Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has commenced diamond drilling at the Nagambie Antimony-Gold Project in Victoria, according to a market update from joint venture partner Nagambie Resources Ltd (ASX:NAG), marking the first on-ground exploration activity since the companies formalised an earn-in agreement over the highly prospective tenure earlier this year.
The drilling program is being carried out by Alkane subsidiary Mandalay Resources Costerfield Operations Pty Ltd and is targeting the antimony-gold discovery at the historic Nagambie Mine.
The work follows shareholder and regulatory approvals for the earn-in agreement between Alkane and Nagambie Resources, announced in April, covering Mining Licence MIN 5412 and Exploration Licence EL 5511.
Alkane has identified antimony as a strategic growth opportunity through its Victorian operations, which already include the producing Costerfield gold-antimony mine.
Drill rig drilling east from the west end of the West Pit (3 June 2026). Source: Nagambie Resources.
Resource growth in focus
The initial drilling campaign is aimed at expanding the existing JORC Inferred Resource at Nagambie, which currently stands at 539,000 tonnes grading 3.9% antimony and 3.3 g/t gold.
That resource contains an estimated 20,800 tonnes of antimony and 58,000 ounces of gold.
Nagambie chairman Kevin Perrin said the start of drilling represented an important milestone for the project and highlighted Alkane's plans to grow the existing resource base.
“Alkane’s extensive diamond drilling program is targeting a significant increase to Nagambie’s JORC Inferred Resource for the deposit,” he said.
The project sits within one of Australia's most established antimony districts, close to Alkane's Costerfield operation and the Fosterville gold mine in central Victoria.
“We are very encouraged to see work now under way and look forward to working closely with Alkane during the earn-in period as we seek to unlock increased value for our shareholders,” Perrin said.
Building Alkane's antimony exposure
The Nagambie joint venture gives Alkane another avenue to expand its exposure to antimony, a critical mineral used in defence applications, semiconductors, batteries and flame retardants.
Global interest in antimony projects has intensified over the past two years following Chinese export restrictions and growing efforts by Western governments to secure alternative sources of the critical mineral.
Under the earn-in arrangement, Alkane can progressively increase its interest in the project through exploration expenditure and development milestones, while providing Nagambie with regular updates on exploration activities and drilling results.
Nagambie said Alkane will provide quarterly exploration reports and notify its partner of any material drilling results or exploration developments requiring market disclosure.
The commencement of drilling comes as Alkane continues to build momentum across its broader portfolio. The company, which joined the S&P/ASX 200 earlier this year, recently reported record quarterly profit and production figures from its expanded three-mine portfolio spanning Tomingley, Costerfield and Björkdal, benefiting from strong gold prices and growing cash reserves.
Results from the Nagambie drilling program are expected to provide the first indication of the project's potential to support a larger antimony-gold resource and further strengthen Alkane's position in Australia's emerging critical minerals sector.