Nagambie Resources (ASX:NAG) has released its 2026 Annual Report, disclosing full terms of an earn-in joint venture with Alkane Resources subsidiary Mandalay Resources Costerfield Operations Pty Ltd that commenced on 9 April 2026, covering the company's Mining Licence MIN 5412 and Exploration Licence EL 5511.

Key Points

  • Alkane can earn a 60% interest by solely funding A$12.5 million within three years, or an 80% interest by solely funding a total of A$27.5 million within five years
  • Alkane completed 5,937 metres of diamond drilling in the September quarter, with logging and assaying completed for less than 30% of metres drilled
  • A share placement to a drilling company will fund the first A$248,000 of diamond drilling at the Wandean and Whroo projects, with drilling expected in the December quarter
  • If Nagambie's interest dilutes below 10%, it converts to a 2% Net Smelter Royalty capped at A$20 million total

Earn-In Joint Venture Structure and Terms

According to the filing, the earn-in joint venture (ANJV) between Nagambie and Mandalay Resources Costerfield Operations Pty Ltd, a wholly-owned subsidiary of Alkane Resources, commenced on 9 April 2026. Under the arrangement, Alkane can sole-fund expenditure across two pathways: a 60% joint venture interest by funding A$12.5 million within three years, or an 80% interest by funding a total of A$27.5 million within five years. Upon completing either pathway, an unincorporated joint venture forms with Alkane as Manager, with costs and voting proportional to participating interests. The joint venture covers Nagambie's Mining Licence MIN 5412 and Exploration Licence EL 5511.

Alkane Drilling Activity and Costerfield Processing Access

The filing states that Alkane completed 5,937 metres of diamond drilling during the September quarter, with logging and assaying completed for only the first three holes, representing less than 30% of metres drilled. Under the ANJV terms, Alkane will make its Costerfield processing plant, currently rated at 150,000 tonnes per annum, along with its Costerfield workforce, underground mobile equipment, and maintenance facilities available to the joint venture for mining and processing ore from the ANJV tenements. The Costerfield operation is located approximately 40 kilometres from the Nagambie Mine site.

Wandean and Whroo Exploration Projects

The annual report discloses that Nagambie retains 100% ownership of its gold-antimony Whroo and Wandean projects, which the filing describes as under-explored. The company said it is preparing to commence exploration drilling at both projects, with drilling expected to begin in the December quarter. A recent share placement to a drilling company will fund the first A$248,000 of diamond drilling across these projects. The filing also notes that Alkane is currently seven months into a 12-month option period, during which it may withdraw, in which case operatorship and 100% of all assets would revert to Nagambie.