Nelson Resources Clears Yarri Approvals as MEGA Targets December Drilling Start
Key Takeaways
- MEGA Resources is now targeting December 2026 for the start of Phase 1 RC drilling at Yarri, after statutory approvals delayed the original post-January 2026 mobilisation.
- All approvals are in place, including granted Mining Leases M31/503 and M31/504 and a Program of Work for 230 holes totalling 11,544m.
- MEGA sole-funds up to A$10 million of initial development and working capital under the Right to Mine agreement, keeping capital demands off Nelson.
- The December timing is only "in or about", and depends on MEGA's other projects and a decision to commit the next phase of expenditure.
- Investors should watch for a confirmed mobilisation date, the start of the roughly 3,000m Phase 1 program, and MEGA's next-phase funding decision.
Yarri Gold Project drilling now targeted for December 2026
Nelson Resources (ASX: NES) has advised that MEGA Resources is now targeting December 2026 for the start of Phase 1 reverse-circulation drilling at the Yarri Gold Project. The program has not yet commenced.
Reverse-circulation (RC) drilling is a method that brings rock chips to the surface for analysis. The earlier start was held up by statutory approvals, and the company says all approvals are now in place.
The timing is described as “in or about” December 2026. It depends on MEGA scheduling the work around its other active projects, and on a decision to commit the next phase of expenditure.
For you as an investor, the approvals hurdle is cleared and MEGA is responsible for funding under the agreement. What remains is a scheduling question rather than a permitting one.
Gernot Abl, Chairman, Nelson Resources
“The approvals at Yarri are in place for this planned drill program. MEGA has advised that commencement is now targeted for December, subject to its other operating schedules. We will update shareholders once a mobilisation date is locked in”
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Approvals and agreement terms remain in place
Key project facts
The announcement confirms the following position at Yarri:
- Mining Leases M31/503 and M31/504 are granted
- The Program of Work for 230 holes totalling 11,544m remains approved
- Phase 1 is approximately 3,000m
- The Right to Mine agreement remains on foot
Under the Right to Mine agreement, MEGA remains responsible for funding and for meeting the minimum annual expenditure commitments on the tenements. That means the tenement obligations stay with the partner, not with Nelson.
How the timeline evolved
The schedule has moved since the program was first approved. The table below sets out the dates referenced in the announcement.
| Date | Milestone | Status |
| 1 December 2025 | Program of Work approved for 230 holes totalling 11,544m | Approved; drilling expected to commence following contractor mobilisation |
| 21 January 2026 | MEGA appoints Australian Surface Drillers | Mobilisation expected shortly thereafter |
| 9 October 2026 | Schedule update released | Statutory approvals delayed mobilisation; commencement now targeted for December 2026 |
The announcement also refers back to a 1 October 2025 release on the MEGA partnership, which set up the current arrangement.
Understanding the Right to Mine model
A Right to Mine agreement lets a partner take on the funding and operating of work on a project held by a smaller company. For a junior explorer, that can reduce the amount of its own money needed to advance the ground.
At Yarri, the partner is MEGA Resources, an Australian subsidiary of Bain Global Resources and part of the BGR Mining & Infra group (order book exceeding A$18 billion). MEGA sole-funds up to A$10 million of initial development and working capital through to a decision to mine, manages permitting, and would undertake mining and haulage to a third-party plant.
In practical terms, Nelson’s partner carries the funding load under this structure, which limits direct capital demands on the company.
The Yarri partnership structure places the funding burden on MEGA through to a decision to mine, which is why scheduling rather than capital has become the main variable for the Phase 1 program.
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What shareholders can watch next
Three markers will show whether the program is moving forward:
- Confirmation of a mobilisation date, which Nelson says it will announce
- Commencement of the Phase 1 program of approximately 3,000m
- MEGA’s decision on committing the next phase of expenditure
The announcement’s competent person’s statement draws on earlier releases, including prior high-grade gold intercepts of up to 69.9g/t Au. These are historical references from earlier announcements, not new results.
Nelson has confirmed approvals are in place, and the next update is expected when a mobilisation date is confirmed.
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