Nagambie Resources announces 110% rise in gold-equivalent ounces

Nagambie Resources Limited, a leading Australian mining company, has revealed a significant increase in its gold-antimony reserves, marking a major milestone for the company. The latest Joint Ore Reserves Committee (JORC) Inferred Resource update shows an extraordinary 110% rise in gold equivalent (AuEq) ounces, now standing at 322,000 ounces. This update, coupled with a 61% increase in average grade to 18.6 grams per tonne (g/t) AuEq, places the Nagambie Mine in Victoria among the highest-grade deposits in the country. Kevin Perrin, the company’s Non-Executive Chairman, emphasized the groundbreaking nature of these results. Speaking indirectly, Perrin indicated that the updated resource figures underscore the mine’s untapped potential. He also hinted at the undervaluation of Nagambie Resources’ shares, noting that the significantly improved resource profile could boost market confidence.

The updated estimates, released on 15 November 2024, reflect the company’s strategic advantage amid soaring commodity prices. With gold prices reaching AUD 4,167 per ounce and antimony surging to AUD 52,856 per tonne, the financial prospects for the Nagambie Mine look brighter than ever. Antimony, a critical mineral for military technologies and renewable energy applications, now constitutes a significant portion of the resource value. This upward revision is a result of recalibrated resource modeling and commodity price adjustments. The company’s CEO, James Earle, stated indirectly that the focus on high-grade zones has amplified the economic feasibility of the Nagambie Mine. Earle also confirmed that a follow-up drilling program, scheduled to begin this month, will prioritize expanding known mineralization zones.

The Nagambie Mine’s resource now features an average AuEq grade of 18.6 g/t, with antimony contributing 82% of the total resource value. The deposit’s structure and composition bear striking similarities to the nearby Costerfield Mine, which has been a benchmark for narrow-vein, high-grade mining operations in Victoria. This geological alignment is expected to drive confidence in Nagambie’s potential for sustained growth. Mining consultant Adam Jones, who spearheaded the independent resource estimation, highlighted the continuity of the mineralization and the robust geological model underpinning the resource. Jones noted that the high-grade veins at Nagambie could extend to greater depths, mirroring trends observed at Costerfield.

Nagambie Resources plans to commence drilling at the western extension of the N1 lode, a promising zone yet to be fully explored. This program aims to test the depth and lateral potential of the veins, which could significantly increase the resource base. James Earle conveyed optimism about the drill program’s ability to enhance resource confidence and expand the mine’s footprint.

Antimony’s growing role in critical industries, such as renewable energy and military applications, has made it a lucrative commodity for miners. Nagambie Resources is well-positioned to capitalize on this trend, with antimony contributing a major portion of the updated resource. The company anticipates that its metallurgical treatment processes, modeled on the successful operations at the Costerfield Mine, will enable efficient recovery of both gold and antimony.