Nice little article in the Far East Capital Newsletter Nagambie...

Nice little article in the Far East Capital Newsletter

Nagambie discovers a second high grade vein system

Nagambie Resources announced the discovery of a second high-grade gold/antimony vein system last week, about 200m from the first, C1 vein system. The discovery hole, NAD012, returned 1.7m at 10.4 gpt and 1.3m at 7.1 gpt AuEq. While these are good grades, they should not be assessed on grade alone, in isolation. The entire population of drill results need to be included when trying to get an idea of what a mining operation could achieve. So far the 10 high grade veins intercepts reported have an average grade of 16.3 gpt AuEq with an average stoping width of 1.8m. That looks impressive. Perhaps the most important observation of the discovery of a second vein system is the confirmation of the validity of the revised geological model. It took a few lesser holes (NAD004 to NAD006) to fine tune this model, but now that has been done the Company is getting much better success rates in the drilling. It expects to continue to identify additional vein systems with further drilling. A few shareholders commented that they were disappointed with the share price movements upon the release of the news on Monday. The shares initially jumpedabout 20% but unfortunately there was a large seller who decided to use this as a liquidity event to reduce his holding. That is just the way the market works. Shareholders should not be despondent, or look for any other reason for the lacklustre performance on the day.

Disclosure: Interests associated with the author own shares in Nagambie. Capital raising fees have been received. The author is a non-executive director.