Nagambie Mining (ASX: NAG) has been granted EL 5430 by the Victorian Department of Primary Industries (DPI).
The company's focus is on the evaluation and development of shallow open cut gold deposits in Victoria.
EL 5430 covers prospective ground to the north west, north east and east of the Nagambie Mine.
The Longwood, Wandean and Bunganail East Prospects, within ELA 5430, in addition to Nagambie South and Nagambie North, are all considered to fit the company's new gold model.
Work is planned to commence as soon EL 5430 is granted.
The medium term objective for Nagambie Mining is to produce 10,000 ounces of gold per year at an operating cost of around A$700 per ounce with a projected mine life of at least 10 years.
The company is evaluating and developing 100%-owned oxide gold prospects on and within economic trucking distance of the Nagambie Mine, targeting a minimum of 100,000 to 200,000 ounces in total of heap-leachable gold mineralisation.
Heap leach operations can be developed relatively quickly and are much lower cost than conventional gold treatment operations, both in terms of total capital cost and operating cost per tonne.
The recommencement of heap leach operations at the Nagambie Mine will benefit from the proven technology and successful operations history at the Mine in the 1990s.
The Nagambie Mine was operated in the 1990s by Perseverance Mining Pty Ltd, the average head grade of the 184,000 ounces of gold ore stacked on the heap leach pad was approximately 0.8 g/t gold.
Drilling at the Wandean Prospect and soil sampling at the Bunganail East and Longwood Prospects will commence as soon as the necessary program approvals are in place.
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