Nagambie Joint Venture

Nagambie Resources Limited (NRL) and Golden Camel Mining Pty Ltd (“GCM”) have entered into a joint venture (JV) for the construction, commissioning, operation and rehabilitation of a gold toll treatment plant at Nagambie Resources 100% owned Nagambie Mine.

NRL and GCM received approval for the toll treatment plant in August 2021 and GCM has already commenced acquiring major items including the ball mill and components for the CIL circuit.

Detailed design of the plant has been completed and construction is scheduled to commence immediately following the completion of financing arrangements.
The facility will utilise leading technology to minimise environmental impacts, such as the use of geotubes to permanently store tailings. The JV is also investigating the option of augmenting grid power with renewable solar energy and biogas, utilising NRLs extensive land ownership surrounding the mine.

Principal terms of the 50:50 JVA include:

• For the initial treatment plant with a nominal capacity of 180,000 tonnes of ore per annum, GCM will pay for all the procurement, construction and commissioning costs and pay for the first fill of all consumables. GCM will also pay for the upgrade of associated site infrastructure such as the main mine entry, power supply and internal haul roads;
• Once steady state ore throughput and gold recovery has been achieved, all toll treatment revenues, operating costs, rehabilitation costs and sustaining capital will be shared 50:50 by NRL and GCM.
• All future plant expansions and gold recovery improvements will be paid for 50:50 by NRL and GCM;
• GCM will be the Manager of the JV with NRL and GCM being equally represented on the JV Committee. All JV Committee decisions will be unanimous and there will be no fee payable to the Manager;
• The initial ore will be trucked from GCM’s Golden Camel Mine;
• Toll treatment charges for third parties providing ore to the plant will be approved by the JV Committee based on recommendations from the Manager; and
• If NRL proceeds to recover residual gold from the historic Nagambie Mine Heap Leach Pad using bacterial solutions, the JV will periodically treat the pregnant solution and pour gold bars to NRL’s account.