Nagambie Mining (ASX:NAG) should trade higher after a new gold discovery at Wandean, 9 kilometres north west of the Nagambie Mine in Victoria.
Wandean is now shown to host continuous gold mineralisation grading better than the target average grade of 1 g/t gold for economic heap leach treatment at the Nagambie Mine, and mineralisation remains open to the east.
Some of the better oxide intersections for the latest exploration drilling program at Wandean are 5 metres at 11.4 g/t gold from 53 metres including 3 metres at 18.7 g/t and 1 metre at 37.8 g/t; and 13 metres at 1.74 g/t from 20 metres including 4 metres at 3.3 g/t.
The 37.8 g/t gold intersected is the highest gold grade to date for Wandean and more than double the best oxide gold assay recorded at the Nagambie Mine in the 1990s of 16.3 g/t gold.
Gold mineralisation is closely associated with subvertical zones of silicified mudstones and sandstones in the saprolite weathered zone.
Encouraging preliminary gold leach results augur well for Wandean heap leach gold recovery, and NAG now has two open-pit, heap-leachable gold discoveries, Apollo and Wandean, to progress to production.
There is clear potential for more discoveries to be made in the Nagambie and Clonbinane Goldfields.
NAG is focussed on the discovery and development of shallow, open-pit and heap- leachable gold deposits, and controls 100% of tenements encompassing historic Victorian goldfields at Nagambie, Clonbinane, Redcastle and Rushworth.
The company is also pursuing construction material and landfill opportunities at the Nagambie Mine site in order to maximise the value of the freehold land owned.
NAG is targeting a total operating cost for Wandean including trucking the oxide gold mineralisation to the Nagambie Mine, 9 kilometres to the south east for heap leach treatment of A$900 per ounce of gold or less.
The company is targeting a total operating cost for Apollo including trucking the oxide mineralisation to the Nagambie Mine, 60 kilometres to the north via the Hume and Goulburn Valley Freeways, for heap leach treatment of A$600 per ounce of gold or less.
With the gold price trading in the general range of A$1,350 to A$1,550 per ounce over the last year, Nagambie Mining is well positioned to move forward with both Wandean and Apollo.
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