Yandal Resources Ltd (ASX: YRL) this week reported new drilling results from its Siona prospect, which have piqued the interest of analysts at Shaw and Partners.
They have a buy rating on the company, albeit labelling it high risk, and a bullish share price target, which we'll get to shortly.
First, let's see what the company announced.
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Encouraging new gold exploration results
Yandal, in a statement to the ASX, reported the results from nine shallow exploration holes at Siona, with gold grades of up to 5 grams per tonne over a 3m intersection reported.
The company said regarding the drilling:
Results have demonstrated a coherent horizontal (flat) zone of gold mineralisation within the upper regolith profile occurring broadly to the southwest of the Primary Siona mineralisation.
Yandal Resources Managing Director Chris Oorschot said:
Our previous RC and diamond drilling across the Siona gold discovery (in late 2024 and early 2025) included a number of mineralised intervals that were either outside of, or presenting a different geometry relative to the main Siona mineralised trend. These nine shallow RC holes were focussed on a possible trend situated to the southwest of the main mineralised structure. The results show an almost horizontal zone of gold mineralisation that includes some discrete higher-grade intervals. The shallow nature and consistent geometry are very encouraging and will certainly add to the Mineral Resource potential of the Siona Prospect.
Further exploration drilling will kick off in the coming weeks, the company said.
A broader exploration program will also be made public following a strategic review in late July, with the company adding that it was in a strong cash position.
Shares looking cheap
Shaw and Partners said in their note to clients that they envisaged the gold resource at the project growing substantially.
YRL already has 450koz of Resource gold largely on existing mining leases, with strong extension potential and in the vicinity of multiple gold mills owned by other corporates. Further, ongoing drill results already suggest YRL has a realistic path to reach ~1Moz of Resources within a year. Upside to our price target could come from YRL's attractive ongoing exploration potential. Additionally, corporate optionality in the Yandal region could add further upside potential to our stock valuation.
Shaw and Partners has a 51-cent per share price target on the company, compared to 20 cents currently.
If achieved, this would constitute a 153.9% return. Yandal Resources is valued at $76.3 million.
