Nagambie Resources Limited announced the first batch of assay results for NAD012 were reported to the on 23 January 2023. The balance of the downhole sample assays for NAD012 have now been received from the On Site laboratory in Bendigo. All significant On Site assays (greater than 1.0 g/t Au or 1.0% Sb) received for NAD012 are summarised in Table 2. All assays previously reported on 23 January 2023 are signified as (PR).

The best new sample assays of 27.9% Sb, 29.4 g/t Au. 82.7 g/t AuEq occurred over a 1.2m downhole interval (426.8m to 428.0m). Assays are pending for NAD013-018 and NAD020-NAD032 (NAD019 has not been drilled yet).

For samples containing significant antimony, the individual Au and Sb assays were weighted for both sample thickness and bulk density. Consideration was then given to the MCOG of 3.0 g/t AuEq over at least 1.2m EHT. For full details regarding the calculation of sample bulk density, AuEq calculation, minimum mineable EHT and MCOG.

Nagambie calculates AuEq grades by applying a Costerfield Mine AuEq factor, the relative value of 1.0% Sb in the mine to 1.0 g/t Au in the mine. In CY2022, the AuEq factor was 2.36 based on Mandalay Resources' (owner of the Costerfield Mine) annual guidance in January 2022 of US$1,750 /oz Au and US$13,000 /tonne Sb. The Mandalay guidance for CY2023 is US$1,797 /oz Au and US$10,805 /tonne Sb.

The CY2023 AuEq factor applied is 1.91 as a result. The 12 high-grade intersections within the MCOG zones for the C1 and C2 vein systems to date average 16.4 g/t AuEq (6.0% Sb, 5.0 g/t Au) and have an average potential stope width of 2.0m EHT. The average of 16.4 g/t AuEq is 5.5 times the estimated mineable cut-off grade (MCOG) of 3.0 g/t AuEq.

This indicates potentially very-low operating cost, very-high operating margin mineralisation. The epizonal N-striking C1 and C2 vein systems are associated with the EW-striking Nagambie Mine Central Anticline and the various EW-striking thrust faults which dip to the north (due to the N to S compression event at the time of first mineralisation, circa 375 million years ago) and are known to continue regionally to kilometres in depth. The strike length of the C1 vein system is now currently around 100m.

The vertical extent of the C1 vein system is currently around 200m but could increase substantially, to 1,000m or more, with extensive further drilling - initially from surface and later from underground. The Fosterville epizonal mineralisation extends to more than 1,000m vertical depth and the Costerfield epizonal mineralisation is approaching 1,000m vertical depth.