Nagambie Project (Victoria)

Nagambie Mining Ltd (ASX code: NAG):

Location:

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

Target size:

0.1 to 1 million ounces at 1 to 2 g/t gold

Exploration History:

Large open pit worked in the 1990s with near mine drilling.  Virtually no modern exploration outside the Mining Lease prior to Nagambie’s involvement.

Soil sampling on regional and prospect scale

AirCore drilling to basement

Exploration Tools:

Soil sampling, AirCore drilling

Significant Outcomes:

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

Potential:

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

Status:

Continuing exploration.