Nagambie Resources has reported high-grade gold and antimony assays from Alkane’s drilling at the Nagambie Mine, including a 115-metre down-dip extension of the C2W lode. The exploration upside is matched by a more immediate funding constraint, with $180,000 in cash and estimated funding of less than one quarter.
- 24g/t gold and 30.9% antimony peak assays from three holes
- C2W lode extended 115 metres down-dip, with mineralisation still open
- 71% of Alkane’s drilled metres remained unassayed at quarter-end
- 20 million shares issued to OrcaDrill for $248,000 of drilling services
- $180,000 cash balance and estimated 0.8 quarters of funding
Alkane extends the C2W lode at depth
The most consequential result in Nagambie Resources Limited’s (ASX:NAG) September quarter report is not a new resource estimate, but the continued expansion of the mineralised system beneath the historic West Pit. Alkane Resources Limited (ASX:ALK) reported a 115-metre down-dip extension of the C2W lode in hole ADD013, with an individual assay of 30.9% antimony and a reported vertical lode extent of more than 250 metres.
The three holes assayed during the quarter also delivered a peak gold result of 24 grams per tonne in the C3 vein. Better intersections included 17.0g/t gold and 5.9% antimony over 1.25 metres in ADD001, 12.6g/t gold over 0.36 metres in ADD006, and 2.1g/t gold with 17.3% antimony over 0.39 metres in ADD013. These are narrow, high-grade intersections rather than broad economic widths, and the company has not declared a new mineral resource or mine plan.
The latest results add detail to the 115-metre C2W extension, which earlier coverage reported as lying outside the existing Inferred Resource. Nagambie says the broader C-Vein system remains open at depth and along strike, with the sedimentary sequence’s changing sandstone, shale and siltstone units influencing where veining and alteration occur.
Most of Alkane’s drilling is still awaiting assays
Alkane drilled 5,937 metres during the quarter, taking its total to 6,464 metres since work began. Only three holes, totalling 1,868 metres, had been logged, sampled and assayed by 30 September. That leaves approximately 71% of the drilled metres awaiting results, giving the December quarter a potentially heavier flow of assay news.
The work sits inside the earn-in joint venture that commenced in April. Alkane can earn a 60% interest by solely funding A$12.5 million within three years, or increase that interest to 80% by funding a total of A$27.5 million within five years. The arrangement also provides access to Alkane’s Costerfield processing plant and related workforce and equipment, although the exploration results reported so far remain conceptual in development terms.
Whroo and Wandean drilling adds a second exploration front
Nagambie is retaining full ownership of its Whroo and Wandean projects and plans to begin drilling its priority targets there. After quarter-end, it issued 20 million shares to OrcaDrill at 1.24 cents each for $248,000 of diamond drilling services, preserving that amount of cash for a company with limited liquidity.
The financing decision matters because Nagambie ended September with $180,000 in available cash after operating and investing outflows of $234,000 during the quarter. Its Appendix 5B estimated just 0.8 quarters of funding available, with no unused finance facilities. The board said it expects to continue as a going concern and believes it can raise capital when required, while also pointing to higher rental income as a prospective inflow.
Rehabilitation liability and toll plant remain unresolved
Resources Victoria is reassessing the rehabilitation liability for the Nagambie mining licence, against a current bond of $500,000. The report does not state the likely outcome of that recalculation. Separately, the proposed 300,000-tonne-per-year oxide-gold toll treatment plant remains dependent on Golden Camel Mining securing the funding required for construction and commissioning.
That leaves Nagambie with an attractive exploration narrative but a narrow financial buffer. The immediate test is whether Alkane’s unreleased assays support continuity and scale, while Nagambie must fund its own drilling program without allowing the cash position to become the dominant story.
Bottom Line?
The next assay batch could sharpen the mine-scale case, but Nagambie’s 0.8-quarter funding estimate makes capital access an equally important near-term catalyst.
Questions in the middle?
- Will the remaining 71% of Alkane’s drilled metres confirm continuity beyond the reported high-grade intersections?
- Can Nagambie advance Whroo and Wandean drilling without another cash-consuming equity raise?
- What rehabilitation liability will Resources Victoria ultimately assign to MIN5412, and how could that affect funding needs?