Nagambie Resources Limited: Major Update on Gold-Antimony JORC Resource
NAGAMBIE RESOURCES LIMITED (NAG) Share Update November 2024 Friday 15th
Nagambie Resources Announces Significant JORC Resource Update
Nagambie Resources Limited (ASX: NAG) has released an updated JORC Inferred Resource for its high-grade gold-antimony deposit, showcasing a substantial increase in estimated resources.
Instant Summary:
- 110% increase in gold equivalent resources to 322,000 oz AuEq.
- 61% increase in average grade to 18.6 g/t AuEq.
- Follow-up drilling program set to commence shortly.
- Significant increase in resource size due to higher commodity prices.
Resource Update Details
Nagambie Resources Limited has announced a major update to its JORC Inferred Resource for the Nagambie Mine. The updated figures show a 110% increase in gold equivalent ounces, now totaling 322,000 oz AuEq, with an average grade of 18.6 g/t AuEq, a 61% increase from previous estimates.
This update reflects changes in the cut-off grade and higher commodity prices, particularly for antimony. The updated resource figures are based on a lower cut-off grade of 4.0 g/t AuEq, down from 5.0 g/t AuEq, which has allowed for a significant increase in the estimated resource size.
Commodity Price Impact
The increase in resource size is largely attributed to the higher prices of gold and antimony. As of 31 October 2024, gold prices were at A$4,167 per ounce, and antimony prices reached A$52,856 per tonne. These near-record prices have greatly enhanced the economic viability of the Nagambie Mine's resources.
Future Exploration Plans
Nagambie Resources plans to commence a follow-up drilling program to further explore the western end of the N1 lode. This area has shown good geological continuity and presents a large un-estimated potential. The company aims to increase the resource size further with additional infill and extensional drilling.
The updated resource figures significantly enhance the economic prospects of the Nagambie Mine. The 110% increase in gold equivalent resources is likely to positively influence the company's stock price, as it reflects a substantial improvement in asset value. The high average grade of 18.6 g/t AuEq is also very attractive by industry standards.
Investor Reaction:
Analysts are likely to view this update favorably, given the substantial increase in resources and the current high commodity prices. The planned follow-up drilling program could further boost investor confidence if additional resources are identified.
Conclusion:
Investors should consider the potential for further resource increases as Nagambie Resources continues its exploration efforts. The company's strategic focus on high-grade gold-antimony deposits positions it well to capitalize on current market conditions.