Ann: Quarterly Report, page-4

All right then
I'll go first

I guess we we all expecting far better results from our first drill - but alas - if I can use a fishing analogy again

the bait got taken with the first nibble

Does that mean there are no fish down there - not by a long shot - so lets look at some of the positives.

No stratigraphic carbonaceous shale was encountered in NAD001, which is encouraging for the use of IP in the Nagambie region. This means that the Nagambie Mine IP target, with an east-west strike length of over 2,000m, is more likely to be reflective of concentrations of sulphides throughout.

In summary then, the combination of the more southerly position of the Nagambie Thrust and the initial drop in the hole angle meant that NAD001 traversed to the north of, and then under, the junction of the Nagambie Thrust and the Upper Splay Fault (see Figure 1). This junction is interpreted to be the location of strong sulphide-gold mineralisation that gave rise to the discrete IP chargeability high and represents a well-defined follow-up drill target.

In other words the fish finder can see fish down there and not to be confused with other debris

The renewal by EPA Victoria of the Environmental Management Plan (EMP) for PASS Management at the Nagambie Mine is expected shortly.

❖ Tunnel boring for the Melbourne Metro Rail Project (MMRP) and the West Gate Tunnel Project (WGTP) is expected to commence in the June 2019 quarter. Tendering for the management of PASS in the tunnels for the MMRP and the WGTP is expected in the December 2018 quarter.

“The Company is well placed to win some or all of the management of PASS from the MMRP and WGTP in the December 2018 quarter.”

NAG is still in pole position to take the MMRP PASS

QUARRYING

Sales receipts for the quarter were $342,000 plus invoices issued during the quarter for the sale of quarry products but yet to be paid at the end of the quarter totalled an additional $121,000. Screening of Mine Tailings to Produce Aggregates and Rock Sand for Concrete Manufacture As reported in the March 2018 quarterly, commissioning of the Astec high-frequency dry screening unit on the mine tailings showed that it could remove the great majority of the fines from the various aggregate sizes (ranging between 4mm and 20mm) but that it will be more efficient, both in terms of final product quality and cost, to have the initial Astec unit feeding its product into a water washing arrangement ahead of a conventional multi-deck final screen. Designing and pricing of this arrangement, instead of purchasing a second Astec unit, was completed during the quarter. The economics are very robust for sales of the products to local end users such as concrete product manufacturers in Shepparton. The economics for sales into the Melbourne market are viable but will be significantly improved if Nagambie Resources is successful in winning some or all of the management of PASS from the MMRP and WGTP in the December 2018 quarter. Trucks bringing PASS to the Nagambie Mine from Melbourne could backload, after tray washing, the aggregates and rock sand.

Looks like our drilling program will be financed by buoyant quarry activities

and cash in the bank

At 30 June 2018, total cash held by the group was $941,000 plus $1,000,000 remains undrawn under the two-year Unsecured Loan Facility

Look forward to CAD001 and 002 now