Ausmex Mining Group Ltd (ASX:AMG) has started a Magnetotelluric (MT) Geophysical Survey over a large conductive structure near the historic mining centre of Burra in South Australia’s mid-north.
The purpose of the survey at 10 kilometre spacing within the 6,364 square kilometre area is to define shallow mineralisation that can be the subject of a drilling program.
It is being carried out by Ausmex in collaboration with the University of Adelaide and others.
Significant discovery
Earlier this year Ausmex announced that an exploration program conducted by Geoscience Australia over the company’s South Australian tenements had made a significant discovery.
This was the result of an MT survey by AusLAMP, Geoscience Australia, Geological Survey of South Australia and the Department of Earth Science at the University of Adelaide (UoA).
The MT program identified a large conductive structure within the Ausmex controlled ground.
Similar features to Olympic Dam
This structure’s signature shares similar features with the AusLAMP’s signature below the IOCG deposit at BHP Billiton Limited’s (ASX:BHP) Olympic Dam, both within the highly prospective G2 corridor.
The new MT stage I survey is aimed at defining targets for future drilling programs in a 4,379 square kilometre area and to test mineral pathways originating from the AusLAMP discovered structure.
The large conductive structure (in red) below Ausmex’s tenement suite at Burra.
A stage II program will cover a further 1,985 square kilometres.
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Ausmex and the university have completed 31 of the 95 sites with the work progressing well and on schedule.
The company has already received approaches from a number of interested major national and international mining companies based on results to date at Burra.
However, it has elected to carry out the forward MT and drilling programs alone until it can determine the magnitude of what it may discover.
Ausmex is well funded with zero debt and in a position to take this project and others to the next level before considering any joint ventures or partnerships.
Historic copper mining region
The Burra region became well known from the 1840s to the early 20th century with all discoveries and exploration based on outcropping structures.
However, Ausmex has always believed that the Burra region is actually substantially under-explored.
Managing director Matt Morgan said: “We have a large conductive structure deep below Burra and we have outcropping mineralisation in every EL in and around Burra.
“This program is designed to connect those features and to identify shallower conductive structures which, given the nature of what Ausmex sees around the district, may be a large IOCG or similar target.”