The Gold Toll Treatment Plant Approval

NRL and GCM are finalising a 50:50 Joint Venture (“JV”) Agreement (“JVA”) for the toll treatment plant.

Nagambie Resources Limited (“NRL”) (ASX: NAG) is very pleased to announce that NRL and Golden Camel Mining Pty Ltd (“GCM”) have received a Planning Permit from the Strathbogie Shire covering the removal of vegetation and the construction, operation, tailings disposal and rehabilitation of a gold toll treatment plant at the Nagambie Mine.

The terms of the Joint Venture Agreement will include:

For the initial treatment plant with a nominal capacity of 180,000 tonnes of ore per annum, GCM will pay for all the construction and commissioning costs and pay for the first fill of all consumables;

Any future gold recovery improvements will be paid for 50:50 by NRL and GCM;

GCM will be the initial Manager of the JV with NRL and GCM being equally represented on the JV Committee. There will not be an overriding percentage Management Fee;

All rehabilitation costs will be paid for by the JV;

Initial ore treated will be trucked from GCM’s Golden Camel Mine; 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. NRL will pay a fee based on the relevant costs incurred by the JV.

Construction of the facility, utilising selected existing plant in Australia, is planned by GCM to commence in the December 2021 quarter and be completed in the June 2022 quarter.