Albion could host WA’s next big gold play CEO Peter Goh says

Albion Resources believes it has the geology and financial backing to make a major gold discovery in WA’s Yandal Province. 

Albion is set to commence maiden drilling in the multi-million ounce Yandal province next month. Pic: Getty Images

• Albion’s new CEO Peter Goh is hunting for the next discovery in WA’s Yandal gold province

• Yandal West project has the right geology in the right region with three mills nearby

• Company is confidence of project’s potential considering current gold prices

 

Albion Resources has a new CEO at the helm as it looks to unearth a major greenfields discovery in WA’s Yandal gold province.

The company holds the Yandal West project, which sits around 55km north of Northern Star Resources' (ASX:NST) Bronzewing gold mine and 60km south of its Jundee gold mine, a multi-million ounce district producing around 300,000ozpa.

The region is, however, remote and remains underexplored as underlined by the success of neighbour Yandal Resources (ASX:YRL), which drew serious investor interest last year with the Siona gold discovery 20km southeast of Yandal West – 107m at 1g/t Au from 96m to end of hole.

For new CEO Peter Goh, these are just some of the many X-factors that drew him to the role with Albion Resources (ASX:ALB).

“It’s in the world class Yandal greenstone belt, and within 60km of us there’s three processing plants, which was a huge strategic advantage and tick for me when I was doing my due diligence,” Goh said.

“Not only is this a big tick of approval for resource endowment in the area, with big players nearby, geologically we know there’s gold mineralisation on the tenements, there’s been historical drilling there, there’s been historical mining there back in the 1900s and it’s significantly underexplored.

“We think we can apply new exploration techniques and that will offer a really good opportunity in this rising gold market.”

Gold bull market

Coming from a background as a chartered accountant and an analyst building financial models with IPM Global before a stint in business development with Iluka Resources (ASX:ILU), Goh brings a wealth of knowledge and passion about junior resources and small caps to the company.

With this background in financial analysis, when Goh says the company’s finances are strong, he knows what he’s on about.

“They’ve got $4m in the bank, a tight capital structure with only 132m shares on issue, and it has strong support from the top 20 shareholders, who have about 57% of the register,” Goh said.

“So with the geology and the finances, we have all the right ingredients to have some success here.

“When that opportunity came across my desk it was an easy decision to make the move over from the very structured role with Iluka into this small cap space, and I’m really excited about it.”

That’s a strong launching pad for a junior in the current gold market, with prices riding high at close to A$5000/oz.

Peter Goh. Pic: ALB

Don’t need 1Moz to create value

Goh notes that the landscape for gold exploration has shifted in the last few years, where historically juniors needed to demonstrate a pathway to 1Moz before really being taken seriously by the market and majors.

Now some outperformers boast far smaller resources, which are cash printing machines with US dollar prices of around US$3150/oz.

“To the north of us is Strickland Metals (ASX:STK) who pulled up a 350,000oz deposit and they sold that to Northern Star (ASX:NST) for $61m in 2023,” Goh said.

“That’s not a 1Moz deposit that’s 350,000oz close to the Jundee mine.

“So that highlights that if processing plants are hungry, being close strategically offers some value for small scale deposits.

“We haven’t started drilling and I don’t want to get ahead of myself here, but you don’t need that 1Moz mark to add value.”

Goh also flagged new director Chris Tuckwell, who came along with the Yandal West acquisition, is another feather in the company’s cap.

“That’s a huge win for us,” he said.

“He has 11 years’ experience with MACA, the mining contractor, so if we do have some success here, and obviously we’ve got to walk before we can run, but he will be invaluable to me and to the company as we try to unlock value for shareholders.”

The Yandal West Project on the Yandal Greenstone Belt and major gold mines and discoveries and nearby operating companies. Pic: ALB

Earlier this month, the company announced two promising drill targets identified via a dipole induced polarisation survey which have never been touched by the drill bit and are expected to be encountered at shallow depths.

Albion is just waiting on soil samples to come through, with heritage surveys underway and plans drill these promising new targets as part of its maiden campaign in June.

At Stockhead, we tell it like it is. While Albion Resources is a Stockhead advertiser, it did not sponsor this article.

Originally published as Albion could host WA’s next big gold play CEO Peter Goh says