Nagambie Resources has amended its drilling update to include detailed economic assumptions and geological parallels with the nearby Costerfield Mine, reinforcing confidence in its Nagambie Mine project.
- Diamond drilling recommenced after $1.2 million capital raise
- High-grade antimony-gold lode (7.3m at 40.5 g/t AuEq) targeted for follow-up
- New sections detail gold equivalent factor and metallurgical assumptions
- Geological similarities highlighted between Nagambie and Costerfield deposits
- Current JORC Inferred Resource remains unchanged pending new drill results
Diamond Drilling Resumes at Nagambie Mine
Following a successful $1.2 million capital raising, Nagambie Resources Limited (ASX, NAG) has recommenced diamond drilling at its 100%-owned Nagambie Mine. The initial focus is on expanding the promising C4 lode, which previously returned an impressive intersection of 7.3 metres grading 40.5 grams per tonne gold equivalent (AuEq), including 7.0% antimony (Sb) and 1.8 g/t gold (Au).
Clarifying Economic Assumptions with Gold Equivalent Factor
In an amended announcement, Nagambie has provided greater transparency on how it calculates the gold equivalent grades that underpin its resource estimates. The company uses a formula that factors in current market prices and metallurgical recoveries for both gold and antimony, reflecting their combined economic value. Notably, Nagambie assumes a conservative 93% recovery rate for antimony, slightly below the 95% achieved at the nearby Costerfield Mine, to ensure prudent resource valuation.
Geological Parallels with Costerfield Strengthen Project Outlook
Highlighting the geological kinship between Nagambie and the established Costerfield Mine, the company points to similar mineralisation styles, including quartz-carbonate veins hosting massive stibnite (antimony sulphide) with disseminated gold. Both deposits lie within the Melbourne Structural Zone and share host rock characteristics, suggesting that metallurgical processes proven at Costerfield could be effectively applied at Nagambie. This comparison bolsters confidence in the project's potential and supports the economic assumptions used in resource modelling.
Resource Status and Forward-Looking Considerations
While drilling has resumed, Nagambie confirms that no new material information affecting the current JORC Inferred Resource has emerged since previous announcements. The company plans to progressively update the resource estimate as new data becomes available, with a Competent Person overseeing the process to ensure compliance with reporting standards. Forward-looking statements caution investors about inherent risks and uncertainties, emphasizing the conceptual nature of exploration potential at this stage.
Strategic Positioning in a Growing Gold-Antimony District
Nagambie's extensive tenement holdings near other significant gold-antimony operations, including Fosterville and Costerfield, position it well within a prolific mineral district. The company’s Mining Licence over the Nagambie Mine discovery provides a clear pathway toward development, underscoring the project's strategic importance amid rising global demand for antimony, a critical metal for various industrial and defense applications.
Bottom Line?
Nagambie’s drilling restart and enhanced economic disclosures set the stage for resource growth and project validation in a proven gold-antimony district.
Questions in the middle?
- Will upcoming drill results confirm the continuity and grade of the C4 lode?
- How will metallurgical testwork on Nagambie core compare to Costerfield’s recoveries?
- What timeline does Nagambie envisage for updating the JORC Inferred Resource?