Nelson Resources (NES.ASX) has recently released the assay results from a Reverse Circulation drill program conducted on its Yarri gold project in Western Australia. The project is located in a very interesting spot as it’s surrounded by several other (larger) gold projects indicating there could perhaps be some synergy advantages further down the road.
At the Wallaby prospect, Nelson drilled 8 meters at 18.1 g/t gold, 9 meters containing 14.6 g/t and a few narrower 4 meter intervals. The 8 meter interval started at a depth of 101 meters downhole while the 9 meter zone started at a depth of 70 meters. Both zones contained a high grade interval of respectively 3 meters at 44.1 g/t gold and 4 meters at 30.2 g/t gold indicating the remaining portions of the holes were respectively 5 meters at 2.5 g/t gold and 5 meters at 2.12 g/t gold, so there definitely was some smearing as the zones that contain the majority of the gold are narrower, but have a much higher grade.
Nelson deployed a similar strategy on its Gibberts prospect where its 6 meters at 13.2 g/t gold (a very shallow intercept which starts just 15 meter below surface) also contains 1 meter of 69.9 g/t gold. This means the remaining 5 meters of the hole contained an average grade of 1.86 g/t. Still fine as it’s close to surface, but it’s definitely less impressive and Nelson’s high-grade intervals appear to be narrow ultra-high-grade zones with some sort of ‘halo’ with a few grams per ton surrounding it.
We agree with Nelson these gold zones justify another drill program, and the company is planning to complete a 5-week drill program completing 5,000 meters of drilling in 50 shallow holes (reaching an average depth of just 100 meters per hole).