Highlights

  • Erak drillhole ERDD006 returned 36.1 metres at 2.3 grams per tonne gold.
  • Further Erak holes reported additional mineralised intersections.
  • Monte and St Nicholas have separate exploration activities and access requirements.
  • Cash at 30 September 2026 was about A$4.714 million.

Yugo Metals Limited (ASX:YUG) explores gold and other metals across projects in Bosnia and Herzegovina, including Golden Hills, Monte and St Nicholas. In the September 2026 quarter it reported a 36.1-metre gold intercept at Erak, while further fieldwork, licence renewals and its A$4.714 million cash balance form the context for the next stage of exploration.

Golden Hills and Erak

Nine diamond drillholes have been completed at Erak and drilling is continuing. Other reported results include 22.4 metres at 1.1 grams per tonne gold in ERDD007, 6.0 metres at 1.5 grams per tonne in ERDD008, and 10.4 metres at 2.6 grams per tonne in ERDD009. The company said the intercepts remain open in several directions and that additional holes are planned. These are exploration results and do not constitute a mineral resource.

Monte and St Nicholas

For ASX:YUG, at the Monte project, four initial diamond holes totalling about 600 metres began in August 2026 at the Majdan and Pisonica prospects. They are designed to test depth extensions below outcrops where the company has reported mineralisation of up to 1.9 grams per tonne gold, 220 grams per tonne silver and 13.6% lead. Further drilling depends on the initial results, and details are expected in the coming quarter.

At the St Nicholas project, a Land Access and Lease Agreement covering planned drill sites at the Petrovo tenement was signed after quarter end. Surface rock chip samples there have returned up to 5.7 grams per tonne gold and 1,330 grams per tonne silver. As part of the access arrangements, 18,000,000 fully paid ordinary shares were issued on 9 October 2026.

Cash and funding

For ASX:YUG, cash at 30 September 2026 was about A$4.714 million, down from A$6.285 million in the previous quarter. The company has no debt and no undrawn facilities. Operating outflow in the quarter was A$1.56 million, including A$1.07 million of exploration and evaluation spending. Related-party payments were A$163,000, comprising A$133,000 to directors and A$30,000 to Bayonne Corporate Pty Ltd.

The company estimated its funding runway at about 3.0 quarters, which implies it is likely to need additional capital within roughly nine months at the current rate of spending. That is a key risk for a company with active drilling programmes across several projects.

Capital structure

Yugo has 431,100,586 fully paid ordinary shares on issue, including the 18,000,000 shares issued in October. Options include 98,897,000 listed YUGOB options with an exercise price of A$0.02, expiring 15 August 2028, plus several series of unlisted options with exercise prices from A$0.02 to A$0.145.

Tenement deadlines

For ASX:YUG, the licence position carries near-term timing risks. The Doboj (St Nicholas) tenement expired on 19 October 2026 and is in extension, with formal approval expected in early November 2026. The Sinjakovo (Golden Hills) licence expires on 30 December 2026 and Monte Cajnice on 8 December 2026. Petrovo runs to 10 March 2029 and Jezero to 4 March 2028.

Next milestones and risks

Confirmed next steps are continued drilling at Erak with follow-up holes, Monte drilling results and further drilling details next quarter, and the Doboj extension decision in early November. The company also said it is assessing acquisitions in tier 1 jurisdictions.

The report carries the usual exploration risks: results are early-stage, resource potential is uncertain, and the licences require timely renewal. Combined with the limited cash runway, the company's ability to extend drilling beyond the planned holes may depend on raising further funds. The company did not disclose any specific plans for a capital raising in the report itself, which is dated 29 October 2026.

Key Insights

ASX:YUG reported measurable gold intersections at Erak, but additional drilling is necessary to understand continuity and scale. Licence renewals and available funding are material conditions for the work programme. The results remain exploration findings rather than production figures or an established mineral resource.