Yandal Resources Completes Gordons Gold Project Sale for $2.81 Million

Yandal Resources Executes Strategic Sale of Gordons Gold Project for $2.81 Million

Yandal Resources (ASX: YRL) has executed a binding Tenement Sale Agreement with Horizon Minerals Limited (ASX: HRZ) for the sale of its Gordons Gold Project for $2.81 million in combined cash and shares. This strategic divestment aligns with the company's previously announced plan to focus on core assets while maintaining a strong financial position.

Strategic Divestment Bolsters Exploration Funding

The sale transaction includes an initial $200,000 refundable cash deposit (already paid), followed by $1 million cash upon completion, and $1.61 million in fully paid ordinary Horizon shares. Notably, Horizon maintains the option to pay the entire $1.61 million in cash rather than shares at completion. The Consideration Shares will not be subject to escrow restrictions, providing Yandal with flexibility regarding the timing of any potential sale.

This transaction comes at a strategic time for Yandal, which reported a healthy cash position of $4.7 million at the end of June 2025. The additional funds from this sale will significantly enhance the company's ability to advance exploration activities across its priority projects.

"We are very pleased to have executed on the sale of one of our non-core assets. This sale will provide Yandal with additional cash to fund our very active exploration schedule for the second half of 2025 and well beyond," said Chris Oorschot, Managing Director of Yandal Resources.

The sale is expected to be completed in the September Quarter 2025, subject to customary closing conditions, including obtaining necessary regulatory and third-party approvals.

Focus Shifts to High-Potential Ironstone Well-Barwidgee Gold Project

The divestment is part of Yandal's previously announced strategy to concentrate resources on its core Ironstone Well-Barwidgee Gold Project. This strategic focus allows the company to allocate capital more efficiently toward areas with the highest potential return on investment.

The company is currently advancing exploration at the Caladan target area, where results from the first 46 holes of a 132-hole air-core drilling program have already defined a possible 1.2km mineralised trend at the Arrakis prospect. Additional results from this drilling program are expected in the coming weeks, potentially providing significant catalysts for the stock.

Understanding Air-Core Drilling: A Cost-Effective Exploration Approach

Air-core drilling represents an efficient exploration technique that bridges the gap between surface sampling and more expensive drilling methods. This approach involves using compressed air to drive a rotating blade bit, allowing for relatively quick and cost-effective sampling of the subsurface to depths typically ranging from 20-100 meters.

For investors, air-core drilling programs are significant because they:

1. Provide a cost-effective initial test of larger areas
2. Help identify potential mineralised trends before committing to more expensive drilling
3. Generate data that guides subsequent, more targeted exploration efforts

The 132-hole program at Caladan demonstrates Yandal's methodical approach to exploration, with the already-identified 1.2km mineralised trend at Arrakis suggesting the company's targeting methodology is yielding promising results.

The Technical Process of Air-Core Drilling

Air-core drilling utilises a hollow steel tube with a hardened steel or tungsten blade bit that cuts through the regolith (weathered rock and soil). Compressed air is forced down the drill rods and returns up the outside of the rods within the hole, carrying the sample to the surface.

This method is particularly effective in areas with:

• Soft to medium-hard rock formations
• Deep weathering profiles common in Western Australian goldfields
• Transported cover that masks underlying bedrock

The samples collected through air-core drilling provide geologists with information about subsurface geology, geochemistry, and potentially the presence of mineralisation. This data is essential for mapping geological structures and identifying targets for more detailed follow-up drilling using methods such as reverse circulation (RC) or diamond drilling.

Limitations and Benefits

While air-core drilling provides valuable preliminary data, it does have limitations:

• Limited penetration in hard rock environments
• Generally lower sample quality compared to RC or diamond drilling
• Not suitable for resource definition

However, these limitations are outweighed by significant benefits for early-stage exploration:

• Cost-effectiveness (approximately 30-50% cheaper than RC drilling)
• Rapid testing of large areas
• Minimal environmental impact
• Ability to penetrate through transported cover to reach bedrock

For Yandal Resources, the current air-core program represents a strategic approach to efficiently test prospective areas before committing to more expensive drilling methods. The early identification of a 1.2km mineralised trend at Arrakis demonstrates the effectiveness of this approach.

Future Plans and Upcoming Catalysts

Yandal's near-term plans include:

• Completion of the Gordons Gold Project sale in the September Quarter 2025
• Receiving and analysing remaining results from the 132-hole air-core program at Caladan
• Advancing exploration across both the Caladan and New England Granite target areas
• Potential follow-up drilling programs based on positive air-core results

The timing of these developments creates multiple potential catalysts for investors over the coming months, particularly as further drilling results become available.

Investment Thesis: Focused Explorer with Strong Financial Position

Yandal Resources presents an interesting investment case based on several key factors:

1. Strategic Focus: The company is methodically divesting non-core assets to concentrate on high-potential exploration targets.

2. Strong Financial Position: With $4.7 million in existing cash plus an additional $2.81 million from the Gordons sale, Yandal is well-funded for extensive exploration without near-term dilution concerns.

3. Active Exploration Program: The ongoing air-core drilling program has already identified a significant mineralised trend, with more results pending.

4. Experienced Leadership: The company is led by Managing Director Chris Oorschot and a board with extensive experience in the Western Australian gold sector.

5. Prime Exploration Territory: Yandal's projects are located in the highly prospective Yandal and Norseman-Wiluna Greenstone Belts of Western Australia, regions known for hosting significant gold deposits.

Financial Implications of the Gordons Sale

The sale of the Gordons Gold Project has several positive financial implications for Yandal Resources:

*Assumes full cash consideration rather than partial share payment

This improved financial position enables Yandal to:

1. Accelerate exploration activities across priority targets
2. Respond quickly to positive drilling results with follow-up programs
3. Maintain exploration momentum through 2025 and into 2026
4. Potentially avoid dilutive capital raising in the near term

Why Investors Should Follow Yandal Resources

Yandal Resources represents an opportunity for investors seeking exposure to gold exploration in a premier mining jurisdiction with a company that maintains fiscal discipline. The combination of strategic asset management, strong cash position, and active exploration programs positions Yandal to potentially deliver significant value through discovery.

The pending results from the Caladan air-core program could serve as near-term catalysts, while the completion of the Gordons Gold Project sale will further strengthen the company's balance sheet. With approximately $7.5 million in cash after the transaction completes, Yandal will have substantial financial flexibility to advance its exploration agenda without diluting shareholders in the near term.

For investors interested in junior gold explorers with a solid financial foundation and clear strategic focus, Yandal Resources warrants consideration as a portfolio addition with both near-term catalysts and longer-term discovery potential.

Ready to Capitalise on Yandal's Strategic Gold Exploration?

As Yandal Resources advances its focused exploration strategy with a strengthened balance sheet of over $7.5 million, now is an opportune time to consider the company's investment potential. With promising mineralisation already identified at the Arrakis prospect and multiple near-term catalysts on the horizon, discover how this ASX-listed gold explorer could deliver significant shareholder value. For comprehensive information about Yandal's projects, upcoming exploration programs, and investment opportunities, visit Yandal's dedicated investor hub today.