Ausmex Mining Group (ASX: AMG) has announced an encouraging update from its current resource definition drilling program within the Mt Freda project in Queensland.
The company reported that the RC and Diamond Core drilling confirms additional high-grade gold up to 32.7g/t under Mt Freda.
Significant drill hole results include 5 m @ 7.9 g/t Au (198-203 m) including 1 m @ 32.7 g/t Au; 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); and 7 m @ 5.2 g/t Au (147-154 m) including 3 m @ 11.0 g/t Au; 10 m @ 2.8 g/t Au ( 165-175 m).
Mt Freda gold mine
Mt Freda open cut was previously operated By Diversified Mineral Resources from 1987-1991 producing approximately 30,000 Oz of gold per annum at an average grade of 4 g/t Au.
Historic drilling prior to 2012 indicated significant gold remained below the current pit floor. The current Mining Lease ML 2752 is 116 Ha and granted until 2028.
The mine has current haul road access to two, third-party gold CIP ore processing facilities at Lorena and the Great Australian, with a combined processing capacity of approximately 1 Mtpa.
Ore from Mt Freda was recently processed at the Great Australian Mine currently operated by Round Oak Minerals Pty Ltd following the sale of a large stockpile in 2018 for $2.5 million cash.
Ausmex also has an option to process all ore produced from the Golden Mile projects at the Round Oak Minerals Pty Ltd Great Australian 600 ktpa Gold CIP processing plant in Cloncurry.
Resource definition drilling program
AMG had commenced a resource definition drilling program within the Mt Freda suite of Mining Leases.
The company reported that the drilling program has defined addition high-grade gold under the Mt Freda Open Cut. Ausmex noted that the recent drilling results confirms additional high-grade gold extends from the current pit floor and is still open at depth.
High-grade drill results
The company reported that the RC and Diamond Core drilling confirmed additional high-grade gold up to 32.7g/t under Mt Freda.
Significant drill hole results include 5 m @ 7.9 g/t Au (198-203 m) including 1 m @ 32.7 g/t Au from RC Drill Hole MF19RC170; 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) from Diamond Drill Hole MF19DD186; and 7 m @ 5.2 g/t Au (147-154 m) including 3 m @ 11.0 g/t Au from RC Drill Hole MF19RC183.
Other significant intercepts include 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 from RC Drill Hole MF19RC179; and 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 RC Drill Hole MF19RC167
Next steps
AMG reported that it is planning additional mapping, costeans, geophysical surveys, RC and Core drilling at Mt Freda.
The company reported that it will announce updates for both Cloncurry shallow, near-term production gold projects, and IOCG target drilling results as independent laboratories process the current back log of drill hole assays anticipated over the next four to six weeks.
Ausmex said 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 preliminary mining study for Mt Freda early December 2019.
The company said that the mining study will focus on fast-tracking gold production by utilizing the current infrastructure and CIP processing capacity within Cloncurry.
AMG said that the metallurgical test work will continue on Diamond Core bulk samples from all gold projects currently being drilled.
