Nagambie Faces Funding and Resource Expansion Challenges Despite High-Grade Gains

Resource Update Reflects Market Dynamics

Nagambie Resources has released its quarterly report for the period ending 31 December 2024, highlighting a significant update to its antimony-gold Mineral Resource Estimate (MRE) at the 100%-owned Nagambie Mine in Victoria. The updated JORC Inferred Resource, announced in November 2024, now stands at 539,000 tonnes with average grades of 3.3 g/t gold and 3.9% antimony. This equates to in-the-ground contents of approximately 58,000 ounces of gold and 20,800 tonnes of antimony.

The recalculation of the resource was influenced heavily by the recent surge in gold prices, prompting a lower cut-off grade of 4.0 g/t AuEq to be applied. The gold-equivalent grade averages 18.6 g/t AuEq, or 0.6 ounces per tonne, with antimony accounting for roughly 82% of this value. This positions Nagambie’s deposit as potentially the highest-grade antimony mineralisation in Australia, a notable distinction in a market where antimony supply is tightening.

Market Forces Driving Value

The quarter saw a remarkable 54% increase in the western world antimony price, climbing from A$40,827 to A$62,747 per tonne. This price escalation is attributed to rising demand for antimony in military applications and solar energy technologies, compounded by supply constraints from deepening mines and Chinese export restrictions to the US and Europe. Nagambie Resources’ timing in updating its resource estimate amid these market dynamics could enhance its strategic positioning.

Diamond drilling recommenced in November 2024, targeting the high-grade gold-antimony orebody with the objective of expanding and upgrading the current resource. Early core samples have been sent to laboratories, and initial assay results are anticipated shortly. The company’s leadership is optimistic that this drilling phase could act as a catalyst for share price improvement, particularly given the company’s market capitalisation of less than $20 million, which they consider undervalued relative to the resource potential.

Operational and Environmental Initiatives

Beyond resource development, Nagambie Resources is advancing operational infrastructure through a joint venture with Golden Camel Mining Pty Ltd to construct a 300,000 tonnes per annum toll treatment plant at the Nagambie Mine. Golden Camel is managing the project and seeking funding to cover construction and commissioning costs, with revenue and operating costs to be shared equally post-commissioning.

In environmental management, the company has successfully trialed storing Potential Acid Sulfate Soil (PASS) material under water in the West Pit at Nagambie Mine, sourced from the North East Link Project. This trial demonstrated the site’s unique suitability as the only Victorian facility capable of such PASS storage, potentially opening avenues for longer-term environmental management contracts.

Strategic Portfolio and Financial Position

During the quarter, Nagambie sold its remaining 30% interest in the non-core Redcastle tenements, focusing its efforts on the core Whroo antimony-gold tenements. The company’s tenement portfolio now covers 914.5 square kilometres within the Melbourne Structural Zone, a region known for mineral potential.

Financially, Nagambie Resources reported cash holdings of $837,000 at the end of December 2024. Related party payments were limited to secretarial, legal fees, and directors’ fees for retiring directors, reflecting prudent corporate governance.

Looking Ahead

With ongoing drilling, a rising antimony price environment, and promising environmental management initiatives, Nagambie Resources is positioning itself for a potentially transformative phase. The company’s ability to convert its inferred resource into a mineable reserve and secure funding for infrastructure will be critical to unlocking shareholder value.