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Systematic exploration of old gold workings continues to pay off for explorer Ausmex with high-grade, near-surface intersections of up to 18.8 grams per tonne of gold.

Anything above 5 grams per tonne is considered high grade.

The Ausmex (ASX:AMG) share price jumped briefly on the news, before settling at 5.8c by midday.

The Golden Mile project in Queensland consists of nine parallel zones of mineralisation — all of which were historical high-grade gold mines (see graphic below).

Maiden drilling at the “Falcon” mine returned high grade intersections of up to 4 m at 18.93 grams per tonne, 27 metres from surface.

This is the fourth historic mine drilled by Ausmex in a row that has hit high grade gold, with five known historic high-grade mines still to be tested.

Source: Ausmex.
Source: Ausmex.

Falcon is about 30 metres from the recently high grade “Shamrock” discovery, and 300m from the “Comstock” mine, where Ausmex recently intersected grades of up to 12.1 grams per tonne of gold.

Drilling will be used to establish a mineral estimate.

“[That’s] four out of four at the Golden Mile,” Ausmex managing director Matt Morgan said.

“It is remarkable that these projects have been untouched since 1939, with the true potential now only being realized by Ausmex.”

Any gold produced would be processed by Golden Mile joint venture (JV) partner Round Oak Minerals (Ausmex 80 per cent, Round Oak 20 per cent).

Under the JV agreement, Round Oak has first option to process the gold ore at its 600,000 tonnes per year facility, 35km  from Golden Mile.