Ausmex Mining Group says it has struck "bonanza gold" while drilling at the Golden Mile target, part of the company's 80%-owned Mt Freda Complex.
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Ausmex is fast-tracking a resource definition drilling program at the complex with six RC and diamond rigs on site to firm up JORC resources over Mt Freda south-east of Cloncurry.
The company has told the ASX they want to develop a shallow, high-grade, bulk mining operation and they have completed phase two drilling which found 7m at 10.5 grams per tonne gold.
Golden Mile hosts eight historic gold mines over a combined strike length of 8km and across a 2km wide zone.
These mines have been dormant since before the Second World War with Queensland Mines Department's records showing the Falcon mine produced at an average of 40.7g/t gold and Shamrock at 90g/t gold.
Ausmex hopes to take advantage of the current high gold price, $2000 an ounce, and is drilling beneath the historic open cut pit at Mt Freda, with a view to restart mining at the pit.
Mt Freda open cut mine operated between 1986 and 1989 and produced an average gold grade of 4g/t but was shut down when gold prices plunged.
Under the current program at Golden Mile, Ausmex will complete drilling at Shamrock, Falcon, Comstock and Mt Sheelite in the next three months.
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.
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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.
