Ausmex Mining Group Ltd (ASX:AMG) securities have gained 10.3% on reporting more high-grade gold reverse circulation (RC) drilling results from its Comstock gold mine joint venture project on Queensland’s Golden Mile.
Additional intersections such as 7 metres grading 7.6 g/t gold from 8 metres, including 3 metres at 12.01 g/t from 12m were returned from the drilling to extend the gold zone 25 metres north along a possible 6,000-metre strike length at the historic wartime mine.
Another hole returned 9m grading 2.40 g/t gold from 9 metres, including 4 metres at 4.50 g/t.
The company is preparing a maiden JORC gold-copper-cobalt mineral resource estimate for four zones spaced close together and in parallel along a potential 1,500-metre combined strike length at the Golden Mile.
Ausmex managing director Matt Morgan said: “The additional high-grade gold drilling results at the Comstock Project confirm the hidden potential of The Golden Mile precinct within the Mt Freda Complex.
“The company plans to systematically drill out each (individual) historic reef system within the Golden Mile precinct and continually define additional JORC mineral resource estimates.”
The company’s resource statements are expected to take in Comstock and other gold tenements the company holds along the Mt Freda Complex, Mt Freda Gold Mine, Drillers Hut, and the Canteen and Evening Star tenements.
Ausmex’s maiden RC campaign also returned a 12-metre intersection from Comstock prospect grading 2 g/t gold from 21 metres, including 3 metres at 3.40 g/t from 30 metres, a result reported 11 days ago.
Another drill result reported that day was: 8 metres grading 6.32 g/t gold from 8 metres, including 3 metres at 15 g/t gold from 13 metres; followed by 5 metres grading 8.81 g/t from 18 metres, including 3 metres at 13.91g/t from 19 metres in the same hole.
Comstock mine was shuttered in 1939, the year World War II began.
Morgan highlighted the company’s option to process ore from the project at Round Oak’s Cloncurry processing facility opened “the potential for significant early cash flow for the company”.
Morgan tipped results would continue to be released into the December quarter.
The company’s securities were up 0.4 cents, or 10.26%, to 4.3c by late morning.