en.Wedoany.com Reported - Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has officially commenced diamond drilling at the Nagambie antimony-gold project in Victoria, Australia, marking the first on-site exploration activity since the company entered into an earn-in agreement with joint venture partner Nagambie Resources Ltd (ASX:NAG) over the tenement earlier this year.
The drilling program, executed by Alkane subsidiary Mandalay Resources Costerfield Operations Pty Ltd, targets antimony-gold discoveries at the historic Nagambie mine. The earn-in agreement, announced in April, has received shareholder and regulatory approvals, covering mining license MIN 5412 and exploration license EL 5511. Alkane has identified antimony as a strategic growth opportunity through its Victorian operations, including the producing Costerfield gold-antimony mine.
The initial drilling campaign aims to expand Nagambie's existing JORC Inferred Resource, which currently stands at 539,000 tonnes grading 3.9% antimony and 3.3 g/t gold, containing approximately 20,800 tonnes of antimony and 58,000 ounces of gold. Nagambie Chairman Kevin Perrin stated that the commencement of drilling is a significant milestone for the project and highlights Alkane's plans to expand the existing resource base. The project is located in one of Australia's most established antimony mining districts, near Alkane's Costerfield mine and the Fosterville gold mine in central Victoria.
The Nagambie joint venture provides Alkane with another avenue to expand its exposure to antimony operations, a critical mineral used in defense applications, semiconductors, batteries, and flame retardants. Global interest in antimony projects has intensified over the past two years, driven by Chinese export restrictions and increased efforts by Western governments to secure alternative sources of this critical mineral. Under the earn-in agreement arrangement, Alkane can gradually increase its interest in the project through exploration expenditure and development milestones, providing regular updates to Nagambie on exploration activities and drilling results. Nagambie stated that Alkane will provide quarterly exploration reports and notify its partner of any significant drilling results or exploration developments requiring market disclosure. The drilling launch comes as Alkane continues to build momentum across its broader asset portfolio. The company joined the S&P/ASX 200 index earlier this year and reported record quarterly profits and production from its three-mine portfolio comprising Tomingley, Costerfield, and Björkdal. Results from the Nagambie drilling program are expected to provide the first indication of the project's potential to support a larger antimony-gold resource and further strengthen Alkane's position in Australia's critical minerals sector.
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