Ausmex Mining (ASX:AMG) upgrades contained gold at Mt Freda by 14pc

• Ausmex Mining Group (AMG) has updated the Queensland-based Mt Freda mine’s mineral resource estimate
• The inferred and indicated mineral resource now sits at 1.01 million tonnes at 2.66g/t gold for 86,000 ounces — representing an 18 per cent increase in gold grade and a contained gold increase of 14 per cent
• While this only accounts for the Mt Freda mine, the update has led to the Mt Freda Complex’s global resource increasing from 113,400 ounces to 124,300 ounces
• The Mt Freda Complex also includes the nearby Golden Mile Project, which comprises three historical gold mines
• Ausmex is now advancing feasibility studies and assessing the potential for an open cut mining operation
• Company shares have dropped 6.45 per cent to trade for 5.8 cents

Ausmex Mining Group (AMG) has updated the mineral resource estimate for the Mt Freda Complex in Queensland.

In June 2020, maiden global resource for the Mt Freda Complex was 1.7 million tonnes at 2.06g/t gold for 113,400 ounces. This included the Mt Freda and nearby Golden Mile Project.

When solely including the Mt Freda mine, the 2020 inferred and indicated resource was 1.039 million tonnes at 2.25g/t gold for 75,300 ounces.

Now, the Mt Freda mine’s total mineral resource sits at 1.01 million tonnes at 2.66g/t gold for 86,000 ounces. This represents an 18 per cent increase in gold grade and a contained gold increase of 14 per cent.

Broken down, the indicated resource sits at 613,000 tonnes at 2.91g/t gold and the inferred resource sits at 393,000 tonnes at 2.27g/t gold.

While this upgrade includes the Mt Freda mine and not the Golden Mile Project, the Mt Freda Complex’s global resource has increased to 124,300 ounces.

The updated mineral resource estimate for Mt Freda followed an eight-hole diamond and reverse circulation infill drilling program, which took place after the maiden resource was completed.

Ausmex is now assessing several mining scenarios for the Mt Freda Complex including initial open cut mining to extend the pit.

The company is also waiting to be granted a mining lease for the Golden Mile Project, which includes three historical gold mines.

Ausmex shares have dropped 6.45 per cent to trade for 5.8 cents at 12:30 pm AEDT.