Nagambie Resources Ltd (ASX:NAG) has updated the inferred mineral resource estimate (MRE) for its Nagambie Mine high-grade gold-antimony deposit in Victoria, reporting a 110% increase in gold equivalent (AuEq) in the ground.

The update was provided through a computer block model for the resource, and reflects increases in the gold price, a steep rise in the price of antimony, and a lower cut-off grade of 4 grams per tonne (g/t).

The estimate for AuEq is now 322,000 ounces (oz) AuEq at 18.6g/t AuEq,and this also reflects a 30% increase in overall ore tonnage, for 539,000 tonnes, and a 21% increase in gold in the ground, which now amounts to 58,000 oz Au.

The gold equivalent grade has also risen by 61%, to 18.6g/t AuEq, with the company noting that this is high by industry standards, and is 18% attributable to gold (3.3 g/t AuEq) and 82% attributable to antimony (15.3 g/t AuEq).

Nagambie has also predicted that further infill drilling could reveal an in-the-ground metal content averaging around 2,000 oz AuEq per vertical metre.

Chairman Kevin Perrin said that given the shallowness of this resource, the updated figures were particularly exciting.

“The standout changes are the 110% increase to 322,000 AuEq oz and the 61% increase to18.6 g/t AuEq average grade,” he said.

“The 18.6 g/t or 0.6 oz/t AuEq grade is very high by industry standards and exceeds the 4.0 g/t AuEq economic cut-off grade by 14.6 g/t AuEq or 78% of the grade.

“The follow-up drilling program is now due to commence in several days. The highest priority, initial target is the western end of the N1 lode.

“This is a large un-estimated area, with good geological continuity, where the first five intersections are planned.”

Nagambie shares rose on the news, and at 10:45 AEDT, they were trading at 2.1 cents – a rise of 40% since the market opened.

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