Ausmex Mining Group (ASX: AMG) has announced further encouraging update from the Diamond Core drilling at Little Duke prospect, part of Golden Mile high-grade gold projects in Queensland.
The company reported that 122 metres of IOCG style gold and copper mineralisation was intersected at the Little Duke project in drill hole LD19RD025. This includes gold grades up to 9.6 g/t Au and 3.05% copper.
Significant intersections in LD19RD025 include 68 m @ 1.44 g/t Au & 0.53% Cu ( 0-68 m) within 122 m @ 0.92 g/t Au & 0.32% Cu ( 0 -122 m).
The company said that the diamond core interpretation indicates Little Duke mineralisation radiates out of deeper conductive mineralisation as previously interpreted by Emeritus Professor Ken Collerson.
AMG noted that the Little Duke high-grade mineralisation within an Iron rich mineral system strikes >2 km south to the Ausmex Evening Star project and into the adjoining Newcrest Mining Ltd Canteen IOCG project.
The company also reported an update on the QLD Maiden JORC resource estimate progress.
Golden Mile projects
The Golden Mile is a joint venture (JV) with Ausmex (80%) and Round Oak Minerals Pty Ltd (20%). The Golden Mile consists of eight parallel north-south striking historical gold mines across a 2-kilometre-wide zone with a combined total strike length of more than 8 kilometres.
The important historic mines of the Golden Mile project include the Comstock; the Falcon; Shamrock Reef; the Jewel Gold/Cobalt; Little Iron Duke Gold Mine; Iron Duke Mine; and the Weatherly Mine.
Drilling at Little Duke
The company had commenced Diamond Core drilling at Little Duke prospect of the Golden Mile projects. The down RC hole LD19RC0025 had previously intersected 17 m @ 4.1 g/t Au with 1.2% Cu & 493 ppm Co (31 – 48 m) before becoming bogged.
The hole was recently re-entered and extended with diamond core. The company has now announced an encouraging update from the latest diamond core assays.
122 m wide IOCG style mineralisation intersected
The company reported that the core logging and assays from down RC hole LD19RC0025 indicate that the Little Duke project has the potential to host significant Iron Oxide Copper Gold (IOCG) style gold, copper & cobalt mineralisation from surface.
Ausmex noted that for drillhole LD19RD025, the IOCG style mineralisation continues down hole to 122 m and reported gold grades up to 9.6 g/t Au and 3.05% copper.
Significant intersections in LD19RD025 include 68 m @ 1.44 g/t Au & 0.53% Cu ( 0-68 m) within 122 m @ 0.92 g/t Au & 0.32% Cu ( 0 -122 m).
Current exploration target
The Golden Mile including the Little Duke project has the current Exploration target of between 13,000,000 to 18,000,000 tonnes at a grade of between 1.7 to 3.4 g/t of Au.
Additional ML
Ausmex said that additional Mining Lease application over the Little Duke Prospect is in progress. The company said that the final Little Duke drilling results will now be included in the draft ML application.
Update on maiden JORC resource estimate
The company has announced an update on the maiden JORC resource estimate of QLD projects.
Expanded scope delays estimation by 14 days
Ausmex reported that the Sydney based Consultants Geos Mining Pty Ltd are continuing to progress the Cloncurry Maiden JORC Resource estimate for both the Golden Mile and Mt Freda open cut.
However, the company said that there is now an expanded scope to assess the additional Evening Star and Canteen granted Mining Lease projects for gold, copper and cobalt. Both the Evening Star and Canteen projects contain remnant open pits where previous operators mined copper oxide material and sold to Mt Isa Mines.
The company said that the additional projects have extended the resource estimation by approximately 14 days, with estimates now due for completion by mid December 2019.
Mining studies to commence
The Company reported that it is engaging with Mining Engineering Consultants to commence Mining studies immediately upon completion of JORC estimating. This Study will be aided and advanced by the company’s existing knowledge and access to all necessary data on mining conditions that applied in the original Mt Freda Pit.
Next steps
The company reported that further work includes additional mapping, costeans, geophysical surveys, and RC and Core drilling.
Ausmex said that it is committed to fast tracking gold production in 2020 by utilizing current infrastructure and CIP processing capacity within Cloncurry.
AMG reported that the metallurgical test work will continue on Diamond Core bulk samples from all gold projects currently being drilled.
Management statements
AMG’s Managing Director Matt Morgan commented: “With continual drilling we have finally worked out the geology at Little Duke, with the latest diamond core assays indicating we have interested a 122 m wide IOCG style mineralised zone, near surface, with mineralisation extending down dip to the east under the Mt Freda Complex.
This fits our recent interpretation that the shallow ‘epithermal” high grade gold mineralisation at the Mt Freda Complex is sourced from a deeper IOCG style magmatic source.
Mineralisation at Little Duke is very similar to the Ausmex, Evening Star copper gold mine, ~ 2 km to the south, that adjoins the Newcrest Mining Ltd Canteen IOCG project. This indicates there may be an extensive magmatic source at depth feeding the near surface mineralisation over several kilometres, from the Newcrest Ltd Canteen project up to the Ausmex controlled Golden Mile.
Exploration has now ceased for the short term at Cloncurry whilst the Company now focuses on gold production in 2020 from the Mt Freda Complex. The Company aims to invest future gold production cash flow into an extensive drilling program in 2020 focusing on both shallow high-grade gold resources and deeper IOCG targets. The latest Little Duke results are now telling the Company where to drill next!”
