Nagambie drilling has extended a known gold-antimony zone by 115 metres below its previously identified extent, Alkane Resources said in its October 20, 2026 announcement. The initial exploration results support continuity of mineralisation at the Victorian property, where Alkane is evaluating whether to proceed with an earn-in that could ultimately give it an 80% interest.
Key Takeaways
- Three diamond drill holes totaling 1,868 metres tested the mineralised system beneath the historic West Pit.
- Results included narrow, high-grade intervals and broader mineralised zones outside the existing inferred resource.
- Alkane’s initial option period runs until April 2027; earning 60% requires $12.5 million of expenditure over three years.
Table of Contents
- Nagambie drilling tests depth and wider mineralisation
- Potential ore source for Costerfield, not a development decision
- Earn-in decision remains ahead
- Conclusion
Nagambie drilling tests depth and wider mineralisation
Drilling began in June 2026, targeting north-south-trending veins beneath the historic workings. Alkane’s Nagambie exploration announcement identifies the C2 intersection as extending mineralisation 115 metres below its previously known limit, leaving scope for further drilling at depth.
In the C3 zone, hole ADD001 returned 10.6 metres grading 3.3 grams per tonne of gold and 0.7% antimony from a downhole depth of 156.3 metres. Its estimated true width was 10.4 metres. Within that interval, a 1.3-metre section graded 17.0 grams per tonne of gold and 5.9% antimony, with an estimated true width of 1.2 metres.
The program also intersected broader mineralisation beyond the previously identified lodes. One interval in ADD001 measured 42 metres downhole, or an estimated true width of 32.2 metres. Downhole lengths and estimated true widths are distinct measurements, an important distinction when comparing the scale of the intersections.
| Item | Details |
|---|---|
| C2W — ADD001 | 9.7 metres at 1.2 g/t gold and 2.5% antimony from 306.3 metres; estimated true width 4.9 metres. |
| C2W — ADD006 | 10 metres at 2.1 g/t gold and 0.5% antimony from 221.7 metres; estimated true width 6.4 metres. |
| C2W — ADD013 | 22.6 metres at 0.6 g/t gold and 0.8% antimony from 592.59 metres; estimated true width 20.7 metres. |
| New domain — ADD001 | 42 metres at 1.8 g/t gold and 0.2% antimony from 214.88 metres; estimated true width 32.2 metres. |
Potential ore source for Costerfield, not a development decision
Managing Director and Chief Executive Nic Earner said the results fit Alkane’s strategy of expanding potential ore sources and extending the life of its wholly owned Costerfield operation. He described Nagambie as showing similarities to Costerfield’s gold-antimony system, while stressing that further work remains.
The new intersections are exploration results, not an updated mineral resource or a commitment to mine. The November 2024 inferred resource estimate covered 539,000 tonnes grading 3.3 grams per tonne of gold and 3.9% antimony, containing approximately 58,000 ounces of gold and 20,800 tonnes of antimony.
Commercial processing also remains unproven. The announcement’s competent person considers that saleable concentrates may be possible, but that view has not yet been substantiated by metallurgical testing and remains subject to future metallurgical and market studies.
Earn-in decision remains ahead
Nagambie Resources retains ownership while Alkane undertakes the earn-in work. Alkane can earn a 60% interest by funding at least $12.5 million in exploration, evaluation and related studies within three years of commencement.
The agreement includes a 12-month option period ending in April 2027, during which Alkane can withdraw. After earning 60%, it may fund a further $15 million to increase its interest to 80%. An unincorporated joint venture would then be formed following the earn-in period, with Alkane as operator.
Two diamond drill rigs continue to explore the West Pit and surrounding areas, testing the geological framework and possible extensions as Alkane advances toward the initial option decision.
Conclusion
The next confirmed milestone is Alkane’s initial earn-in decision point in April 2027. Ongoing drilling will inform its assessment of Nagambie’s extensions and potential role alongside Costerfield.
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