Yugo Metals Limited (ASX: YUG) has launched its maiden drilling campaign at the Sinjakovo Project in Bosnia-Herzegovina with results that immediately strengthen the geological case for the Kovacevac prospect. The Company has intersected high-grade polymetallic silver-lead-zinc mineralisation in its first three diamond drill holes, marking a significant milestone for this emerging European explorer.
From the outset, management has framed these early results as exactly what a junior explorer hopes to see at this stage of a project. As Executive Director and Interim CEO, Petar Tomašević explained:
“Our drilling at Kovacevac prospect has had a strong start. Polymetallic high-grade silver-lead-zinc mineralisation was encountered on the first drill program, which is exactly what explorers hope to see in the early stages of a project.”
This initial success has justified Yugo’s geological model and validated its targeting strategy within the highly prospective Tethyan metallogenic belt.
Figure 1: Kovacevac and other prospects in the Sinjakovo Project. [Yugo Metals]
Standout intercept signals real potential
The highlight of the program so far came from drillhole KVDD001, which returned a remarkable intersection of:
- 1.2 metres at 129 g/t silver, 11.7% lead and 0.9% zinc from 28.2 metres,
including a core interval of 0.7 metres at 218 g/t silver and 20% lead.
This hole tested the deepest known part of the barite vein system to date and demonstrated that high-grade mineralisation persists at depth. The drilling orientation, nearly perpendicular to the vein, increases confidence that these results closely approximate true widths.
Two additional holes supported the discovery:
- KVDD002 intersected 1.1 metres at 28 g/t silver and 1.0% lead.
- KVDD003 encountered a probable medieval mining void before intersecting a barite vein carrying lower-grade silver, lead and zinc.
Together, these holes confirm that Kovacevac hosts a coherent mineralised system rather than isolated pockets of enrichment.
Figure 2: Cross-section of KVDD001 showing barite vein and mineralised zones. [Yugo Metals]
Why polymetallic systems matter
Beyond grades alone, Yugo’s discovery carries strategic importance because it contains three valuable metals in one system. Mr Tomašević placed this firmly in a broader market context:
“Polymetallic projects like Kovacevac are particularly attractive because they offer exposure to multiple commodities. Silver provides precious metal leverage, while lead and zinc are essential industrial metals with strong demand in batteries, galvanization, and infrastructure. A deposit with all three commodities can be resilient to market swings, as revenue streams are diversified.”
This diversification reduces reliance on any single metal price and positions Kovacevac as a potentially robust asset through commodity cycles.
Geology: what the rocks are telling Yugo
Drilling shows that mineralisation sits within brecciated marbly limestone, closely associated with a gently south-west dipping barite vein. Galena (lead sulphide) and sphalerite (zinc sulphide) occur both as disseminations and along veinlets and foliation planes.
Recent drilling has intersected around 4 metres of brecciated limestone and barite, with visual estimates suggesting 1–5% sulphides across broader zones and locally stronger concentrations above 5%.
Key geological takeaways:
- The barite vein appears structurally controlled.
- Mineralisation trends consistently along strike.
- The system remains open both laterally and at depth.
Figure 3: Unprocessed PQ drill core from hole KVDD006 (note: hole numbering is non-sequential), displaying brecciated marbly limestone and barite between approximately 52m and 57m depth, with scattered galena–sphalerite mineralisation. [Yugo Metals]
Open along strike – a critical upside driver
One of the most important aspects of the results is that the mineralisation does not appear to be closed off. This has major implications for future growth.
Mr Tomašević highlighted this clearly:
“The fact that mineralisation remains open along strike suggests that mineral system hasn’t been closed off yet, so further drilling could extend the mineralisation. Kovacevac could be shaping up as a promising polymetallic project.”
This statement underpins Yugo’s current drilling strategy, which is now focused on testing strike extensions from a second drill pad.
Drilling strategy and next steps
Yugo has completed drilling from its first pad and moved to a second pad to test the western extension of the mineralised system. Three drill pads have been prepared in total, with multiple short “scout” holes planned from each location.
The ongoing program aims to:
- Map the lateral continuity of the barite vein
- Test deeper targets along the same trend
- Improve structural understanding of the system
- Identify potential new zones of mineralisation
Drilling continues at high angles to the vein, reducing sampling bias and improving confidence in intercept widths.
Figure 4: Plan view map of Kovacevac showing drill holes and historic tunnels. [Yugo Metals]
Share price performance: market backing the story
Yugo’s share price performance reflects growing investor confidence in its European critical metals strategy.
Share Price Activity (ASX)
- Last price: $0.053
- Daily change: +$0.001 (+1.92%)
Performance
- 1 week: +1.92%
- 1 year: +430.00%
- vs ASX 200 (1 year): +423.76%
This dramatic outperformance suggests the market already sees meaningful optionality in Sinjakovo.
Figure 5: 12-month YUG share price chart. [ASX]
Strategic context: Europe’s battery metals corridor
Sinjakovo sits within the Tethyan belt, one of Europe’s most mineral-rich provinces. Its proximity to existing infrastructure and transport routes strengthens its strategic appeal, particularly as Europe seeks to secure domestic battery and critical metal supply chains.
Zinc supports galvanisation and corrosion protection, lead remains vital in battery storage systems, and silver plays a key role in electronics and renewable technologies. Together, these metals align strongly with future-focused industries.
Figure 6: Major uses of Zinc, Lead and Silver
Investors Outlook
Yugo Metals is progressing from early discovery into a more advanced exploration phase at Sinjakovo, backed by strong initial drilling results at Kovacevac. The high-grade intercept in KVDD001 confirms the presence of a meaningful silver–lead–zinc system. The possibility of additional growth through continued drilling is provided by the mineralisation remaining open along strike.
The Company is in a strong position to gain from ongoing exploration success and ongoing investor interest as follow-up results from more drill pads surface because of its exposure to strategically significant metals in the extremely promising Tethyan belt.
