Nagambie Mining (ASX:NAG) is expected to trade higher after it agreed to purchase all the shares in Auminco Goldfields, which holds the Clonbinane Goldfield halfway between Melbourne and Nagambie in Victoria.
Consideration is 13 million Nagambie shares plus $23,000 cash in relation to environmental tenement bonds.
Notably, a previous owner was Beadell Resources (ASX:BDR), which is capitalised at almost $500 million.
No exploration has been conducted at Clonbinane since 2008, and remains underexplored in terms of modern prospecting techniques.
The disseminated gold targets at Clonbinane are preferable superior to the more typical Victorian nuggetty quartz vein targets that have proven to be very difficult to evaluate, develop and mine profitably.
Nagambie’s initial interest is in mining oxide gold mineralisation at Clonbinane and trucking it to the Nagambie Mine, 60 kilometres to the north via the Hume and Goulburn Valley Freeways, for heap leach treatment.
The company will be targeting a total operating cost of A$600 per ounce of gold or less.
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