Nagambie Resources Sees Gold-Equivalent Figures Surge Amid Rising Antimony Prices
NAG (NAG) Share Update July 2024 Monday 29th
Nagambie Resources Announces Significant Increase in Gold-Equivalent Figures Due to Rising Antimony Prices
Nagambie Resources Limited (ASX: NAG) has announced a substantial increase in its gold-equivalent (AuEq) figures, driven by a significant rise in antimony prices throughout 2024. The company revealed that its AuEq figures have surged by 45%, reflecting the higher market prices for both antimony and gold.
Instant Summary:
- Antimony prices have doubled in 2024, increasing by 110%.
- Gold prices have risen by 24% in 2024.
- Nagambie Mine's gold-equivalent figures are up by 45%, now at 223,000 oz AuEq at 16.7 g/t AuEq.
- The primary Maiden JORC Resource figures remain unchanged.
- The Nagambie Mine contains the highest-grade antimony mineralization in Australia.
Market Dynamics and Resource Update
Nagambie Resources Limited has reported a dramatic increase in its gold-equivalent (AuEq) figures, a result of the soaring prices of antimony and gold in 2024. The company’s high-grade gold-antimony orebody at the Nagambie Mine is particularly sensitive to the price of antimony, which has seen a 110% increase this year. Gold prices have also risen by 24% during the same period.
As a result, the AuEq figures for the multi-commodity mineralization at the Nagambie Mine have increased by 45%, now standing at 223,000 ounces at a grade of 16.7 g/t AuEq. This is a significant rise from the previously reported 153,000 ounces at 11.5 g/t AuEq. These figures are based on current market prices of US$2,363 per ounce for gold and US$23,150 per tonne for antimony.
Resource Details and Future Projections
The primary Maiden JORC Resource figures, announced on 20 May 2024, remain unchanged at 415,000 tonnes averaging 3.6 g/t Au and 4.3% Sb, translating to in-ground metal content of 47,800 ounces of gold and 17,800 tonnes of antimony. These figures will only change with further resource drilling and updated calculations as per the JORC (2012) Code.
The Nagambie Mine’s high-grade mineralization is notable for its gold-equivalent grade of 16.7 g/t AuEq, which is 3.3 times the mineable cut-off grade of 5.0 g/t AuEq. This indicates a high-margin mineralization, making the Nagambie Mine a significant player in the Australian mining sector.
Market Trends and Antimony Demand
The surge in antimony prices is attributed to growing demand and declining supply globally. Increased use in energy-efficient solar panel glass and high-technology military equipment has driven demand, while declining grades and depleting resources in existing mines have constrained supply. Exploration for new deposits is challenging, as conventional geophysical techniques are not effective for antimony.
Graph 1 in the announcement illustrates the sustained rise in antimony prices throughout 2024, showcasing the market dynamics that have benefited Nagambie Resources.
The significant increase in gold-equivalent figures due to rising antimony prices is a positive development for Nagambie Resources. This increase enhances the value of the company's mineral resources and could lead to a higher stock valuation. Investors may view this as a strong indicator of the company's potential profitability, especially given the high-margin mineralization at the Nagambie Mine.
Investor Reaction:
Analysts have reacted positively to the announcement, noting that the substantial rise in antimony prices has significantly boosted Nagambie Resources' gold-equivalent figures. Investors are optimistic about the company's future prospects, given the high-grade mineralization and the potential for further resource expansion.
Conclusion:
Investors should keep a close watch on Nagambie Resources as the company continues to benefit from favorable market conditions. The significant increase in gold-equivalent figures underscores the potential for high returns. Investors are encouraged to monitor further announcements and consider the long-term growth potential of Nagambie Resources.