Nagambie (ASX:NAG) ascends on maiden Victorian gold-antimony resource

Nagambie Resources has booked a much anticipated resource at its namesake project and unfurled 415,000 tonnes at 3.6 grams per tonne gold and 4.23 per cent antimony from northern Victoria.

Maiden in-ground metals of 47,800 ounces of gold and 17,800t of antimony represent 153,000oz of gold-equivalent, with an average 11.5g/t equivalent resource grade sitting 230 per cent above the mineable 5g/t cutoff.

The four shallow lode systems which comprise the maiden resource remain open at depth within Nagambie’s territory and mining licence, and the company is confident continued drilling can increase both its size and quality.

Nagambie Chairman Tom Quinn said the maiden resource was a watershed moment for the company.

“It comes in the context of recent all-time record-high gold prices and strong prices for antimony, an essential metal for military uses and high-performance solar panel manufacture,” Quinn said.

“We are now focused on being able to commence the recommended follow-up drilling program, with our target being to significantly increase the maiden resource.”

The resource has been a long time coming since a 12.3% antimony and 7.2g/t gold intercept from an old 134,000oz-gold open pit operation spurred a public listing.

But it is now on the books, with Nagambie now looking to keep up the momentum towards becoming a second Victorian gold-antimony producer 45 kilometres east of the operating Costerfield mine.

Nagambie believes the in-ground metals could exceed 1000oz gold-equivalent a vertical metre, and that an in-place licence over the old mine offers a real path to development in a state with historically difficult land access.

Victoria is known to host high-grade deposits, with highly profitable operations from an old mine at Fosterville the current gold standard.

But for Nagambie, antimony could be the greater prize, particularly considering the company’s belief the mine could host one of the world’s highest grade deposits of the in-demand alloy-maker.

And while China leads the way in production, there are no new assets coming online and the Red Dragon’s remaining reserves are believed to be depleting rapidly.

The metalloid is on all the critical minerals lists that matter, and maybe most importantly Australia’s given it opens up projects for funding through the Australian Government’s Critical Minerals Strategy.

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