- Nagambie Resources’ (NAG) TSX-listed joint venture partner Mawson Gold announces encouraging results from drilling at the Balaclava Hill mine in Victoria
- Mawson drilled two holes under the mine’s open pit which has reportedly returned the “best drill result” on the Whroo goldfield since hard rock mining began 167 years ago
- One hole intersected a 200-metre-wide zone of gold and antimony with grades of up to 49.7 g/t gold and 16.5 per cent antimony
- In light of the encouraging results, Nagambie has extended the closing date of applications for its share purchase plan by two weeks
- Nagambie shares are trading flat at 5 cents
Nagambie Resources’ (NAG) TSX-listed joint venture partner Mawson Gold has announced encouraging results from drilling at Balaclava Hill.
The Balaclava Hill mine lies within Nagambie’s Whroo Joint Venture property in the Whroo historical goldfield, Victoria.
Mawson drilled two diamond holes, totalling 903 metres, under the Balaclava Hill open pit and it was reportedly the deepest drilling to date across the entire Whroo goldfield.
The Whroo goldfield lies to the east of the Heathcote-Mt William Fault Zone, 35 kilometres northeast of the Costerfield gold-antimony mine and 40 kilometres east of the Fosterville gold mine.
Drill hole MDDBC001 intersected a broad, 200-metre-wide downhole zone of gold and antimony.
Results from this hole include 0.5 metres at 16.5 grams of gold per tonne (g/t) from 201.5 metres, 0.6 metres at 49.7 g/t gold from 324.9 metres and 0.2 metres at 0.2 g/t gold and 16.5 per cent antimony from 359.6 metres.
MDDBC002 was drilled 150 metres west of the first hole and intersected 0.7 metres at five g/t gold from 332.1 metres.
“Our drilling below one of the largest historic epizonal mines in Victoria, at Balaclava Hill, has produced the best drill result on the field since hard rock mining commenced 167 years ago,” Mawson Gold Executive Chair Michael Hudson said.
According to Mawson, the antimony sulphide intersections indicate that the target below Balaclava Hill is high-grade gold-stibnite, epizonal, Fosterville-style mineralisation.
The company is now comparing early Whroo intersections with data from the Costerfield mine which is a top five global producer of antimony.
Under the JV with Nagambie, Mawson Gold is earning up to a 60 or 70 per cent interest in the Whroo JV Property.
So far, it has spent $400,000 on exploration and paid NAG $100,000 for a zero per cent interest. To earn a 25 per cent interest, it will spend a further $500,000 on exploration and pay Nagambie another $50,000 in cash before December 2, 2022.
In light of the encouraging initial Balaclava Hill drilling results, Nagambie Resources has extended the closing date for applications for the share purchase plan (SPP) by two weeks from Thursday, February 24 to Thursday, March 10. The company also capped the SPP at $2 million.
Nagambie shares were trading flat at 5 cents at 2:59 pm AEDT.