Alkane Resources has extended the known gold-antimony system beneath Nagambie’s West Pit, with drilling identifying mineralisation outside the existing Inferred Resource. The results strengthen the exploration case, but do not yet change the resource estimate or establish an economic mine plan.
- C2 mineralisation intersected 115 metres below its previously known extent
- Three diamond holes covered 1,868 metres beneath the West Pit
- Nagambie reported peak assays of 24g/t gold and 30.9% antimony
- Broad mineralised zones reached an estimated true width of 32.2 metres
- Alkane’s initial 12-month earn-in option runs to April 2027
Drilling pushes Nagambie mineralisation deeper
Alkane Resources (ASX:ALK) has found what may be the most consequential feature of its first Nagambie drilling campaign: the C2 zone continues at least 115 metres below the previously known mineralised extent. Three diamond holes totalling 1,868 metres tested the ground beneath the historic West Pit, confirming gold-antimony mineralisation across the C2 and C3 vein systems while also opening up zones outside Nagambie Resources’ 2024 Inferred Mineral Resource.
Nagambie Resources (ASX:NAG) said the broader announcement included peak assay values of 24 grams per tonne gold and 30.9% antimony. In the detailed results, the standout reported intersection was 3.3g/t gold and 0.7% antimony over an estimated true width of 10.4 metres in hole ADD001, including 17.0g/t gold and 5.9% antimony over 1.2 metres in the C3 zone.
Wide zones sit alongside narrow high grades
The drilling points to a system with two distinct styles of mineralisation. ADD001 returned 1.8g/t gold and 0.2% antimony over an estimated true width of 32.2 metres in a new domain, while ADD006 intersected 2.2g/t gold over 15.5 metres in the C1 zone. Those wider intervals sit alongside narrower, higher-grade structures, including 4.6g/t gold and 20.6% antimony over 0.2 metres in the C2W zone.
At depth, ADD013 returned 0.6g/t gold and 0.8% antimony over an estimated true width of 20.7 metres in C2W, including 2.1g/t gold and 17.3% antimony over 0.3 metres. Alkane has interpreted that intercept as supporting a vertical lode extent of more than 250 metres, although the reported results remain exploration intersections rather than an updated resource.
Earn-in gives Alkane the exploration burden
The results arrive under the earn-in joint venture, under which Alkane is sole-funding exploration and evaluation at Nagambie. Shareholders previously approved the transaction, which gives Alkane a path to earn 60% by spending A$12.5 million and up to 80% through total expenditure of A$27.5 million. The initial 12-month option period allows Alkane to withdraw by April 2027, making the continuing drilling program relevant not only to the geology but also to the ownership outcome.
Existing resource remains the benchmark
Nagambie’s current Inferred Resource stands at 539,000 tonnes grading 3.9% antimony and 3.3g/t gold, containing about 20,800 tonnes of antimony and 58,000 ounces of gold. Alkane’s results extend beyond parts of that estimate and suggest additional mineralised domains, but they have not yet been converted into a revised JORC resource, mine plan or economic study. The company also said potential concentrate production remains unsubstantiated by metallurgical test work and future market and processing studies.
Two rigs continue toward the April decision point
Two diamond rigs remain active around the West Pit, with Alkane targeting extensions to the C-series lodes and additional north-south structures. The geological case is improving on the evidence reported so far, particularly at depth, but the next test is whether further drilling can demonstrate continuity at a scale that supports resource growth and eventual mine planning. Until then, April 2027 remains the key commercial checkpoint: Alkane must decide whether the exploration potential justifies continuing its earn-in.
Bottom Line?
The drilling has expanded the geological footprint, but the investment case now depends on continuity, metallurgy and Alkane’s April 2027 earn-in decision rather than isolated high-grade assays.
Questions in the middle?
- Will follow-up drilling convert the newly identified zones outside the 2024 Inferred Resource into a materially larger estimate?
- Can metallurgical work demonstrate commercially saleable gold-antimony concentrates at Nagambie rather than relying on the Costerfield analogue?
- Will Alkane commit beyond its initial option period and continue funding the project toward a formal development study?