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Ausmex progresses mining lease application for Golden Mile Joint Venture

The company is confident the Golden Mile application and the current Mt Freda Mining leases provides opportunities in the near-term.

Ausmex Mining Group Ltd - Ausmex  progresses mining lease for Golden Mile Joint Venture
Mt Freda gold stockpile processing (2018)

Ausmex Mining Group Ltd (ASX:AMG) has updated shareholders on the progress of mining lease ML100201 over the Golden Mile high-grade gold projects within the Mt Freda Complex, around 40 kilometres from Cloncurry, Queensland.

The Queensland Department of Natural Resources, Mines and Energy has progressed the application with final submissions from the public due by 24th April 2020.

The mining lease application is for mining only of cobalt ore, copper ore, gold, tungsten, wolfram, ad scheelite.

This is because the Golden Mile project is a joint venture with Round Oak Minerals Pty Ltd, a subsidiary of Washington H. Soul Pattinson and Co. Ltd (ASX:SOL).

Under the JV terms, the gold ore mined will be processed at Round Oak’s Great Australia Mine Gold Carbon in Pulp (CIP) facility in Cloncurry which is capable of processing 600,000 tonnes per annum.

JORC resource estimation

Ausmex is in the final stages of the JORC resource estimation for the Mt Freda Complex, following resurveying and geo-spacial datum amendments to eighty-four historic drill holes, with an anticipated April completion date.

Heavy tropical rain fall delayed the final survey control until late February 2020.

Scoping study planned

The company aims to commence a mine scoping study for Mt Freda in April 2020 and expects to submit a Plan of Operation to recommence open cut mining by June 2020.

Planning has also commenced for trial open pit mining and gold production to collect processing parameters for feasibility studies.

Mt Freda Complex including the Golden Mile lease

Processing options

Round Oak purchased a 200,000 tone low grade gold stockpile from Mt Freda and processed it at the Great Australian Mine in 2018 and Ausmex is now reviewing the processing of the remaining low-grade gold stockpiles at the site.

As there are current haul road facilities in place from both Mt Freda and the Golden Mile to third party ore processing facilities, Ausmex believes that both Mt Freda and the Golden Mile offer shareholders a very low capital requirement entry point into potential near-term gold production in 2020.

Cloncurry mining hub

The company’s long-term goal is to develop a Cloncurry Mining Hub at the Mt Freda Complex.

Currently Ausmex holds twelve granted mining leases within the Cloncurry region with nine comprising a combined area of over 200 hectares - all within hauling distance to third party ore processing facilities.

Mt Freda open cut was previously operated by Diversified Mineral Resources from 1987- 1991 and produced about 30,000 ounces of gold per annum at an average grade of 4 g/t.

Previous mining reports indicate recoveries of greater than 95% gold via CIP processing.

With the current mining lease of 116 hectares granted until 2028, Ausmex is confident that the combination of the Golden Mile application and the current Mt Freda Mining leases provides the potential to schedule development of a multi pit, mining hub facility within hauling distance of Cloncurry CIP processing facilities in the near-term.

Quick facts: Ausmex Mining Group Ltd

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