Albion Resources Advances Yandal West Gold Exploration Targets

Albion Cashes in on Mongers Lake Sale to Fast-Track Gold Exploration Success

Albion Resources (ASX: ALB) has successfully completed the sale of its Mongers Lake Project to Capricorn Metals (ASX: CMM), securing $1.5 million in immediate funding to accelerate exploration at its promising Yandal West Gold Project. The transaction strengthens Albion’s financial position while maintaining significant future upside through milestone payments.

Strategic Divestment Delivers Immediate Value and Future Potential

Albion has finalized its previously announced binding agreement with Capricorn Metals for the Mongers Lake Project in Western Australia’s Murchison region. The deal structure provides Albion with:

• • $100,000 non-refundable cash deposit (already received)

• • 149,784 Capricorn Metals shares valued at $1.4 million (based on 20-day VWAP of $9.35)

• • Potential future milestone payments totaling up to $1.5 million, including:
    • • $750,000 upon announcement of a JORC-compliant resource exceeding 75,000oz gold

     

    • • $750,000 upon Capricorn announcing a decision to commence mining operations

     

This transaction represents a strategic win for Albion, providing both immediate liquidity and potential long-term benefits from Capricorn’s development of the asset.

“This transaction places Albion in a strong financial position, with both immediate funding and a strategic shareholding in a leading Australian gold producer. Importantly, it allows us to accelerate drilling and target generation at Yandal West, where we’ve already had great success.” – Peter Goh, CEO of Albion Resources

Capital Redeployment: Accelerating High-Grade Success at Yandal West

The timely cash injection allows Albion to focus its resources on the highly prospective Yandal West Gold Project, where recent drilling has delivered exceptional results. The company’s July 25 announcement revealed outstanding high-grade, near-surface gold intercepts at the Collavilla prospect, including:

• • 11m @ 20.0g/t Au from just 17m depth

This impressive intersection demonstrates the potential of the Albion Resources Yandal West exploration project to host significant high-grade gold mineralization at shallow depths, making it an ideal candidate for accelerated exploration.

Understanding JORC Resources: Why They Matter to Investors

A JORC-compliant Mineral Resource Estimate is a standardized way of reporting mineral discoveries according to the Australasian Joint Ore Reserves Committee (JORC) Code. This code ensures that resource estimations follow strict guidelines regarding sampling, analysis, and reporting.

The significance for investors is threefold:

1. 1. Credibility: JORC compliance provides confidence that reported resources meet industry standards

1. 1. Comparability: Allows for meaningful comparison between different projects and companies

1. 1. Valuation impact: Companies typically experience share price revaluation as they progress from exploration to defined resources

In Albion’s case, the milestone payment tied to Capricorn announcing a 75,000oz JORC resource at Mongers Lake provides additional upside while allowing Albion to focus capital on its more advanced Yandal West project.

Yandal West: Building on Recent Exploration Success

The Yandal West Gold Project has emerged as Albion’s flagship asset, located in one of Western Australia’s premier gold districts. The recent high-grade intersection at Collavilla (11m @ 20.0g/t Au from 17m) is particularly significant for several reasons:

1. 1. Grade: At 20.0g/t Au, this result significantly exceeds the typical economic threshold for gold projects

1. 1. Depth: The shallow nature (starting at just 17m) suggests potential for low-cost extraction

1. 1. Width: An 11-meter intersection indicates potentially mineable widths

With funding now secured, Albion Resources Yandal West exploration plans are set to accelerate across multiple high-priority targets. The company aims to build on its recent success with additional drilling to define the extent of mineralization at Collavilla and test other promising targets within the project area.

Strategic Positioning in a Buoyant Gold Market

Albion’s strategic focus on the Yandal region positions the company well in the current gold market environment. The Yandal Greenstone Belt has a proven history of hosting significant gold deposits, including several multi-million-ounce discoveries.

The company’s two-pronged approach provides investors with compelling exposure to gold exploration:

1. 1. Near-term exploration upside through the drill bit at Yandal West

1. 1. Long-term optionality through milestone payments tied to Mongers Lake development

This balanced strategy allows Albion to concentrate its resources on the most promising assets while maintaining exposure to potential upside from divested projects.

Why Investors Should Watch Albion Resources

Albion Resources presents a compelling investment case for several key reasons:

1. 1. Strong financial position: The Mongers Lake transaction strengthens the balance sheet without dilution

1. 1. Proven exploration success: Recent high-grade results demonstrate the potential of the Yandal West project

1. 1. Strategic focus: Concentration of resources on the most promising assets

1. 1. Experienced leadership: Management has demonstrated ability to create value through strategic transactions

1. 1. Multiple potential catalysts: Upcoming drilling results and potential milestone payments provide numerous share price catalysts

With the proceeds from the Mongers Lake sale now secured, Albion Resources Yandal West exploration is well-positioned to accelerate. Investors can anticipate a steady flow of news as the company deploys this capital into its drilling programs across multiple high-priority targets, potentially building on the impressive results already achieved at the Collavilla prospect.

As Albion advances its exploration at Yandal West while maintaining upside exposure to Mongers Lake through milestone payments, the company offers investors a balanced opportunity for exposure to gold discovery in one of Australia’s premier mining jurisdictions.

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