Nagambie Project (Victoria)

Taking soil samples at Nagambie South

Nagambie Resources Ltd (ASX code: NAG):

Location:

Surrounding Nagambie in central Victoria

Regional Geological Setting:

Siluro-Devonian aged sediments have been faulted and folded by regional south directed thrusting

Target Metals:

Gold

Mineralisation setting:

Folds developed in foot-walls and hanging-walls of reverse faults (wide zones of north-dipping shearing) leading to the development of planar and stockwork quartz veins within the fold axes, and in the E-W striking, north-dipping shear zones.  Gold also occurs as disseminations within favoured sandstone units, in association with arsenopyrite and stibnite.

Target size:

0.1 to 1 million ounces at 1 to 2 g/t gold,  Deeper, higher grade deposits may be present.

Exploration History:

Large open pit worked in the 1990s with near mine drilling.  Little modern exploration outside the Mining Lease prior to Nagambie’s involvement.

Soil sampling on regional and prospect scale

AirCore drilling to basement and RC drilling of soil anomalies

Exploration Tools:

Aeromagnetic interpretation to delineate near-surface East-West structures

Gravity interpretation to delineate deep crustal structures

Soil sampling, Induced Polarisation (IP) geophysics

AirCore drilling, RC drilling

Significant Outcomes:

Soil sampling has generated targets for testing by AirCore drilling.  One target (Nagambie North/Racecourse Road) shows significant AirCore anomaly in basement rocks with strike in excess of 2.3 km

Wandean mineralisation – Strong gold intersections to 20 gm/t at shallow depths (<10 metres) and long runs of intersections with gold grades exceeding 1 gm/tonne in RC drilling to 60 metres depth.

IP programs show anomalous chargeability zones below mineralised intersections at Wandean, demonstrating the feasibility of this tool for detailed exploration.

Potential:

3 to 5 small scale open pits of +100,000 ounces in ground suitable for heap leach operations

Potential for higher grade deposits at depth

Status:

Continuing exploration.

See ASX announcements, ASX code NAG, and www.nagambieresources.com.au