- Ausmex Mining Group (AMG) is inching closer to releasing an updated mineral resource for the Mt Freda Gold Mine in Queensland
- The company completed a drilling program at the mine which aimed to upgrade the existing mineral resource which was released using limited drilling information
- Ausmex originally thought the updated estimate would be released in November, but multiple factors led to the delay of the drilling program
- Once the resource estimate has been updated, Ausmex will transfer the data for an underground mine design, costings and feasibility study for the Mt Freda Project
- Additionally, Ausmex is looking to upgrade the Golden Mile Project’s resource which is located about 500 metres from Mt Freda
- Company shares are up 7.94 per cent and are trading at 6.8 cents
Ausmex Mining Group (AMG) has provided an update on operations at its Mt Freda Gold Mine in Queensland.
Ausmex completed a drilling program at Mt Freda which aimed to upgrade a maiden mineral resource estimate that was released in June 2020. It currently sits at 1.7 million tonnes at 2.06g/t gold for 113,000 ounces of gold.
The 113,000 ounces of indicated and inferred resources are spread across five near-surface deposits within the Mt Freda Complex. However, the existing resource estimate was completed using very little drilling information and most historical drilling data wasn’t included.
At the start of December, Ausmex said it aimed to release the updated resource by the end of November, but due to drill rig availability and the slower rate of lab analysis, only five holes were completed within a six-week period.
While the resource upgrade is yet to be released, the company announced the results of three out of five drill holes last week. They include 11 metres at 3.6g/t gold from 41 metres to 52 metres including two metres at 13.8g/t gold, as well as 12 metres at 3.54g/t gold from 43-55 metres including four metres at 8.34g/t gold.
Once the resource estimate has been updated, Ausmex will transfer the data for an underground mine design, costings and feasibility study. These studies are expected to be completed within two to three weeks after receiving the upgraded JORC resource estimate.
Additionally, Ausmex is looking to upgrade the Golden Mile Project’s resource, which is located about 500 metres from Mt Freda.
Golden Mile includes the Comstock, Falcon and Shamrock gold mines where drilling has also been conducted.
The current JORC upgrade drilling program at Golden Mile has been designed to infill drill areas to confirm continuity of gold grades between the holes.
The three gold mines are held in a joint venture between Ausmex, who owns 80 per cent, and Round Oak Minerals who owns the remaining 20 per cent.
Under this joint venture, Round Oak is responsible for processing all of the ore mined.
Company shares are up 7.94 per cent and are trading at 6.8 cents at 1:59 pm AEDT.