Ausmex Mining says it will pump money from its $7 million cash injection to its North West Queensland exploration.
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The owners of Mt Freda near the Mount Isa Inlier say they will spend $2.4 million in the June quarter of 2019 as their seven million capital raising via share placements in Ausmex was oversubscribed.
Their share placement was designed to help fund Mt Freda complex exploration where a massive 2000-metre-long conductive structure was identified at Golden Mile Gold Project southeast of Cloncurry. Other Ausmex projects in Queensland are Trump and Evening Star.
Ausmex are developing the Golden Mile in an 80-20 joint venture with Round Oak with an option for Ausmex to process all ore from the Round Oak 600,000 tonnes a year ore processing facility at Cloncurry which they hope will fasttrack any economic mineralisation into production
Ausmex have been encouraged by positive drilling results at next door Canteen prospect by Newcrest Mining.
They (Ausmex) are targeting IOCG-style mineralisation, with a 2D modelling study showing a strong response at Mullaby 400 metres below surface, spanning about 8 kilometres wide.
Mullaby prospect had been looked at by Mount Isa Mines in the 1990s but drill testing had not fully tested the conductive anomaly which was only drilled to a 204-metre depth.
Ausmex will now undertake 3D modelling in a program to encompass 10,000-metres of reverse circulation and diamond drilling to depths of 250-650 metres.
Ausmex managing director Matt Morgan said the ground has good prospects.
"(Ausmex) can offer shareholders exposure to a world-class mining province with significant Tier 1 IOCG targets," Mr Morgan said.
"With drilling due to commence within days at Cloncurry targeting large IOCG massive sulphide mineralisation the next three months may prove incredibly exciting for Ausmex shareholders."
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Derek Barry
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
Editor of the North West Star Mount Isa since January 2016. Prior to that, an editor at several regional southern Queensland newspapers. Passionate about telling local stories. Comes with a strange accent to due an Irish accident of birth.
