Redcastle Project (Central Victoria)

Costean mapping and sampling

Nagambie Mining Ltd (ASX code: NAG):

Location:

45 km east of Bendigo in central Victoria

Regional Geological Setting:

Folded Devonian aged sediments have subsequently suffered regional south directed reverse faulting

Target Metals:

Gold

Mineralisation setting:

Folds disrupted by faults, both oblique and parallel to fold axes leading to the development of planar and stockwork quartz reefs.  Gold also occurs as disseminations within favoured sandstone units, in association with arsenopyrite

Target size:

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

Exploration History:

Historic workings with minor production from high grade reefs.  Some cursory drilling in the past by small companies

Exploration Tools:

Trench mapping and sampling, structural mapping and interpretation prior to RC drilling

Significant Outcomes:

Identification of 3 structural domains across the goldfield, each with individual gold mineralisation style.  Recognition of parallel-oblique structural settings as faults cross anticlines

Potential:

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

Status:

Continuing exploration.