Yandal Resources Confirms High-Grade Arrakis Gold Discovery at Depth

Arrakis Drills Into Depth as Yandal Confirms High-Grade Gold Continuity Below 350 Metres

Yandal Resources (ASX: YRL) has reported diamond drilling results that extend confidence in the Bad Example (Before Formatting): Arrakis gold discovery at its 100%-owned Ironstone Well-Barwidgee (IWB) Gold Project in Western Australia's northern Yandal Greenstone Belt. According to the ASX announcement, assays from four diamond holes confirm that gold mineralisation continues at depth beyond 250 metres from surface, with one key hole showing mineralisation persists below a previously interpreted cross-cutting shear zone.

For investors following emerging ASX gold discoveries, that matters because the latest drilling supports both depth continuity and a more refined structural model ahead of a planned Exploration Target for Arrakis in late July 2026. The company also stated that results from extensional RC drilling to the south-east and close-spaced RC drilling are still pending.

Diamond Drilling Results Support Continuity at the Arrakis Gold Discovery

In the ASX announcement, Yandal said the four-hole diamond drilling programme was completed in May using RC pre-collars followed by HQ diamond core into fresh rock. The aim was to test the continuity and geometry of higher-grade gold mineralisation at depth within the Arrakis structure, which the company said is currently defined over 1.3 kilometres of strike.

The reported headline results are set out below.

The strongest individual high-grade internal zone came from 25IWBRC0050D, which returned 4.1 metres at 5.7 g/t gold within a broader interval of 18.0 metres at 1.8 g/t gold. According to the company, this result supports a higher-grade mineralised domain to the south of the prospect.

Yandal also reported 5.0 metres at 0.6 g/t gold from 313m in hole 25IWBRC0050D, although this was not one of the main headline intervals. All intercepts were reported as downhole lengths, with the company estimating true widths at around 60% to 70% of those figures.

The Key Geological Result: Mineralisation Below the Interpreted Shear Zone

The most important outcome from the update appears to be the result from 26IWBRC0066D. In the report, Yandal said this hole confirmed significant mineralisation below an interpreted shallow-dipping shear zone that had previously been linked to reduced grades and was first identified in hole 25IWBDD0012.

That distinction is important. A structural feature such as a shear zone can sometimes displace mineralisation rather than end it. If that is the case at Arrakis, the target area at depth may be broader than earlier drilling alone suggested.

Hole 26IWBRC0066D returned:

• 11.5m @ 1.6 g/t Au from 347.6m, including 5.0m @ 3.1 g/t Au
• 21.7m @ 0.8 g/t Au from 366m, including 4.0m @ 2.1 g/t Au

Yandal said these results demonstrate the "re-occurrence of significant gold mineralisation at depth" on the 6,550mN section, below the interpreted cross-cutting structure. The company's interpretation is that the same shear may also explain the weaker mineralisation seen in hole 26IWBRC0070D, with stronger mineralisation potentially continuing below that structure as well.

What Did the Managing Director Say?

"Our diamond drilling programme has very successfully demonstrated that the Arrakis mineralised system remains open at depth, with several intercepts demonstrating a now familiar style of high-grade mineralisation more than 250m from surface," said Chris Oorschot, Managing Director/CEO of Yandal Resources.

"Of particular significance is the intercept from 26IWBRC0066D where both high-grade and broader low-grade mineralisation was intercepted below an interpreted shallow-dipping shear zone associated with lower-grade mineralisation."

For investors, this is the type of technical update that can improve confidence in a discovery before any formal tonnage-and-grade range is published.

What the Drilling Says About the Shape of the Arrakis System

The report outlined several emerging features of the Arrakis geological model.

First, the company said holes 25IWBRC0050D and 26IWBRC0066D validate a steeply plunging higher-grade domain to the south, between roughly 6,050mN and 6,200mN, with an estimated strike length of 100 to 150 metres. Yandal said this domain remains open at depth.

Second, the company's interpretation suggests the Scytale shear zone may be offsetting the mineralised system rather than terminating it. If later drilling supports that interpretation, Arrakis may host multiple positions where mineralisation can be tracked across structural breaks.

Furthermore, drilling continues to indicate scale at surface and at depth. While the current primary Arrakis structure is described as extending over 1.3 kilometres at surface, only a portion of that trend has been tested with deeper drilling.

This matters because early-stage gold discoveries are often re-rated not only on grade, but also on continuity, thickness, and predictable geometry. A mineralised system that can be modelled with increasing confidence is generally easier to target with follow-up drilling.

Understanding True Width and Why It Matters in Gold Drilling

When investors read drill results, the interval shown in an ASX table is usually the downhole width. That is the length of mineralised rock cut by the drill hole. However, drill holes rarely cut straight across a mineralised body at a perfect right angle.

That is why companies also provide an Estimated True Width (ETW) where possible. True width is an estimate of the actual thickness of the mineralised zone after adjusting for the drill angle and the orientation of the rock structure.

At Arrakis, Yandal said true widths are approximately 60% to 70% of downhole widths. In practice, that means:

• An 18m downhole intercept may equate to roughly 10.8m to 12.6m true width
• An 11.5m downhole intercept may equate to roughly 6.9m to 8.1m true width
• A 21.7m downhole intercept may equate to roughly 13.0m to 15.2m true width

For non-specialist investors, ETW is useful because it gives a better indication of the actual thickness of the mineralised zone. Thicker true widths can support more meaningful mineralised volumes, although economic significance still depends on grade, continuity, mining conditions and future resource work.

Key Technical Terms Explained

A few other technical terms in the report are worth clarifying:

• HQ core: A standard-sized diamond drill core used for detailed geological logging and sampling
• g/t Au: Grams of gold per tonne of rock
• Shear zone: A zone where rocks have moved and deformed, sometimes displacing mineralisation
• Orogenic gold: A common style of structurally controlled gold mineralisation found in greenstone belts such as Yandal

Ground Gravity Data Adds Another Layer to Targeting

Alongside the drilling results, Yandal said recently acquired ground gravity data across the IWB Gold Project has now been processed. According to the company, the updated dataset expands and infills surveys completed in 2024 and 2025.

The report said this data will be used to:

• Refine stratigraphic and structural interpretations around Arrakis and Flushing Meadows
• Generate new early-stage exploration targets across the IWB project area

Gravity surveys measure subtle changes in rock density below surface. In accessible terms, this can help geologists identify buried rock units and structures that may be associated with gold mineralisation. It does not directly detect gold, but it can improve targeting by showing where favourable host rocks or structural corridors may sit beneath cover.

That is relevant at IWB because the company is working across multiple target areas rather than focusing solely on one discovery.

Near-Term Catalysts Across Arrakis, Flushing Meadows and New England Granite

In the ASX update, Yandal said it maintains a strong cash position and is continuing an active exploration schedule into the second half of calendar 2026. The main near-term catalysts flagged in the report are summarised below.

This spread of activity gives Yandal multiple data points over coming weeks. From an investor perspective, the late July Arrakis Exploration Target is likely to be the most closely watched, because it should provide the first formal numerical framework for the discovery's potential scale.

Existing Resource Base Provides Context for the Arrakis Discovery

Yandal is not an explorer with only one prospect in play. According to the company's mineral resource summary, it has a combined resource base of 450,200 ounces of gold across IWB and Mt McClure.

Within that portfolio, Arrakis stands out because it is still at a discovery and delineation stage rather than a defined Mineral Resource Estimate. That means its value to the market is more closely tied to evidence of scale, continuity and grade trends than to formal ounces today.

Flushing Meadows also remains relevant in the near term. The company cited an existing 268,000oz at 1.1 g/t Au MRE there, and late July assay results from current diamond drilling may indicate whether that resource can be expanded or better defined.

Why the Arrakis Update Matters for ASX Gold Investors

This exploration update does not yet provide a resource estimate, and Yandal made clear that the current drilling density is not sufficient for Mineral Resource estimation at Arrakis. Even so, the results appear to strengthen several aspects of the geological case.

The current report supports:

• High-grade gold continuity at depth
• A southern higher-grade domain that remains open
• Mineralisation extending below a previously concerning structural feature
• A more developed understanding of structural controls
• A clearer basis for the upcoming Exploration Target

For investors, the central question is whether Arrakis can transition from a promising gold discovery into a system with a scale profile that justifies sustained market attention. According to the latest drilling update, Yandal is moving closer to answering that question.

The next key data point is expected in late July 2026, when the Arrakis Exploration Target is due to be published. Until then, the latest diamond drilling results suggest the company has improved confidence in both the depth potential and the geometry of the discovery, while maintaining multiple parallel exploration programmes across the broader IWB Gold Project.

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