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Ausmex Mining Group (ASX:AMG) - Managing Director, Matthew Morgan
Managing Director, Matthew Morgan
Source: ResourceStocks
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  • Ausmex Mining (AMG) has announced the maiden global mineral resource estimate for the Mt Freda Complex near Cloncurry in western Queensland
  • The 113,000 ounces of indicated and inferred resources are spread across five near-surface deposits, highlighting the potential for a multi-pit mining hub
  • Ausmex is gunning for near-term gold production to fund further exploration in the hope of expanding the known resource
  • Scoping studies are underway to assess different mining scenarios at the Mt Freda complex deposits
  • Following the recent sale of the company’s Gilded Rose project for $4 million, Ausmex is in a strong cash position to advance activities at Mt Freda
  • On a tough day for the gold miners, Ausmex Mining closed 8.6 per cent lower, with shares priced at 3.2 cents each

Ausmex Mining (AMG) has announced the maiden global mineral resource estimate for the Mt Freda Complex near Cloncurry in western Queensland.

The 113,000 ounces of indicated and inferred resources are spread across five near-surface deposits, highlighting the potential for a multi-pit mining hub at Mt Freda.

Further upside

With the announcement of the global resource estimate, Ausmex is gunning for near-term gold production to fund further exploration in the hope of expanding the known resource.

As it stands, several high-grade historical intercepts from the Mt Freda pit were excluded from the resource estimate as they did not meet the JORC (2012) reporting requirements.

Other historical data, including ore processing recoveries and mining history also came into play in the estimate, with positive indications for successful future operations.

Pathway to first gold

Ausmex will have to submit a second mining lease application for the Little Duke project before it can begin planning in earnest to get it up and running.

Scoping studies are underway to assess different mining scenarios at the other Mt Freda complex deposits.

Ausmex has a view to developing a low-cost startup model using existing road infrastructure and third party processing facilities. This will help with cashflow for further exploration across the complex.

The Mt Freda pit itself is solely held by Ausmex.

The other projects, including Shamrock, Little Duke, Comstock and Falcon, all fall under the Golden Mile joint venture (JV) with Round Oak Minerals.

Ausmex holds an 80 per cent share of the JV, though any ores produced at Golden Mile must be processed through Round Oak’s 600,000 tonne per annum processing facility at Cloncurry.

Ausmex has engaged Como Engineering to review the facility ahead of first production.

Following the recent sale of the company’s Gilded Rose project for $4 million, Ausmex is in a strong cash position to advance activities at Mt Freda.

On a tough day for the gold miners, Ausmex Mining closed 8.6 per cent lower, with shares priced at 3.2 cents each.

AMG by the numbers
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