Nagambie Resources increases mineable antimony-gold intersections further at namesake project
Freehold ownership locks-in surface access for Southern Cross Gold at Sunday Creek.
The number of mineable antimony-gold intersections has increased again at Nagambie Resources’ (ASX: NAG) namesake project in Victoria, with latest assays revealing the highest-grade antimony intercept to-date.
Nagambie previously operated in the 1990s as a heap leach gold operation and retains a mining licence.
Latest assays are from four holes drilled at the project and have boosted the mineable intersections from 18 to 22.
Results were 1.2m EHT (estimated horizontal thickness) at 27.9 grams per tonne gold equivalent; 1.2m EHT at 25.7g/t gold equivalent; 1.2m at 22g/t gold equivalent; and 1.2m EHT at 10.9g/t gold equivalent.
These intersections came from the C1 and C2 vein systems and have been reported to allow for potential mining dilution.
‘Significant’ Victorian discovery
Nagambie executive chair Mike Trumbull said the intersection grading 27.9g/t gold equivalent was “particularly pleasing” because it was the deepest one to-date at the program at about 230m below surface.
“Within this intersection was a sample assaying 60.8% antimony – the highest antimony assay to-date at the Nagambie mine.”
“Averaging circa 6% antimony plus 5g/t gold from 22 mineable intersections in 13 holes out of 17 holes assays to-date is a remarkable hit rate – given that it has come from one drill rig, five day shifts per week, commencing in the June quarter 2022.”
Mr Trumbull added Nagambie was emerging as a “very significant” Victorian discovery – noting the 6% antimony grade was an “exciting” comparison to TSX-listed Mandalay Resources’ Costerfield operation, which is only 45km away.
Rights issue to fund exploration
Mr Trumbull said in the coming months, the company planned to drill test the C1 and C2 veins to 400m depths.
Drilling will also test the C3 and C4 systems, which lie to the south west of the West pit.
To fund its ongoing exploration at Nagambie, the company announced a one-for-five shareholder renounceable rights issue earlier this month.
The rights issue aims to raise up to $5.4 million and enable Nagambie to secure a second rig for its drilling program.
It will also help accelerate engineering and permitting activities, along with metallurgical test work and flow sheet designs.