Ausmex Mining Group Limited (ASX: AMG) has reported encouraging results from the 10-hole infill drilling program at its Mt Freda project in QLD, with all five diamond core holes intersecting high-grade gold.
The company said that the drilling was designed to infill gaps from previous drilling to confirm the continuity of Gold grades between previous drill holes. The program consisted of 5 diamond core holes and 5 RC holes expected to upgrade the current JORC compliant resource estimate.
Significant intersections from the DD holes include 4 metres @ 11.40g/t Au within 8m @ 5.93g/t Au from 48-56m; and 2 metres @ 13.80g/t Au within 11m @ 3.60g/t Au from 41-52m.
Mt Freda project
The Mt Freda project is located approximately 60kms by road from the regional mining town of Cloncurry in NW Queensland.
Mt Freda is a historical high-grade Gold Mine, first operated as an underground mine in the 1940’s and again by Diversified Mineral Resources in the mid to late 1980’s. The ore was processed by an onsite CIP processing plant but ceased operations due to the collapse of the Gold price.
Historic drilling at Mt Freda had yielded encouraging results. Significant results included MF19DD186: 6m @ 10.10g/t Au and 2m @24g/t Au within 24m @ 2.80g/t Au; MF19DD193: 5M @ 6.90g/t Au within 16m @ 2.60g/t Au; MF19DD177: 3m @ 11.60g/t Au within 12m @ 4.10g/t Au; MF19RC170: 1m @ 32.70g/t Au within 5m @ 7.90g/t Au; MF19DD197: 2m @ 13.20g/t Au and 1m @ 21.80g/t Au within 6m @ 4.80g/t Au; MF19RC133: 1m @ 19.30g/t Au within 4m @ 6.30g/t Au; and MF19RC116A: 1m @ 29.30g/t Au within 5m @ 7.53g/t Au.
Infill drilling at Mt Freda
The company had commenced a 10-hole infill drill program at Mt Freda. The program was designed to infill gaps from previous drilling to confirm the continuity of Gold grades between previous drill holes.
As part of the 10-hole program, 5 RC holes were drilled simultaneously with the Diamond Core holes. All 10 holes were completed by mid-December 2020, with the samples logged and delivered to the mineral laboratories.
The company has now announced the assay results from the Diamond Core holes MF20DD001-MF20DD005. AMG said that the assays for the RC holes are expected shortly.
High-grade results from Diamond Core holes
The company reported that all of the five diamond core holes intersected high-grade gold.
Significant hits include MF20DD004: 4 metres @ 11.40g/t Au within 8m @ 5.93g/t Au from 48-56m; MF20DD001: 2 metres @ 13.80g/t Au within 11m @ 3.60g/t Au from 41-52m; MF20DD002: 4 metres @ 8.34g/t Au within 12m @ 3.54g/t Au from 43-55m; MF20DD003: 3 metres @ 18.59g/t Au within 5m @ 11.24g/t Au from 133-138m; and MF20DD005: 3 metres @ 5.76g/t Au from 119-122m.
Upgraded JORC MRE
AMG said that it will release an upgraded JORC Mineral Resources Estimate after the completion of all the data being installed into the Mt Freda Mine data base.
The company said that the mining and engineering studies and design for the mining by decline method would be updated based on the updated data from the new JORC resource estimate.
Drilling update – other projects
The company announced that infill drilling has commenced on the Comstock for JORC upgrade resource estimation. AMG said that at Falcon and Shamrock Gold projects, 3 x resource infill diamond core holes and two additional geotechnical diamond core holes for the pit design are underway.
The company said that it is currently awaiting the granting of the Mining lease that encompasses the project known as the Golden Mile. AMG said that it plans to mine the Golden Mile, commencing on completion of the upgraded JORC resource and finalizing the feasibility study subject to the granting of the mining lease.
AMG said that all the ore mined at the Golden Mile would be processed at the WH Soul Pattinson CIP processing plant located in Cloncurry as per the company’s agreement with its JV partners WH Soul Pattinsons 20%, Ausmex 80%.
The company said that further work at Mt Freda would include additional mapping, costeans, geophysical surveys, and RC and Core drilling.