Yandal Resources Ltd (ASX:YRL) has had strong validation of its gold exploration strategy and the strength of its projects with substantial shareholder DGO Gold Ltd (ASX:DGO) lifting its stake to 19.9%.
The prominent gold sector investor and successful gold explorer has secured an additional 6,612,781 shares at $0.48 each.
Melbourne-based DGO Gold, which has a market cap of approximately $265.5 million, now holds 19,987,550 shares in YRL, up from 13,374,769 that represented a 14.26% stake.
Investors have also reflected DGO’s confidence with YRL shares up as much as 16% higher intra-day to 61.5 cents.
Exploration successes
This confidence comes as Yandal continues to post exploration success at its suite of gold projects in WA’s Goldfields.
The strong news flow shows no signs of slowing with an aggressive work program ongoing, including:
- Receive and interpret assays from drilling completed at the Gordons Dam, Malone, Cleft, Sims Find, Cash and Flushing Meadows North prospects;
- Continued focus on drilling with four rigs at the Gordons Dam and Malone prospects to determine target size potential as soon as possible;
- A fifth rig is scheduled, subject to state border movements, to drill a 3,000-4,000 metres RC program later in July at the Mt McClure project.
- Preparation for investor site visits to Gordons Dam during the Diggers and Dealers Conference from August 1-5, 2021.
DGO Gold strategy
DGO’s strategy is to build a portfolio of gold discovery opportunities primarily through strategic equity investment and also through tenement acquisition and joint ventures.
It seeks to identify and invest in gold discovery opportunities that meet three key criteria:
- Low-finding cost – Brownfield gold discovery opportunities where finding costs are assessed to be comparable to the brownfields average of $20 per ounce;
- Potential for scale – Initial resource potential of greater than 3 million ounces, required to support successful development; and
- Upside optionality – Potential for long term resource growth well beyond 3 million ounces and potential for upside surprise via either a world-class discovery (+5 million ounces) or substantial high-grade mineralisation.
DGO holds strategic gold and copper/gold exploration land positions in Western Australia and South Australia where it would expect to participate as a funded joint venture partner or shareholder by way of equity exchange.