Funding and Regulatory Hurdles Loom as Nagambie Advances Antimony-Gold Project

Exploration Breakthroughs at Nagambie Mine

Nagambie Resources has delivered compelling exploration results in its latest quarterly report to 31 March 2025, highlighting notable antimony-gold intersections beneath the West Pit at the Nagambie Mine. Assays announced in February revealed grades as high as 24.7 g/t gold equivalent (AuEq), combining 4.7% antimony (Sb) with 3.1 g/t gold over 1.26 metres estimated horizontal thickness (EHT). Another hole returned 19.8 g/t AuEq, underscoring the richness of the mineralisation.

Further diamond drilling has uncovered visually significant stibnite veining approximately 130 metres east of the previously known C1E vein, at a depth of 123 metres below surface. This new discovery, reported in mid-April, could materially increase the gold equivalent ounces per vertical metre, enhancing the project's resource potential ahead of the planned JORC resource update scheduled for the June quarter.

Strategic Positioning Amid Surging Antimony Prices

Amid these geological advances, Nagambie Resources has strategically aligned itself by joining the Defence Industrial Base Consortium (DIBC), a US Department of Defence initiative focused on securing critical mineral supply chains, including antimony. This move reflects the growing importance of antimony in military applications and renewable energy technologies, particularly solar power, where demand is outstripping supply due to declining production and export restrictions from China.

The antimony price in Western markets surged 40% during the quarter, reaching A$88,409 per tonne, reinforcing the commodity's strategic value. Nagambie's membership in the DIBC could open avenues for collaboration, funding, and market access, potentially elevating the company's profile among defence and industrial stakeholders.

Financial Developments and Project Advancements

On the financial front, Nagambie Resources has strengthened its liquidity position by increasing its Flexible Working Capital Facility with PPT Nominees Pty Ltd by $1 million to a total of $3 million. Additionally, the company fully redeemed its Series 8 Convertible Notes in January 2025, reducing outstanding convertible debt by $5.58 million since late 2023, with $2.96 million remaining.

Operationally, Nagambie is progressing plans for a 300,000 tonnes per annum toll treatment plant at the Nagambie Mine under a joint venture with Golden Camel Mining Pty Ltd. While Golden Camel Mining is managing the project and seeking necessary funding, the plant is designed to process ore from Golden Camel’s permitted mine initially, with revenues and costs shared equally post-commissioning. This infrastructure is critical to unlocking value from the expanding resource base.

Exploration Beyond Nagambie Mine

Exploration activities also extended to the Whroo tenements, where historical mining of antimony veins in the late 1800s has been documented. These veins share structural and mineralogical similarities with the C-style veins at Nagambie Mine, suggesting further upside potential within the company's 100%-owned tenement portfolio spanning 914.5 square kilometres in central Victoria.

Meanwhile, the company is liaising with the Victorian Earth Resources Regulator regarding a reassessment of rehabilitation liabilities, currently secured by a $500,000 bond, reflecting ongoing regulatory engagement.

Looking Ahead

With assay results pending from recent drilling and a resource update imminent, Nagambie Resources is poised at a pivotal moment. The convergence of strong exploration results, strategic consortium membership, and advancing project infrastructure could catalyse renewed investor interest and market momentum. However, funding for the treatment plant and the evolving regulatory landscape remain key variables to monitor.