Nagambie Resources Strikes Significant Antimony Discovery East of Current Resource
Nagambie Resources Limited (ASX: NAG) has announced a potentially game-changing discovery of antimony veining approximately 130 metres east of its current JORC resource, suggesting substantial resource expansion potential at its flagship project.
New Antimony Veining Discovery Extends Mineralisation Footprint by 36%
In a development that could significantly enhance the company's gold equivalent resource base, Nagambie has intersected visually significant stibnite (antimony sulphide) veining in diamond hole NAD056, located 130 metres east of the C1E Vein and 123 metres below surface.
The Nagambie Resources Ltd antimony discovery is particularly significant as it could potentially increase the west-to-east mineralisation footprint by 36% – from the current 360 metres to approximately 490 metres. This expansion would substantially increase gold equivalent ounces per vertical metre at the project.
Within a continuous downhole length of 2.58 metres, four mineralised intervals totalling 0.98 metres were observed:
- Two intervals of quartz breccia with stibnite infill
- Two intervals of high-grade stibnite veining, estimated at 90-95% stibnite
The discovery confirms Nagambie's structural model for the formation of north-south-striking stibnite veins, which show semi-regular spacing of approximately 100-150 metres between vein sets.
Understanding Stibnite: A Valuable Antimony Mineral
Stibnite (Sb₂S₃) is the primary ore mineral for antimony, a critical element with applications in flame retardants, lead-acid batteries, and as a hardening agent in alloys. The Nagambie deposit shows geological and mineralogical similarities to the nearby Costerfield Mine, where antimony-gold mineralisation has been successfully mined.
In antimony-gold deposits like Nagambie's, finely-disseminated gold often occurs within stibnite veins, as well as within pyrite and arsenopyrite. The combination of antimony and gold creates a valuable polymetallic resource, with antimony contributing significantly to the overall economic value.
Gold equivalent calculations for antimony-gold deposits typically use a conversion factor based on relative metal prices and recovery rates. Using current market prices (A$63,101/t for Sb and A$4,241/oz for Au) and conservative recovery estimates of 93%, Nagambie calculates an antimony-to-gold equivalent factor of 4.63.
Strategic Importance and Future Expansion Potential
Nagambie Chairman Kevin Perrin highlighted the strategic significance of this discovery:
"This discovery of stibnite veining at the eastern end of the West Pit is exciting for two reasons: first, our exploration team discovered the veins almost exactly where they predicted, and second, it provides greater confidence that more antimony-gold vein systems could be discovered at semi-regular spacings between vein sets of circa 125m west-to-east."
The Nagambie Resources Ltd antimony discovery opens up substantial exploration upside, with Nagambie targeting:
- Depth potential to 1,000 metres or more
- 1.5 km of mineralisation potential east of the West Pit
- 2.0 km of mineralisation potential west/southwest of the West Pit
Upcoming Catalysts and Development Path
While the company plans to first advance the near-surface high-grade mineralisation under the West Pit into production, this new discovery supports a much broader long-term growth strategy.
Diamond drilling continues at NAD056 with a target depth of 450 metres. The lode zone intersected also features a visual arsenopyrite sulphide halo, which is often associated with gold mineralisation. Laboratory assays from the drilling results are expected in late April 2025.
Detailed logging of NAD056 is continuing, along with detailed logging of previous holes. The company has implemented proper quality control procedures and sampling protocols, with samples being analysed for gold via fire assay and antimony via ICP methods.
Investment Perspective: Why Nagambie Stands Out
Nagambie Resources presents a compelling investment proposition for several key reasons:
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Resource Growth Potential: The new discovery could significantly expand the company's resource base both laterally and at depth, with a potential 36% increase in the mineralisation footprint.
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Critical Minerals Exposure: Antimony is classified as a critical mineral in many jurisdictions due to its importance in various industrial applications and limited global supply.
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Regular Vein Spacing Pattern: The semi-regular spacing of vein sets (approximately 100-150m apart) creates a predictable exploration model that could lead to multiple additional discoveries.
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Near-Term Production Focus: While exploring expansion potential, the company remains focused on bringing near-surface high-grade mineralisation into production.
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Geological Model Validation: The discovery validates the company's structural model, increasing confidence in future exploration targeting.
Nagambie's strategic location in a proven mining district, coupled with this significant Nagambie Resources Ltd antimony discovery east of its current resource, positions the company as an emerging player in the antimony-gold space with substantial upside potential as exploration continues.
Technical Details of the Discovery
The new antimony veining was discovered in diamond hole NAD056, which was drilled to investigate potential north-south-striking antimony veining under the eastern half of the historic West Pit. The hole is currently drilling along the northern flank of the east-west-striking Central Shear Zone.
The stibnite veining occurs within a lode zone from 158.35m to 160.93m downhole. Within this zone, four mineralised intervals were observed:
- 158.35-158.65m: 0.30m of quartz breccia with stibnite infill (estimated 10% stibnite)
- 159.80-160.10m: 0.30m of stibnite veining (estimated 95% stibnite)
- 160.15-160.30m: 0.15m of quartz breccia with stibnite infill (estimated 30% stibnite)
- 160.70-160.93m: 0.23m of stibnite veining (estimated 90% stibnite)
The company has noted that these are visual estimates, and laboratory assays are required for representative estimates of quantifiable elemental values. Furthermore, the assay results are expected to be received in late April 2025.
The Nagambie Resources Ltd antimony discovery is located approximately 130 metres east of the C1E Vein, which represents the eastern boundary of the current JORC Inferred Resource. This spacing is consistent with the company's structural model, which suggests semi-regular spacings between north-south-striking stibnite vein sets of approximately 100-150 metres.
In line with best practices for sustainable mining development, Nagambie Resources continues to implement responsible exploration techniques while advancing their promising antimony project.
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