Yellow Rock Resources (ASX:YRR) has confirmed the existence of a high-grade zone at its Gabanintha Vanadium project in Australia. The company has just completed a 63 hole RC drill program and the drill results are quite encouraging as Yellow Rock intercepted relatively long intersections (12-16 meters) at a high grade (1.24%-1.36% V2O5).
The mineralization remains open along strike (less than 20% of the 12 kilometer strike length has been tested so far) and at depth, so Yellow Rock could very well be sitting on one of the largest vanadium resources in the world.
The drill results will be incorporated in an updated resource estimate and we hope to see a substantial increase in the resources due to a higher average grade and a higher tonnage. An updated resource estimate could then be used to fine-tune the economics of a vanadium mine at Gabanintha.
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Disclosure: The author holds no position in Yellow Rock Resources. Please see our disclaimer for current positions.
