Far East Capital Newsletter
Nagambie Resources - the front runner in finding another Fosterville/Costerfield mine
16 Jul 2022

In This Issue

Nagambie Resources - the front runner in finding another Fosterville/Costerfield mine

It was a challenging week with the Dow Jones Index retreating as US inflation jumped to 9.1% last month, from 8.6% the previous month. Consensus is that interests rates will be ratcheted up even higher than previously expected and this led to a strengthening of the US$ and the reciprocal slide is commodity prices. All that said, our market performed reasonably well up until the news on Friday that Chinese GDP growth in Q2 was a minuscule 0.4%. That caused a late slump in metal stocks to end the week on a sour note. The only bright side is that falling commodity prices will help moderate inflation, especially oil prices. The market is engaged in a half-full or half-empty debate for the time being.

Following up on our recent comments regarding the Victorian goldfields, this week we have covered Nagambie Resources (NAG) in more detail, believing that this company is the best positioned prospective producer in the region.

Nagambie has the clearest pathway to an operating mine of any of the exploration companies in the area owing to the advantage of the existing ML, its extensive freehold land ownership and the open pits for tailing disposal. This will cut years off any approval process and enable a fast track to production.

The immediate news flow will be the release of assays for the last four drill holes, and then continued drilling. The objective will be to obtain as much data as necessary to allow it to apply for a Variation of Work Program. That will be needed to allow the excavation of an exploration decline for continued definition of resources and bulk sampling purposes. 

Suite 24, Level 6
259 Clarence St
Sydney NSW 2000

Phone: +61 417 863 187
Far East Capital