Exploration company Ausmex has submitted a Mining Lease Application for the Golden Mile high-grade gold projects in the Mt Freda Complex in northwest Queensland.
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The 225-hectare MLA is for mining only as Ausmex has the option to process ore at the Great Australia gold processing facility in Cloncurry.
This could fast-track the mining lease approval process and Ausmex's Brisbane-based consultants managing the application said the Queensland Mines Department could approve the lease in nine to 12 months.
Ausmex is developing Golden Mile in a joint venture project with Round Oak Minerals (a subsidiary of Washington H Soul Pattinson) which has 20% and Ausmex the remainder.
Under the JV agreement, Ausmex has the option to process gold ore at Great Australia, owned by Round Oak.
Ausmex holds 12 granted mining leases in the Cloncurry region and nine of these with a combined area of over 200 hectares are within hauling distance to third party ore processing facilities.
The company said the combination of the Golden Mile application and Mt Freda mining leases provides short-term potential to schedule development of a multi-pit, mining hub facility within hauling distance of processing facilities.
Ausmex also said it was continuing gold resource definition drilling across the Mt Freda Complex as it progresses towards a November 2019 maiden JORC resource estimate.
The company expects to begin a mine scoping study for Mt Freda in December 2019 and aims to submit by March 2020 a plan of operation to recommence open cut mining activities.
Mt Freda open cut was previously operated by Diversified Mineral Resources from 1987 to 1991, producing 30,000 ounces year at an average grade of 4 g/t.
Mining ceased in 1991 following the fall in gold price to historical lows.
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