Ausmex Mining Group Ltd (ASX:AMG) has highlighted mining major Newcrest Mining Limited (ASX: NCM) has started drilling a tier 1 iron oxide copper gold ore (IOCG) target adjacent to Queensland’s Mt Freda Complex and the anomaly extends into Ausmex tenements.
Sydney-based Ausmex controls the complex and Newcrest is drilling nearby as part of its newly-inked farm-in agreement with Washington H. Soul Pattinson and Co. Limited (ASX:SOL) delisted subsidiary Exco Resources Limited (ASX:EXS).
READ: Ausmex Mining Group survey to define targets at large conductive structure near Burra
Thirty per cent of Newcrest’s target is located on the complex Ausmex controls in Cloncurry district.
Exco was valued about $95 million when it was acquired by SOL in 2012, the year the subsidiary company discovered the large IOCG target near Queensland’s 1.5-kilometre wide and 1.8-kilometre long Golden Mile.
Newcrest is drilling at the Canteen project Exco discovered.
To the northwest of Canteen, the Mt Frieda 2.5-kilometre extension has returned outcropping gold on the surface grading up to 79.8 g/t gold.
READ: Ausmex Mining Group achieves high grades at historic Comstock mine on Golden Mile
Ausmex managing director Matt Morgan said: “The Ausmex team always suspected that we were sitting on a very large mineralised system at the Mt Freda Complex.
“To have this confirmed by a leading international mining house such as Newcrest Mining Limited, whom themselves have identified the Canteen project that adjoins the Mt Freda Complex as a tier 1 IOCG drilling target is exceptional.”
Morgan highlighted Ausmex controlled a “large area of shallow gold, copper, cobalt and rare earth element mineralisation associated with the IOCG alteration system”, in addition to 30% of the complex.
“This is the moment all junior listed companies wait for, the day a major starts drilling next door on a world-class target.
“For Ausmex shareholders to control one-third of this target is a wonderful outcome.”
Next steps
Mining Industry Consultants Hellman & Schofield are completing the final stages of a JORC resource for Mt Freda orebody.
Ausmex is continuing to drill the Golden Mile and Mt Freda Complex extensions.
The junior company hopes to define further shallow high-grade mineralisation with its efforts.
Ausmex holds a Golden Mile joint venture project in Queensland in an 80:20 joint venture with another of SOL’s subsidiaries, Round Oak Minerals Pty Ltd.
The Golden Mile is an area of extensive shallow gold, copper and cobalt mineralisation where Ausmex reverse circulation drilling recently returned up to 27.8 g/t gold.
Ausmex added 0.3 cents, or 7.69%, to 4.2 cents by market close today.