Far East Capital Newsletter
Nagambie reported very high grade gold/antimony intercepts
20 Nov 2022

In This Issue

Nagambie reported very high grade gold/antimony intercepts

I'm currently in South Africa undertaking site visits for West Wits Mining (WWI) and Theta Gold Mines (TGM), two companies with multi-million ounce gold projects in the process of arranging financing for what promises to be long life operations with good profit margins. For some reason the markets have been reticent to embrace these companies notwithstanding their fundamental merit.

It is curious how investors and bankers are prepared to chase projects in African countries that have much higher geopolitical risk than South Africa, ignoring the great infrastructure and workforce that is available. Too many investors don't understand the commercial significance of the infrastructure that has enabled South Africa to be one of the premier mining jurisdictions in the world, for many years. I will write more on these companies when I get back home.

Nagambie has announced s a legitimate high-grade gold/antimony discovery in keeping with the orebodies at Costerfield and Fosterville, though the antimony grades look as if they could be much higher (2-3x). That is noteworthy given the critical metal tag that antimony now carries and the reliance of the world on antimony from China, Russia and Tajikistan for 85% of supply. NAG has already received approaches from potential strategic buyers of antimony concentrates.

Nagambie can benchmark this project with the Costerfield mine that is producing at a rate of 150,000 tpa for 70,000 oz p.a. of gold equivalent production. That mine is already down to 600-700m depth while the Fosterville mine is down to 1,000m. Nagambie can expect the same, meaning a long life mine. This is a work in progress now, but the pathway to very profitable production appears quite predicable. 

Suite 24, Level 6
259 Clarence St
Sydney NSW 2000

Phone: +61 417 863 187
Far East Capital