produced around 2 million oz – and processing plant.
The project is variably covered by a shallow transported cover sequence and paleochannels with a number of high priority structural, geochemical and geophysical targets identified ready for targeting.
A database containing previous drilling and geophysical and geochemical datasets has been acquired with the project.
A number of advanced prospects are present within the project including the Griffin Well prospect where coarse spaced historic drill results have included 9m at 8.50g/t gold from 37.5m, 27m @ 1.32 g/t gold from 42m, 6m @ 3.14 g/t gold from 120m and 19m @ 1.40 g/t gold from 23m.
“Draig has completed the review of historical data at the Yandal Project and a number of targets for follow up exploration in a highly prospective greenstone belt have been identified,” Draig executive director Steve Parsons said.
“The team intends to return to a first principles approach on the Project with an extensive regolith and geological review of the project to assist targeting.
“This has recently been successfully applied at the Bellevue Gold project leading to the recent exciting drill results from the high-grade Tribune Lode discovery.”
Shares in Draig have gained 4 per cent to 27c in late Wednesday trading.