Ausmex Mining Group Ltd (ASX:AMG) has returned high grades in rock chip samples from reconnaissance field work at its Burra project in South Australia’s mid-north.
Historical drilling at the Princess Royal prospect focused on copper mineralisation with no assaying for cobalt and limited assaying for gold.
READ: Ausmex Mining Group survey to define targets at large conductive structure near Burra
Cobalt up to 3,570ppm, or 0.357%, was assayed from Ausmex’s rock chip analysis, as well as 6.9 g/t gold and 25% copper.
The sampling program collected 99 surface rock chip samples over a strike length of around 2.5 kilometres, with 25 samples returning greater than 510ppm cobalt.
Assays have also highlighted the prospectivity for copper and gold mineralisation to the north of the tenement, particularly along an eastern thrust faulted contact.
Ausmex believes this contact has a significant control on mineralisation in the area.
Maiden drilling program planned
Ausmex managing director Matt Morgan said the company was pleased with the high-grade rock chips and what it meant for the overall cobalt prospectivity of the district.
He said: “We now have a potential 30-kilometre corridor of cobalt, copper and gold mineralisation at Burra.
“[This confirms] the company’s belief that the area is highly prospective for economic mineralisation yet has been previously underexplored.
“This is a very exciting time for the company and shareholders, with a maiden reverse circulation drilling program being planned to target high-grade cobalt, plus an additional potential 30 kilometres of highly prospective mineralised ground to explore.”
Ausmex expects to commence a six-hole, 1,000-metre results-based drill program at the Burra project in August.