Ausmex Mining Group (ASX: AMG) has announced further outstanding drill results from the current resource definition drilling program within the Mt Freda suite of Mining Leases in Queensland.
The company reported assay results of up to 21.8 g/t Au under the Mt Freda pit, with high-grade gold continuing at depth to ~300 m.
Additional Diamond Core assays processed from below the Mt Freda open cut include 5 m @ 6.9 g/t Au (125 – 130 m) within 16 m @ 2.6 g/t Au (114 – 130 m); 6 m @ 4.8 g/t Au (270 – 276 m) including 2 m @ 13.2 g/t Au & 1m @ 21.8 g/t Au; and 6m @ 2.1 g/t Au (289 – 295 m).
AMG said that it commits to fast tracking the Mt Freda Complex to Gold Production in 2020 following these additional high-grade gold results.
Mt Freda complex project
The Mt Freda project, located in Cloncurry, Queensland is 80%-owned by Ausmex. Round Oak Minerals Pty Ltd owns the remaining 20% interest in the project and under the joint venture, Ausmex has the option to process its ore from Golden Mile at Round Oak’s processing plant in Cloncurry.
Mining at Mt Freda ceased in 1991 following the fall in gold price to historic lows below ~USD$300 per Oz. The existing Mining Lease ML 2752 is 116 Ha, is current and is granted until 2028.
The important targets in Mt Freda include Mt Freda Open Cut and Golden Mile target. The Golden Mile target hosts eight historic gold mines over a combined strike length of 8km and across a 2km wide zone.
Mt Freda’s Exploration Target is between 3,503,500 and 5,000,000 tonnes at a grade ranging between 2.0 to 4.0 grams per tonne gold.
High-grade historic results
The historic high grade gold drilling results from Mt Freda include:
- Diamond drill hole MF19DD177: 12 m @ 4.1 g/t Au (103 – 115 m) including 3 m @ 11.6 g/t Au with 1 m @ 17.7 g/t Au (immediately below the current pit floor);
- Diamond drill hole MF19DD187: 6m @ 3.6 g/t Au (133 – 139 m);
- RC Drill Hole MF19RC170: 5 m @ 7.9 g/t Au (198 – 203 m) includes 1 m @ 32.7 g/t Au;
- Diamond Drill Hole MF19DD186: 24 m @ 2.8 g/t Au (109 – 133 m) including 6 m @ 10.1 g/t Au (113 – 119 m) with 2 m @ 24.0 g/t Au (113 – 115 m);
- RC Drill Hole MF19RC183: 7 m @ 5.2 g/t Au (147 – 154 m) including 3 m @ 11.0 g/t Au.;
- RC Drill Hole MF19RC179: 10 m @ 2.8 g/t Au (165 – 175 m) including 6 m @ 3.8 g/t Au and 1 m @ 8.7 g/t Au; and
- RC Drill Hole MF19RC167: 9 m @ 2.3 g/t Au (172 – 181 m) including 4 m @ 3.6 g/t Au and 1 m @ 5.3 g/t Au.
Resource definition drilling
The company had recently commenced a resource definition drilling at Mt Freda. The drilling focused on the Mt Freda Open Cut and the Golden Mile Mining Lease application ML100201. These are located ~ 30 km by the existing haul road to ~1 million tonne per annum gold processing facilities in Cloncurry.
Further high-grade results
The company has reported high-grade results at Mt Freda from four diamond drill holes, MF19DD193, MF19DD197, MF19DD199, and MF19DD203.
- MF19DD193: 5 m @ 6.9 g/t Au (125 – 130 m) within 16 m @ 2.6 g/t Au (114 – 130 m)
- MF19DD197: 6 m @ 4.8 g/t Au (270 – 276 m) including 2 m @ 13.2 g/t Au & 1m @ 21.8 g/t Au
- MF19DD199: 8 m @ 2.2 g/t Au (92 – 100 m)
- MF19DD203: 6m @ 2.1 g/t Au (289 – 295 m)
Ausmex said that the current drilling program at Mt Freda has confirmed recently reported high grade gold drilling results.
Future plans
The Company reported that it is committed to fast tracking the Mt Freda Complex into gold production in 2020, including the current Mining Lease application at the Golden Mile ML100201, and progressing a Mining Study and Plan of Operations to re-commence mining at the Mt Freda Open Cut granted Mining Lease ML2752.
Ausmex said that the updates will be provided for Cloncurry shallow, near-term production gold projects, as well as IOCG target drilling results once the independent laboratories process the current back log of drill hole assays anticipated over the next four weeks.
The Company reported that it is progressing towards a combined Maiden JORC resources estimate for the Mt Freda Complex including the Golden Mile projects by late November 2019, with the aim of commencing a mining study and Plan of Operations to re-open Mt Freda.
The 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.
AMG reported that additional mapping, costeans, geophysical surveys, RC and Core drilling are being planned at Mt Freda.
