Albion Resources Acquisition Unlocks High-Impact Gold Targets at Yandal West

Unlocking High-Impact Drill Targets at Yandal West

Strategic Positioning in a World-Class Gold Region

Albion Resources (ASX: ALB) has positioned itself in the highly prospective Yandal Greenstone Belt with its Yandal West Gold Project acquisition. The project spans 61km of prime exploration ground approximately 60km from Northern Star's Jundee and Bronzewing mines and the Wiluna Gold Mine, putting it in proximity to three established processing facilities.

The company has recently completed extensive geophysical and geochemical surveys that have identified multiple high-priority drill targets across three distinct exploration areas within the project: Ives Find, Barwidgee Fault, and May Queen. With drilling set to commence imminently, Albion is fully funded to test these targets in the coming weeks.

Corporate Overview

Albion Resources has a tight capital structure with 132 million shares on issue and a market capitalisation of approximately A$7.5 million (as of 16 June 2025). The company maintains a strong cash position of approximately A$4 million, resulting in an enterprise value of just A$3.5 million. Greater Western Exploration (GTE) holds a 17% stake in the company following the Albion Resources Ltd acquisition in January 2025.

The board and management team hold 11% of shares, demonstrating alignment with shareholders. The company is led by newly appointed CEO Peter Goh, who joined in March 2025 to drive the exploration program at Yandal West.

Yandal West Project: Three Key Exploration Areas

The Yandal West Gold Project features three distinct exploration areas, each with its own geological characteristics and exploration potential:

1. Ives Find

This area features a 4km by 750m granite intrusion trending NNW with evidence of gold mineralisation over a 2km strike from drilling and rock samples. The geological setting is comparable to significant gold deposits such as Hemi (De Grey Mining), Gruyere (Gold Road/Gold Fields), and Wallaby (Gold Fields).

Recent geophysical surveys have identified seven coincident chargeability and resistivity anomalies, plus one chargeability anomaly to the west outside of the granite. The most compelling targets include:

• Bell Miner/Collavilla: Historical workings that produced 740oz of gold at an impressive average recovered grade of 11.4g/t. Recent rock chip assays returned spectacular values of 114.4g/t Au, 45.8g/t Ag, 0.33% Cu, 0.25% Pb, and 0.53% Zn.

• Collavilla East: A close-to-surface anomaly that increases in thickness to at least 300m depth. A mapped historical 70m gold-bearing quartz reef sits directly above this anomaly, with assays up to 6 g/t Au.

• Collavilla West: A chargeability target off the granite rock.

Historical drilling at Bell Miner returned impressive intersections, including:

• 7m at 7.4 g/t Au from 32m (including 1m at 23.0 g/t)
• 3m at 11.2 g/t Au from 42m (including 2m at 16.0 g/t)
• 4m at 8.52 g/t Au from 38m (including 2m at 15.6 g/t Au)
• 6m at 4.72 g/t Au from 54m (including 2m at 13.02 g/t Au)
• 3m at 52.38 g/t Au from 34m

Notably, these intersections are all shallow, occurring within 54m from surface.

2. Barwidgee Fault

This area features a potentially mineralised structure/fault extending 2.6km that remains underexplored. Historical drilling intersections include 4m at 9.0g/t Au from 39m (including 1m at 34.5 g/t Au) and 7m at 1.0g/t Au from 23m, with mineralisation remaining open at depth.

Three new drill target areas have been defined:

• Barwidgee Central: Features a 1km by 300m gold-in-soil anomaly centred around the discovery hole (4m at 9 g/t Au). This anomaly coincides with a large 600m by 150m chargeability anomaly that may indicate disseminated sulphide mineralisation. Historical rock chip assays ranged from 0.1 g/t Au to 23.5 g/t Au extending for 150m.

• Harris North: A 400m by 100m gold-in-soil anomaly coincident with a 200m by 100m chargeability anomaly. This area has never been drilled and is covered by alluvial soil.

• Barwidgee South: Features a large 1km by 200m gold-in-soil anomaly coincident with a 500m by 100m chargeability anomaly that remains open to the south. Recent dipole-dipole induced polarisation (DDIP) surveys indicate chargeability extending to at least 200m depth.

3. May Queen

This area presents a geological setting of a greenstone belt that has been intruded by several granite intrusions, interpreted to be the southern extension of the mineralised Barwidgee Structures. Historical drilling intersections include 4m at 25.7g/t Au from 60m, 16m at 1.64g/t Au from 13m, and 17m at 0.8 g/t Au.

Understanding Induced Polarisation Surveys in Gold Exploration

Albion Resources has utilised advanced geophysical techniques to identify its drill targets, particularly induced polarisation (IP) surveys. These surveys are valuable exploration tools in gold exploration for several reasons:

What is Induced Polarisation?
Induced polarisation is a geophysical imaging technique used to identify subsurface materials by measuring their electrical chargeability and resistivity properties. The method works by inducing an electrical current into the ground and measuring how the ground charges and discharges in response.

Why is IP Effective for Gold Exploration?
Gold deposits are often associated with sulphide minerals such as pyrite, arsenopyrite, and chalcopyrite. These sulphide minerals are typically more electrically chargeable than surrounding rocks. When an electrical current is applied, these minerals temporarily store the charge and then release it, creating a measurable "IP effect" that can indicate potential mineralisation.

Types of IP Surveys Used at Yandal West:

1. Gradient Array IP (GAIP): Provides a broad horizontal map of chargeability and resistivity variations across a large area. This helps identify anomalous zones that may warrant further investigation.

2. Dipole-Dipole IP (DDIP): Offers detailed vertical cross-sections of the subsurface, providing information about the depth and geometry of chargeability anomalies. This helps determine the optimal drill hole locations and depths.

The coincidence of chargeability anomalies with gold-in-soil anomalies and historical high-grade gold intersections at Yandal West significantly increases the probability that these anomalies represent gold-bearing sulphide mineralisation.

Imminent Drilling Program

Albion Resources has secured a drilling contractor and is set to commence an exploration drilling program within the next two weeks. The program includes:

1. RC Drilling (3,000-4,000m): Commencing within two weeks to test high-priority targets.
2. Heritage Survey: Clearance targeted for early July 2025 at Barwidgee.
3. Aircore Drilling (3,000-4,000m): Starting mid-July 2025 to test shallow targets under cover.
4. Results Evaluation: August-September 2025, to be followed by planning for the next program.

Investment Case

Albion Resources presents a compelling investment opportunity based on several key factors:

1. World-Class Location: The Yandal Greenstone Belt hosts multi-million-ounce gold deposits, including the Jundee and Bronzewing mines.

2. Proximity to Processing Infrastructure: Located within approximately 60km of three gold processing plants, potentially reducing capital requirements for any future development.

3. Historical High-Grade Gold: Previous exploration has confirmed the presence of high-grade gold mineralisation across multiple prospects.

4. Strong Gold Market: The project timing aligns with robust gold prices, enhancing the economic potential of any discoveries.

5. Fully Funded: With approximately A$4 million in cash, the company is well-funded to complete its planned exploration programs.

6. Tight Capital Structure: The company has a relatively low enterprise value of approximately A$3.5 million, providing significant leverage to exploration success.

7. Imminent Catalysts: With drilling set to commence within two weeks, investors can expect a steady flow of news in the coming months.

"Our systematic approach to exploration at Yandal West has generated multiple high-quality drill targets that we're excited to test in the coming weeks. The coincidence of geophysical anomalies with historical high-grade gold results and extensive gold-in-soil anomalies significantly enhances the prospectivity of these targets," said Peter Goh, Chief Executive Officer.

Regional Context and Transactions

The Yandal region has seen significant corporate activity in recent years, highlighting the value of gold assets in the area:

• Strickland Metals sold the approximately 350,000-ounce Millrose gold deposit to Northern Star for A$61 million in June 2023.

• Echo Resources, which reported a resource of approximately 335,000 ounces at the Julius gold deposit in 2017, was acquired by Northern Star in 2019.

These transactions demonstrate the potential value that could be unlocked through successful exploration at Yandal West.

Summary

Albion Resources has established a strategic position in the highly prospective Yandal Greenstone Belt with multiple high-priority drill targets identified through systematic exploration. With drilling set to commence within two weeks, the company is well-positioned to potentially make significant gold discoveries that could transform its market valuation.

The combination of a world-class location, historical high-grade gold results, advanced geophysical targeting, proximity to processing infrastructure, and a fully funded exploration program makes Albion Resources an attractive option for investors seeking exposure to gold exploration with near-term catalysts.

Ready to Invest in a Potential Major Gold Discovery?

Don't miss the opportunity to be part of Albion Resources' exciting journey at the Yandal West Gold Project. With drilling set to commence in the coming weeks across multiple high-priority targets in this world-class gold region, now is the ideal time to investigate this compelling investment opportunity. Visit Albion Resources' website today to learn more about their strategic position, fully-funded exploration program, and significant potential for shareholder value creation.